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3 years ago

What is the difference between the value of a firm's final product and the value added by the firm to the final product?

Business

1 answer:

sweet [91]3 years ago

3 0

Answer:

The value of a firm's final product is the selling price whereas value added refers to the addition of value to the raw material (intermediate products).

Explanation:

The term "value added" describes the enhancement a company gives to its product before offering it to the customer. It can be considered as an extra special feature added by a company to increase the value of a final product.

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The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server. The budgeted ope

Savatey [412]

Answer:

ROI = 10.5%

Explanation:

The ROI of a Division is the portion of then operating assets that is earned by as operating income by it. The higher the better.

Net operating assets = 28,600,000 - 600,000 = 28,000,000

ROI = Income/ Net operating assets × 100

ROI = 2,940,000/28,000,000 × 100

= 10.5%

5 0

3 years ago

. JetGreen Cleaners makes 80% of its sales on credit. Experience shows that 25% of the credit customers pay in the month of sale

anastassius [24]

Answer:

July = $237,600

August = $238,400

Explanation:

Note that credit sales account for only 80% of total sales, the remainder should be considered as cash receipts in the month of sale. Cash receipts for July are 20% of July total sales, plus 25% of July credit sales, plus 55% of June credit sales, and 20% of May credit sales:

$J = 0.20*280,000+0.8*(0.25*280,000+0.55*220,000+0.20*180,000)\\J= \$237,600$

Cash receipts for August are 20% of August total sales, plus 25% of August credit sales, plus 55% of July credit sales, and 20% of June credit sales:

$A = 0.20*200,000+0.8*(0.25*200,000+0.55*280,000+0.20*220,000)\\A= \$238,400$

Budgeted cash receipts are:

July = $237,600

August = $238,400

5 0

3 years ago

Definition of economic costs

VikaD [51]

Answer:

Definition of Economic Costs

Implicit and Explicit Costs:

The wholesale cost for the pianos that Darnell pays the manufacturer Explicit Cost

The salary Darnell could earn if he worked as an accountant Implicit Cost

The wages and utility bills that Darnell pays Explicit Costs

The rental income Darnell could receive if he chose to rent out his showroom Implicit Cost

Complete the following table by determining Darnell's accounting and economic profit of his piano business.

Profit

(Dollars)

Accounting Profit $89,000

Economic Profit $3,000 ($89,000 - 86,000)

If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $__86,000____.

This economic profit includes the rental and salary income that Darnell can earn.

Explanation:

a) Data:

Sales Revenue = $842,000

Cost of goods sold 452,000

Wages & Utilities = 301,000

Opportunity cost of showroom = $38,000

Opportunity cost of employment = $48,000

Total opportunity cost = $86,000

Profit (Dollars)

Sales Revenue = $842,000

Cost of goods sold 452,000

Gross profit $390,000

Wages & Utilities = 301,000

Net Income $89,000

Opportunity cost of showroom = $38,000

Opportunity cost of employment = $48,000

Total opportunity cost = $86,000

6 0

3 years ago

Bank dealers in conversations among themselves use a shorthand notation to quote bid and ask forward prices in terms of forward

lora16 [44]

Answer:

C) in swap transactions where the trader is attempting to minimize currency exposure, the actual spot and outright forward rates are often of no consequence.

Explanation:

Swap transactions occur with negotiations based on the profitability of two goods, in relation to the profitability related to the value of a currency of a given location. As the currency value of these two goods can vary significantly, the traders involved in this process always seek to minimize currency exposure, as well as real cash rates. This gives space for bank brokers to use shortened laces notation, where future price predictions are considered.

3 0

3 years ago

The following financial resources were among those received by Seco City during year 1:_____

Burka [1]

Answer:

A) $0

Explanation:

Seco City will record $0 as special revenue funds during year 1 with respect to the foregoing resources.

The $6,000,000 for acquisition of major capital facilities would be recorded as capital projects fund.

$2,000,000 to create a non-expendable trust would be recorded as private purpose trust fund.

8 0

3 years ago

What is the difference between the value of a​ firm's final product and the value added by the firm to the final​ product?

What is the difference between the value of a firm's final product and the value added by the firm to the final product?