Answer:
Explanation:
Sunk, or past, costs are monies already spent or money that is already contracted to be spent. A decision on whether or not a new endeavor is started will have no effect on this cash flow, so sunk costs cannot be relevant.
For example, money that has been spent on market research for a new product or planning a new factory is already spent and isn’t coming back to the company, irrespective of whether the product is approved for manufacture or the factory is built.
Committed costs are costs that would be incurred in the future but they cannot be avoided because the company has already committed to them through another decision which has been made.
For the case of a consumer with an inelastic demand curve, it is less costly to cater for them, hence reducing the production fixed cost. given that different customers will be charged differently for the same product, it is easy to cover for a low profit range.
You'll have to cut back your expenses to not drive yourself into debt.
Another option would be to find an additional job or another job that can support your expenses.
Hope this helps!
Answer:
Option E. Control Activities
Explanation:
Control activities is a part of Control environment and in the given scenario, the company has a system of policies and procedures implemented to ensure whether the approved activities are carried out or not. This includes the segregation of duties, as the Compensation Committee is assigned the task to reviewing whether the payments that were made to the senior executives, both cash and equity based payments, are consistent with their contracts or not. Furthermore if it is not complied by the contract then relevant actions are carried out. So these are best represented by control activities.
Answer:
d) in both statements
Explanation:
Demand is individual buyer's ability & willingness to buy a good, at given price, period of time. Supply is individual seller's ability & willingness to sell a good, at a given price, period of time.
Market Demand is all market buyers' ability & willingness to buy a good, at given price, period of time. It is horizontal, i.e quantity summation of individual demand curves, at respective prices.
Market Supply is all market sellers' ability & willingness to sell a good, at a given price, period of time. It is horizontal, i.e quantity summation of individual supply curves, at respective prices.
Market Equilibrium prices are quantities are determined based on, Market Demand & Market Supply equalisation (not individual demand, supply). So, 'in the corn market' , 'price of corn' are determined by market demand & market supply. Hence, using 'demand' & 'supply' in both statements is inapt.
