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3 years ago

Three basic decisions must be made by all economies. What are they?

Business

1 answer:

KiRa [710]3 years ago

5 0

Answer:

3 basics decision that need to made or taken by all the economies are

1. What to produce

2. For whom to produce

3. How to produce

Explanation:

The 3 basic decisions which should be made by the all economies are:

1. What to produce - Under this, the economies need to decide that what product or service they need to produce, which is liked by the consumers or purchased by the consumers so that they could sell their product in the market and earn profit out of it. In this, the economy need to take care of the needs or demand of the consumers and produce accordingly.

2. How to produce - Then the second decision is regarding how to the produce the goods or services, which the customers or consumers want as they have the limited resources available with them and from that they cannot produce all the products. So, they need to choose or decide.

3. For whom to produce or who consumes it - Under this, they required to take the decision regarding that for whom they are producing the goods or services whether it is a company or a consumer or economy.

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Based on the following data for the current year, what is the inventory turnover? Sales on account during year $700,000 Cost of

Elodia [21]

Answer:

2.7

Explanation:

The inventory turnover is defined as the ratio between the cost of merchandise sold during the year and the average inventory.

Average inventory can be defined as the mean between initial and ending inventory. The inventory turnover is:

$IT=\frac{\$270,000}{\frac{\$110,000+\$90,000}{2} } \\IT=2.7$

The inventory turnover ratio is 2.7.

3 0

3 years ago

All of the following are assumptions of cost-volume-profit analysis except a.the sales mix is constant. b.costs can be divided i

Vikentia [17]

Answer:

d. within the relevant range of operating activity, the efficiency of operations can change.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Generally, to use the cost-volume-profit analysis, financial experts usually make some assumptions and these are;

1. Sales price per unit product is kept constant.

2. Variable costs per unit product are kept constant and the total fixed costs of production are kept constant i.e costs can be divided into fixed and variable components.

3. All the units produced are sold i.e there is no change in inventory quantities during the period.

5. The costs accrued are as a result of change in business activities.

6. A company selling more than a product should simply sell in the same mix i.e the sales mix is constant.

<em>Hence, the aforementioned are assumptions of cost-volume-profit analysis except that, within the relevant range of operating activity, the efficiency of operations can change.</em>

6 0

3 years ago

An investment advisor has a client base composed of high net worth individuals. In her personal portfolio, the advisor has an in

e-lub [12.9K]

Answer: c. recommend Torex, but she must disclose her investment in Torex to the client.

Explanation:

The investment advisor is allowed to recommend Torex to her clients as she believes that it is financially sound and undervalued which means that there is a chance for her clients to earn a good enough return.

She must however disclose to them that she has an investment in the company so that they can decide on their own if this may have biased her decision towards the company as a viable investment option.

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2 years ago

Administrators

rodikova [14]

Answer:

advanced education

Explanation:

just got it right on edge 2020

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2 years ago

Read 2 more answers

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

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3 years ago