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4 years ago

Use the table to indicate which description characterizes economies of scale and which characterizes economies of scope.

Business

1 answer:

kenny6666 [7]4 years ago

3 0

Answer and Explanation:

The economics of scope refers to the total cost production cost i.e to be averaged for the various type of goods

While on the other hand, the economics of scale refers to the benefit of the cost than occurs when there is a higher production level at a time

Based on this, the classification is as follows

1, Economics of scale as the output rises that declines the LAC so automatically it goes downward

2. economics of scope

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If a company reorganizes its operation to gain efficiency, the cost associated with this reorganization is classified as

ivanzaharov [21]

Answer: Restructuring cost

Explanation:

Restructuring cost could be described as making expenses on rejuvenating or reviving or rebranding the company through spendings, which affects most of it's mode of operations, brings a change and innovation and ways to improve existing methods. This is capital intensive due to the work and changes required during the process.

8 0

3 years ago

g Brief Exercise 186 For the items listed below, indicate whether the item is an asset, liability, or stockholders' equity item.

morpeh [17]

Answer:

For the items listed below, indicate whether the item is an asset, liability, income statement or stockholders' equity item

1) Rent expense - Expense (Income statement)

2) Equipment - Asset

3) Account payable - Liability

4) Common stock - Stockholder's equity

5) Insurance Expense - Expense (Income statement)

6) Cash - Asset

7) Account receivable - Asset

8) Retained earnings - Stockholder's equity

9) Service revenue - Income (Income Statement)

10) Notes payable - Liability

Explanation:

Items in the financial statement can be classified as Income, Expense, Asset, Liability or Equity

5 0

4 years ago

1. Compute the Office Products Division’s ROI for this year. 2. Compute the Office Products Division’s ROI for the new product l

Ghella [55]

Answer:

The complete question have been obtained online and attached below.

Returns on Investment (ROI) is the required Margin of profit the Business owners expect or are getting on their investment in the business.

The higher the returns therefore, the more impressed the business owners will be with the Management team

ROI = operating income divided by operating Assets x 100%

1. ROI for the year = 20%

2. ROI for the new line only = 16%

3. New Office product ROI = 19.2%

4. The manager will reject the proposed new line because it reduces his final ROI to 19.2% which doesn't guarantee him a bonus (I have attached a more detailed response in the attached working files)

5. Headquarters is anxious about the new product line being adopted because it gives an ROI above the business ROI of 15%.

6. Residual income (RI) is the absolute gain the Business has left distributable to shareholders after recognizing the expected Returns on Investment.

It is a gain over and above the ROI the shareholders have tasked the business to deliver.

Residual Income = controllable Margin - (Minimum Rate of return x Operating Assets)

A. RI for the year = $320,000

B. RI for the new line = $40,000

C. RI for the New office product division = $360,000

4. Improved RI is equal to $40,000, thus the Divisional Manager is very likely to approve the adoption of this new line.

8 0

3 years ago

According to the efficient markets hypothesis, changes in stock prices are impossible to predict from public information. excess

saveliy_v [14]

Answer:

Changes in stock prices are impossible to predict from public information.

Explanation:

Efficient market hypothesis states that in an efficient market asset prices tend to reflect all available information. As new information comes to light asset prices adjust accordingly.

Three forms of EMH exist weak, strong, and semi-strong.

The changes in asset price based on all bailable information is unpredictable, so it is impossible to outperform the market by expert selection of stock or market timing.

The only way to get higher returns is to get riskier investments as one cannot consistently predict performance of assets.

4 0

4 years ago

Using the direct write-off method for handling bad debts, what would the journal entry be to write off a $650 account receivable

Reika [66]

Answer:

Using the Direct Write-off method means that bad debts are removed from the Accounts Receivable as they occur instead of using an Allowance account.

Bad debts will be debited as this is an expense. Accounts Receivable will be credited to reflect that the account is reducing in value.

The relevant journal entry will therefore be;

DR Bed Debts $650

CR Accounts Receivable $650

7 0

3 years ago