What is a reason that governmental accounting is different from business accounting?

The Get-There-Safe Bus company incurs an average cost of $45 for each passenger it carries on its trip from Atlanta to Chattanoo

algol [13]

Answer:

a. charged any ticket price above $0 for the four remaining seats

Explanation:

Marginal cost refers to the extra expense incurred by a business in producing as an additional unit. For a business to be profitable, its marginal cost should be equal or greater than the marginal revenue.

The Get-There-Safe Bus company has a marginal cost of zero or an additional passenger. It means the cost associated with selling one more passenger ticket is zero. For the bus company to be profitable, it must sell an extra ticket at a price greater than the marginal cost. Therefore, a price greater than zero will result in profit.

5 0

3 years ago

A firm's inventory was destroyed by fire on August 14 of the current year. Fortunately, the firm had insurance to cover the loss

aniked [119]

Answer:

cost of the inventory lost is $600,000

Explanation:

The cost of goods sold is computed as follows

$

Opening stock xxx

Add purchases during the year xxx

Less closing stock (xxx)

Cost of goods sold xxx

Gross profit is the profit after deducting just the cost of goods sold only. The gross profit margin is the proportion of sales made as gross profit. It indicates how well a company is managaing its cost of inpust.

If a company has a gross profit margin of 30% then the balance figure of 70% of sales represents the value of cost of goods sold.

So we can apply this to our question

Cost of goods sold = (100-40)% × Sales

= 60% × $1,000,000

= $600,000

Now we can work out the cost of the inventory lost which is the closing inventory:

Remember

cost of goods sold = Opening inventory + purchases - closing inventory

600,000 = 200,000 + 1,000,000 - y let y denotes closing inventory

y = 200,000 + 1,000,000 - 600,000

y = 600,000

cost of the inventory lost is $600,000

6 0

3 years ago

1. Consider the following project and its cash flow: Investment cost $10,000 Expected life 5 years Market (salvage) value* -$1,0

avanturin [10]

Answer:

PW = 2,911

FW = 5,856

Since both PW and FW are positive project may be accepted

Explanation:

the file attached below shows the full explanation

Download docx

8 0

4 years ago

Explain how the boss at the company in the following scenario could have delegated the tasks more appropriately : Samuel and Mar

OverLord2011 [107]

Answer:

Should have had Martha negotiate the logistics of the financial deal then have Samuel come up with the strategy plan

Explanation:

Samuel is quality control so he would know how to come up with a plan to best fit customer and company need assuring that both parties get the most out of the exchange and or business agreement

5 0

3 years ago

To survive and prosper, a business must gain and sustain ______ major competitive advantages over rival firms. A. as many as o

zloy xaker [14]

Answer:

C. at least several

Explanation:

Competitive advantage refers to a favorable situation or position a business enjoys over it's competitors owing to it's specialization or strength in performing a specific operation.

For example, in case of telecommunication, one company's competitive advantage could be superior network coverage with lower call drops than it's competitors.

In order to survive and grow, a business should try and gain competitive advantages in at least several fields and yet at the same time retain and maintain those competitive advantages over a period.

4 0

3 years ago