Answer:
Amortized loan
Explanation:
An amortized loan is a loan with scheduled periodic payments that are applied to both principal and interest. An amortized loan payment first pays off the relevant interest expense for the period, after which the remainder of the payment reduces the principal.
Interest is calculated based on the most recent ending balance of the loan and the interest amount owed decreases as payments are made. This is because any payment in excess of the interest amount reduces the principal, which in turn, reduces the balance on which the interest is calculated.
Answer:
D. All of the above
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
2. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
3. Cash-flow from financing activities: it represents the cash flow from debt or equity. Basically, the costs used in a financing a business.
<em>The purposes of the statement of cash flows are to;</em>
A. Predict future cash flows.
B. Evaluate management decisions.
C. Determine ability to pay debts and dividends.
Answer:
Contribution margin per unit= $12.85
Explanation:
Giving the following information:
Direct materials$ 7.05
Direct labor$ 4.20
Variable manufacturing overhead$ 1.55
Sales commissions $ 1.15
Variable administrative expense$ 0.40
<u>To calculate the contribution margin, we need to use the following formula:</u>
Contribution margin per unit= selling price - total unitary variable cost
Contribution margin per unit= 27.2 - (7.05 + 4.2 + 1.55 + 1.15 + 0.4)
Contribution margin per unit= $12.85
Natural monopoly tends to serve a whole market exclusively.
<h2>What is Natural Monopoly?</h2>
A natural monopoly is a sort of monopoly that frequently arises as a result of the high start-up costs or considerable economies of scale of operating a business in a particular industry, which can result in significant barriers to entry for potential competitors. In a certain sector or region, a corporation with a natural monopoly might be the exclusive supplier of a given good or service. In industries that need specialized technology, raw materials, or other elements to function, natural monopolies may develop.
<h3>Key Features of Natural Monopoly</h3>
- A natural monopoly is a special kind of monopoly that develops when there is only one company that can effectively provide the service in a particular area due to high start-up costs and considerable economies of scale.
- A business with a natural monopoly may be the exclusive supplier of a good or service in a given sector or region.
- Natural monopolies are permitted when one firm can provide a good or service for less money than any potential rival, but they are frequently very tightly controlled to safeguard consumers.
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Answer:
encompasses allocating indirect costs to a cost object
Explanation:
Cost assignment -
It refers to the distribution of the cost in various objects and activities which initiate the proper bifurcation of the costs , is referred to as cost assignment .
The method is used in the activity - based costing .
It is also known as cost allocation .
All the direct and indirect cost are allotted with the help of cost assignment .
Hence , from the given information of the question ,
The correct answer is -
encompasses allocating indirect costs to a cost object .
