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andriy [413]
3 years ago
8

What is the motivation for stockpiling? a. to avoid the unintended transformation of inventory before sale or use, rendering it

inappropriate for its original purpose b. to produce at a level rate despite varying demand for the finished goods output c. to avoid delays in order fulfillment due to inadequate supply d. to save money by ordering large amounts that last longer and reduce the frequency of deliveries
Business
1 answer:
Tems11 [23]3 years ago
3 0

Answer:

c. to avoid delays in order fulfillment due to inadequate supply

Explanation:

Stockpiling refers to keeping a large amount of inventory to have it avaiable in the future. Usually, companies do this when they think that the products may not be available to purchase it later and they decide to buy a large amount to avoid problems with the supply. According to this, the answer is that the motivation for stockpiling is to avoid delays in order fulfillment due to inadequate supply.

The other options are not right because having a large inventory is not related to be able to produce at a level rate, stockpiling can lead to unintended transformation of inventory and you might save money by ordering a large amount but you will increase your storage costs to maintain the inventory in a warehouse.

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Farmer Brian has 3 acres of land which he farms efficiently. Each acre can support 10 apple trees. However the 3 acres differ in
Alex17521 [72]

Answer:the opportunity cost of growing another apple tree is 2 orange trees

Explanation:

Opportunity cost represents the  value of cost  what must be given up toin order to obtain the best alternative.

Here Farmer Brain has 3 acres of land that can support 10 apple threes on each acre, and 30 orange tree on best acre, 20 on good acre and 10 oranges on bad acre.

that means he can grows 30 apples  on the 3 acres and 60 oranges at  on the 3 acres. giving us

the opportunity cost of growing an orange tree is

60 oranges ( 30+20+10)trees= 30 apples tress

1 orange tree = 30/60

1 orange tree=1/2 apples

therefore the opportunity cost of growing an orange tree is half apple tree, Also the opportunity cost of growing an apple tree is 2 orange trees

7 0
3 years ago
Walters manufactures a specialty food product that can currently be sold for $21.20 per unit and has 19,200 units on hand. Alter
sdas [7]

Answer:

$37,760

Explanation:

The income for the current operation, without further processing, is given by:

I_1 = 19,200*\$21.20\\I_1=\$407,040

If the product is further processed at a cost of $11,200, the company would sell 11,200 units at $31,80 each and 5,200 at $19.20 each, for an income of:

I_2= 11,200*\$31.80+5,200*\$19.20-\$11,200\\I_2=\$444,800

Therefore, the incremental net income of processing further would be:

\Delta I=I_2-I_1=\$444,800-\$407,040\\\Delta I=\$37,760

The incremental net income would be $37,760.

5 0
2 years ago
Ramon incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100
olasank [31]

Answer:

Ramon’s basis in the stock he receives in his corporation is $84,000

Explanation:

The computation of Ramon’s basis in the stock received in his corporation would be $84,000 as this amount reflect the adjusted basis of the assets transferred to the corporation.  

These assets include inventory, building, and land. So, the total amount of the total assets would be received i.e based on an adjusted basis, not the fair market value  

6 0
2 years ago
Elain's Inflatables earns service revenue by providing party planning services and inflatable playscapes. Elaine?'s Inflatables
Ede4ka [16]

Answer:

The accounting entry for each transaction is given below.

Gibson contributed $10,000 to the business in exchange for capital.

Debit Cash Asset       $10,000

Credit Capital              $10,000

b. Purchased equipment for $5,000 on account.

Debit equipment Asset      $5,000

Credit Payable Liability       $5,000

c. Paid $400 for office supplies.

Debit payable         $400

Credit Cash Asset   $400

d. Earned and received $2,500 cash for service revenue.

Debit Cash Asset    $2,500

Credit Income          $2,500

e. Paid $400 for wages to employees.

Debit Wages expense   $400

Credit Cash Asset          $400

f. Gibson withdrew $1,000 cash

Debit Capital          $1,000

Credit Cash Asset  $1,000

.g. Earned $1,000 for services provided. Customer has not yet paid.

Debit Receivable           $1,000

Credit Service Income   $1,000

h. Paid $1,000 for rent.

Debit Rent expense   $1,000

Credit Cash Asset      $1,000

i. Received a bill for $250 for the monthly utilities. The bill has not yet been paid.

Debit Utility expense     $250

Credit payable                $250

8 0
3 years ago
Flask Company reports net sales of $4,000 million; cost of goods sold of $3,600 million; net income of $720 million; and average
denpristay [2]

Answer:

1.16

Explanation:

Given that,

Net sales = $4,000 million;

Cost of goods sold = $3,600 million;

Net income = $720 million

Average total assets = $3,450 million

Total Asset Turnover Ratio:

= Net Sales ÷ Total Average Assets

= $4,000 million ÷ $3,450 million

= 1.16

Therefore, the total asset turnover ratio of Flask Company is 1.16.

3 0
3 years ago
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