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MariettaO [177]
3 years ago
5

Which of the following would be an argument for using the gross cost of plant and equipment as part of operating assets in retur

n on investment computations? a. It is consistent with the conputation of net operating income, which includes depreciation as an operating expense.b. It is consistent with the balance sheet preventation of plant and equipment. c. It eliminates the age of equipment as afactor in ROI computations d. It discourages the replacement of old worn-out eqipmt because of the dramatic, advene effect on RO.
Business
1 answer:
omeli [17]3 years ago
4 0

Answer:

Correct Answer:

a. It is consistent with the computation of net operating income, which includes depreciation as an operating expense.

Explanation:

The above option is the right answer due to fact that depreciation of the equipment  is an operating expenses. Therefore, the gross cost is used as part of operating assets during computation.

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Question 19 A company just starting in business purchased three merchandise inventory items at the following prices. First purch
Lunna [17]

Answer:

Answer is A. USD 80/-

Explanation:

Using FIFO costing, we get:

  • <u>Gross Profit = Sales - Cost of Goods Sold </u>

COGS (Cost of Goods Sold) for two units,

COGS = First purchase + Second purchase

COGS = $70 + $80

COGS = $150

Sales = $230

  • <u>Calculating the Gross Profit: </u>

GP (Gross Profit) = Sales - Cost of Goods Sold

GP = $230 - $150

GP = $80

7 0
3 years ago
Read 2 more answers
"A municipality has a tax rate of 18 mills. A piece of real property in the municipality is assessed at $180,000 and has a fair
White raven [17]

Answer:

$3,240

Explanation:

Calculation for the annual tax liability on the property

Using this formula

Annual tax liability= (Tax rate× Real property )

Where= Tax rate =18 million

Real property=180,000

Let plug in the formula

Annual tax liability=( .018x180000)

Annual tax liability=$3,240

Therefore the annual tax liability on the property is $3,240

5 0
3 years ago
When Home Movies Inc. opened stores in other countries, it increased the company's international market share. Home Movies took
olga55 [171]

Answer:

<h2>In this instance,Home Movies Inc. took advantage of market expansion opportunity to enhance market share.Hence,the correct answer is market expansion.</h2>

Explanation:

In Microeconomics,the practice of market expansion refers to the enhancement of business activities or selling of goods and services into newer sections of the market which encompasses factors such as demographic,economic,geographical,social etc.In this context,the geographical expansion of market can possibly include international markets as well as long it can comprehensively cover the desired consumer group which can lead to higher revenue generation and potential market share.It is an extremely formidable economic strategy for any business organisation or company to expand the consumer accessibility by tapping into new geographical areas in the global or international market.An effective market expansion,however, requires a thorough and considerable market research with a specific emphasis on the the potential new markets that the existing business can easily reach and the new consumer base in those markets who will most probably like the products and/or services sold by the business based on various preferential attributes.This can evidently generate immense opportunities for sales and overall economic growth.

6 0
3 years ago
A financial planner is examining the portfolios held by several of her clients. Identify which of the following portfolios is li
Stolb23 [73]

Answer: A portfolio containing 30 randomly selected stocks will have the smallest standard deviation.

Explanation:

A portfolio containing 30 randomly selected stocks tend to have a lesser covariance between the security returns. Also, there will be increased diversification. This increased diversification lowers the risk of portfolio thereby resulting in a lower standard deviation.

Other options are not correct. A portfolio consisting of 30 energy stocks will have a higher level of covariance between the security returns. Therefore, the standard deviation is lower.

A coefficient of variance greater than one will have a high level of variance while a coefficient variance less than 1 has a lower level of variance. A lesser covariance will result to a lower standard deviation and vice-versa.

6 0
3 years ago
Which factor caused a higher oil prices to directly lead to inflation?
defon
The government began to print more money. The increase in the ‘money supply’ which happens faster than the economic growth leads to inflation. When the government prints more money then it brings down the value of the money in the market.
7 0
2 years ago
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