Answer: B. In the short run, the typical firm increases its output and makes an above normal profit.
Explanation:
I have attached a graph to explain.
Originally the Perfectly Competitive Market is in a long run Equilibrium.
This means that at 5000 units the $20 selling price was as a result of Marginal Revenue being equal to Marginal Cost.
Now a sudden change in Demand has taken the price up which then forces the Marginal Revenue Curve upwards.
This will culminate with the Marginal Revenue Curve now intersecting the Marginal Cost curve at a higher point being point F so that profit can be maximised.
This higher level will thus lead to a higher output than 5000 units at point Q as the firm will increase output.
Notice that at that point the Marginal Revenue is higher than Average Total Cost meaning that an Above normal profit is being made.
Do react or comment if you need any clarification.
The description explained depicts urban renewal.
Urban renewal were the policies that were out in place to enable housing authorities and local governments to demolish the neighborhoods that were considered to be blighted and poor and then replace such neighborhoods with real estate that were more valuable and were usually reserved for the white people.
Houses that were seen to be slums were destroyed and newer and fascinating neighborhood were constructed.
In conclusion, the correct option is C "urban renewal".
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Answer:
$6,250
Explanation:
Cost of machine = $114,800
Salvage value = $14,800
Life of machine = 4 years
Depreciable cost = Cost - Salvage value
= $114,800 - $14,800
= $100,000
Date of purchase = October 1, 2020
Assets used for period in 2020 = 3 months
Annual depreciation:
= Depreciable cost ÷ life of assets
= $100,000 ÷ 4
= $25,000
Depreciation expense for 2020:
= Annual depreciation × (3 ÷ 12)
= 25,000 × (3 ÷ 12)
= $6,250
True.
Managerial accounting can be identified as the process and procedures that create documents and reports to assist management in the decision-making processes of running a particular company.
It also refers to the information that managers need in order to make decision about the improvement of a particular company.
<h3>Further Explanation</h3>
Managers use managerial accounting to measure the success or failure of a business and also to determine the achievement of the business goals. In addition, managers use managerial accounting to identify whether a department is efficient or a departmental project is doing well and meeting targets and expectations.
How it differs from Financial Accounting
Managerial accounting and financial accounting can be differentiated through the followings:
- Managerial accounting is mainly used for internal purposes, unlike financial accounting.
- Managerial accounting focus on internal performance like departments, projects, and processes while financial accounting is focus on the business as a whole.
- Managerial accounting is used to help managers improve business processes exactly the same way financial reporting helps investors make investment decisions.
- In managerial accounting, managers and managerial accountants don’t have to worry about following Generally Accepted Accounting Principles (GAAP) like financial accountants do, because management reports never get issued to banks or external parties like financial reports do
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KEYWORDS:
- managerial accounting
- decision-making
- financial accounting
- accountants
- department
Answer:
b. 6 years.
Explanation:
The formula and the calculation of the payback period is presented below:
= Initial investment ÷ Net cash flow
where,
Initial investment is $263,000
And, the net cash flow = After-tax net income + depreciation expenses
= $2,000 + $1,500
= $3,500
Now placed these values in the formula above, so the period would be equal to
= ($21,000) ÷ ($3,500)
= 6 years
