Answer:
42,51%
Explanation:
Accounting Rate of Return (ARR) = Average Profits / Average Investment
Calculation of Average Profits
Average Profit = Sum of Profits / Number of Years
= (300,000+290,000+240,000×8)/10
= $2,510,000 / 8
= $313,750
Calculation of Average Investment
Average Investment = Initial Investment + Scrape Value / 2
= $1,476,000/2
= $738,000
Accounting Rate of Return (ARR) = $313,750/$738,000×100
= 42,51%
the difference between a product cost and a period cost is explained below.
Costs are classified as either product costs or period costs for the purposes of valuing inventories and evaluating expenses for the balance sheet and income statement.
Product costs are allocated to inventories and are treated as assets till the products have been sold.
Product costs become the cost of goods sold on the income statement at the point of sale.
Period costs, on the other hand, are directly taken to the income statement as expenses for the period in during which they are incurred, according to standard accrual practices.
Product cost in a merchandising company is how much the company has paid for its merchandise.
In a manufacturing company's external financial reports, product costs include all manufacturing costs.
Selling and administrative costs are regarded as period costs in both types of businesses and are expensed as they are incurred.
Hence, product cost and periodic cost differ in nature.
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Answer:
The correct answer is D. Holly Wreaths, a store that sells Christmas ornaments to customers via its online click-to-order catalogs
Explanation:
Direct marketing channel is the process of selling directly to the end buyer without any intermediary.
Holly Wreaths is selling directly to customers via its online click-to-order catalogs so this is direct marketing channel.
Answer:
B
Explanation:
absolute adv. -- able to produce more at lower costs with same amount of resources
lower costs ....labour costs low
Answer: D) derived
Explanation:
Derived demand refers to a situation where the demand for a good or service is as a result of the demand in another good or service. For example, if the demand for mobile phones increases, the demand for lithium batteries will increase as well.
In the example, Partac Peat clay demand increases as a result of an increase in the demand for tennis playing therefore it is a derived demand based on the demand for the tennis.