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3 years ago

Of the following products, which one would typically carry high psychological risk for the average consumer?

Business

1 answer:

dedylja [7]3 years ago

4 0

Answer:

an expensive mink coat

Explanation:

High psychological or perceived risk refers to the uncertainty that a consumer may have when he/she is purchasing a good or a product. Usually expensive goods carry a high perceived risk, e.g. house, boat, jewelry, car, etc.

In this case, an expensive mink coat carries high perceived risk because it is an expensive product and a customer considers the pros and cons of purchasing it.

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Suppose that two factors have been identified for the U.S. economy: the growth rate of industrial production, IP, and the inflat

Delicious77 [7]

Answer:

11.3%

Explanation:

Given that,

Growth rate of industrial production, IP = 4%

Inflation rate, IR = 3.0%

Beta = 1.1 on IP

Beta = 0.5 on IR

Rate of return = 7%

Before the changes in industrial production and inflation rate:

Rate of return = α + (Beta on IP) + (Beta on IR)

7% = α + (1.1 × 4%) + (0.5 × 3%)

7% = α + 4.4% + 1.5%

7% - 4.4% - 1.5% = α

1.1% = α

With the changes:

Rate of return:

= α + (Beta on IP) + (Beta on IR)

= 1.1% + (1.1 × 7%) + (0.5 × 5%)

= 1.1% + 7.7% + 2.5%

= 11.3%

Therefore, the revised estimate of the expected rate of return on the stock is 11.3%.

6 0

3 years ago

A company has budgeted direct materials purchases of $300,000 in July and $480,000 in August. Past experience indicates that the

enyata [817]

Answer: $696,000

Explanation:

Given the following;

JULY direct material purchase = $300,000

AUGUST BUDGET

direct material purchase =$480,000

Selling and administrative expenses = $48,000

Depreciation expense = $36,000

Purchase of office equipment = $72,000

Wages expenses = $150,000

Only 70% of the amount of purchases made in a month being paid that month. The remaining 30% paid the next month

Therefore, total Budgeted cash disbursement for the month of August will include ;

30% of July purchase

0.3 × $300,000 = $90,000

70% of August direct material

0.7 × $480,000 = $336,000

Wage expense = $150,000

Office equipment purchase =$72, 000

Selling and administration expenses = $48,000

= $(90,000 + 336,000+ 150,000+72,000+ 48,000) = $696,000.

3 0

2 years ago

For each activity, select the impact on the accounting equation. After doing all transactions, ensure that the accounting equati

soldi70 [24.7K]

Answer:

<u> Assets = Liabilities + Equity </u>

1) 15,000 0 15,000

2) 9,000 9,000 0

3) 1,200 1,200 0

4) 2,400 2,400 0

5) (12,000) 0 0

12,000 0 0

6) 3,000 0 3,000

7) (4,000) (4,000) 0

8) (2,400) (2,400) 0

9) 0 (1,200) 1,200

10) (1,000) 0 (1,000)

TOTALS 23,200 5,000 18,200

5 0

3 years ago

Hagy Corporation has an activity-based costing system with three activity cost pools--Processing, Setting Up, and Other. The com

Katyanochek1 [597]

Answer:

$112,000

Explanation:

The computation of using activity based costing for overhead costs to activity cost pools is below:-

Factory utilities for processing

= $99,000 × 0.30

= $29,700

Factory utilities for Setting up

= $99,000 × 0.50

= $49,500

Factory utilities for others

= $99,000 × 0.20

= $19,800

Total = $99,000

Indirect Labor for processing

= $13,000 × 0.20

= $2,600

Indirect labor for setting up

= $13,000 × 0.30

= $3,900

Indirect labor for others

= $13,000 × 0.50

= $6,500

Total = $13,000

Overhead costs = $99,000 + $13,000

= $112,000

3 0

2 years ago

With an activity flexible budget, a budget variance is calculated a.based on a flexible budget based on various activity drivers

Vadim26 [7]

Answer:

C. 1. Identify the actual quantity of output. 2. Calculate the flexible budget for revenues based on budgeted selling price and actual quantity of output. 3. Calculate the flexible budget for costs based on budgeted variable cost per output, actual quantity of output, and actual fixed costs.

Explanation:

Any budget starts by determining our current output level.

To calculate the sales budget we must estimate our total revenue using our current output level and the estimated selling price for the next period. If we are certain that our output level will increase or decrease significantly over the next period, we can use the estimated output level instead of the current output level.

To calculate the costs budget we must estimate the variable costs per unit times the current output level (variable costs budget) and then we add the estimated fixed costs, which are not necessarily our current fixed costs.

Read more on Brainly.com - brainly.com/question/13853544#readmore

8 0

2 years ago