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3 years ago

Summarize the effect of credit card interest on the real cost of items.

Business

1 answer:

JulijaS [17]3 years ago

3 0

Answer with its Explanation:

The result is that some of the credit cards pays interests on the cash surplus and charges interests on the cash deficit. If the interest rate is higher then the interest on the real cost of items that are finance with the negative balance will be charged interest on the higher interest rate because the interest rate is higher. If the interest rate is lower then the effect of credit card interest rate would be higher on the real cost of items.

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Waterway Industries purchased a depreciable asset for $610000 on January 1, 2018. The estimated salvage value is $61000, and the

Wittaler [7]

Answer:

The depreciation charge in 2021 is $ 164,000.00

Explanation:

Annual depreciation charge=cost-salvage value/useful life

cost is $610,000

salvage value is $61,000

useful life is 9 years

Annual depreciation charge=($610,000-$61,000)/9=$61000

The depreciation of charge of $61000 is applicable to years 2018 ,2019 and 2020 respectively.

The estimates of the asset changed in the year 2021,hence a new depreciation based on the present book value is required.

revised depreciation charge=$610,000-($61,000*3)-$99,000/(5-3)=

$164,000.00

5 0

3 years ago

For incentive pay to motivate employees to contribute to the organization's success, the pay plans must be well designed. Which

olga nikolaevna [1]

Answer:

C. Employees value the rewards or incentives that are being offered

Explanation:

Let's see the different options for answer...

A. Performance measures are to be linked to the individual's goals

No. Even if the performance measures should be linked to the individual's goals, just the mere existence of such KPI is not sufficient to motivate employees. There has to be some performance reward attached to it.

B. Employees are given very broad performance goals

No. To get a good performance and motivate employees, they must be given clear goals and objectives.

C. Employees value the rewards or incentives that are being offered

Yes. Even if you have good performance measurements, with realistic goals, the employees won't be motivated to reach those goals if the reward doesn't worth the effort.

D. Employees are given limited resources to meet their goals

No. They won't be motivated if they don't think they have the means to achieve those goals.

6 0

3 years ago

There are __ in every economy that are used to produce the goods and services that people want and need

d1i1m1o1n [39]

Answer:
limited resources

6 0

3 years ago

During the first month of operations ended July 31, Western Creations Company produced 80,000 designer cowboy hats, of which 72,

bulgar [2K]

Answer:

Western Creations Company

1. Income Statements for July and August, under absorption costing:

July August

Sales Revenue $4,320,000.00 $4,320,000.00

Cost of goods sold 3,240,000.00 2,649,600.00

Gross profit $1,080,000.00 $1,670,400.00

Total selling & admin. exp. $169,000.00 $169,000.00

Net Income $911,000.00 $1,501,400.00

2. Income Statements for July and August, using variable costing:

July August

Sales Revenue $4,320,000.00 $4,320,000.00

Variable cost of goods sold 3,081,600.00 2,491,200.00

Contribution margin $1,238,400.00 $1,828,800.00

Fixed expenses:

Total fixed costs 345,000.00 345,000.00

Net income $893,400.00 $1,483,800.00

3a. The reason for the differences in the amount of the income from operations in in (1) and (2) for July is the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

3b. The reason for the differences in the amount of the income from operations in (1) and (2) for August is also the cost of goods sold based on full manufacturing costs for (1) while only variable costs are considered for (2).

Explanation:

a) Data and Calculations:

Number of hats produced = 80,000

Number of hats sold = 72,000

Ending inventory = 8,000

1 Sales $4,320,000.00

2 Manufacturing costs: July August

3 Direct materials $1,600,000.00 $1,280,000.00

4 Direct labor 1,440,000.00 1,152,000.00

5 Variable manufacturing cost 240,000.00 192,000.00

6 Fixed manufacturing cost 320,000.00 320,000.00

Total manufacturing costs $3,600,000.00 $2,944,000.00

Under absorption costing:

Unit cost = $45 ($3,600,000/80,000) $36.80 ($2,944,000/80,000)

Cost of goods sold = $3,240,000 ($45*72,000) $2,649,600 (36.8*72,000)

Ending Inventory = 360,000 ($45*8,000) 294,400 ($36.8*8,000)

7 Selling and administrative expenses:

8 Variable $144,000.00 $144,000.00

9 Fixed 25,000.00 25,000.00

Total selling & admin. exp. $169,000.00 $169,000.00

Under variable costing:

2 Manufacturing costs:

3 Direct materials $1,600,000.00 $1,280,000.00

4 Direct labor 1,440,000.00 1,152,000.00

5 Variable manufacturing cost 240,000.00 192,000.00

8 Variable selling & admin cost 144,000.00 144,000.00

Total variable costs = $3,424,000.00 $2,768,000.00

Unit variable cost = $42.80 ($3,424,000/80,000) $34.60

Cost of goods sold = $3,081,600 ($42.80 * 72,000) $2,491,200

Ending Inventory = 342,400 ($42.80 * 8,000) 276,800

6 Fixed manufacturing cost $320,000.00 $320,000.00

9 Fixed selling & admin. cost 25,000.00 25,000.00

Total fixed costs = $345,000.00 $345,000.00

7 0

3 years ago

. In a perfectly competitive market, the demand curve facing each individual seller is assumed to be ... a) perfectly inelastic

bagirrra123 [75]

Answer:

e) perfectly elastic

Explanation:

Elasticity is a measure of the sensitivity of demand to the price of a product. If demand is elastic, bidders should avoid raising prices as demand decreases considerably. Conversely, when demand is inelastic, consumers are less sensitive to price changes. When demand is perfectly elastic, this means that a slight increase in the price of a good will cause all demand to flow to a competing supplier. This is observed in competitive markets where providers provide the same type of good for the market price. If one of them raises the price, he loses all of his market share. This is because consumers are rational and will buy the product that is offered at the lowest possible price.

8 0

3 years ago