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3 years ago

Profit plays an important role in business give any four reason to justify the statement

1 answer:

3 0

-it’s a source of finance (so the business can expand, pay debts and unprecedented costs etc...)

-it motivates owners and workers by rewarding them so they’re more efficient and likely to continue on in the business

-it’s an indicator of success (owner knows their product is succeeding so it helps decision-making, competitors and stakeholders are attracted to the business)

-this one’s a bit wishy washy but I would say it rewards owners for their risk taking which also aids decision-making and motivates them

-there’s certainly more but off the top of my head! Good luck x

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Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing departme

lakkis [162]

Answer:

Option D , $15.12

Explanation:

Weighted-average method :

Materials

Units transferred to the next department = 10,300

Ending work in process:

Materials: 1,200 units × 90% = 1080

Equivalent units of production =10,300+1080= 11,380

Materials

Cost of beginning work in process inventory= $2,700

Costs added during the period = $173,900

Total cost (a) =$173,900+$2,700 = $176,600

Equivalent units of production (b)= 11,380

Cost per equivalent unit (a) ÷ (b) = $15.51

The cost per equivalent unit for materials for the month in the first processing department is closest to $15.51

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3 years ago

Avocado Company has an operating income of $80,000 on revenues of $1,000,000. Average invested assets are $500,000 and Avocado C

WARRIOR [948]

Answer:

A. 8%

Explanation:

Profit margin = (Operating income / Revenue)

Profit margin = ($80,000 / $1,000,000)

Profit margin = 0.08

Profit margin = 8%

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2 years ago

Water Technology, Inc. Incurred the following costs during 20xt. The company sold all f ts products manufactured during the year

Thepotemich [5.8K]

Answer:

Part 1

Variable Costs

Direct material $5,000,000

Direct labor $2,400,000

Fixed Costs

Utilities (primarily electricity) 120,000

Depreciation on plant and equipment 220,000

Insurance 150,000

Supervisory salaries 400,000

Property taxes 230,000

Salaries of top management and staff 372,000

Office supplies 45,000

Depreciation on building and equipment 80,000

Part 2

Forecast the 20x2 cost amount for each of the cost items listed

Direct material ($5,000,000 x 1.20) $6,000,000

Direct labor (2,400,000 x 1.20) $2,880,000

Utilities (primarily electricity) $120,000

Depreciation on plant and equipment $220,000

Insurance $150,000

Supervisory salaries $400,000

Property taxes $230,000

Salaries of top management and staff $372,000

Office supplies $45,000

Depreciation on building and equipment $80,000

Explanation:

Variable Costs vary with the level of production. Examples are Direct Materials and Direct labor.

Fixed Costs remain constant for any production level. Examples are Depreciation and Utilities such as electricity.

A growth in Sales will affect the Variable Costs only. As production increases to meet the 20 percent growth in sales so do these costs since they vary in direct proportion to the level of production.

4 0

3 years ago

Which is the most liquid form of money?

dalvyx [7]

The answer is A - I just took the test!

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2 years ago

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Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity

Leviafan [203]

Answer:

Appreciate more

Explanation:

Suppose an increase in the demand for dollars has caused an appreciation of the dollar. According to the purchasing power parity theorem, the value of the dollar in the future will appreciate more. This is because the shift in demand and supply will cause an increase in the value of the dollar. Purchasing power parity (PPP) is a theory which states that exchange rates between currencies are in equilibrium when their purchasing power is the same in each of the two countries.

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3 years ago