Answer:
C)some inputs are fixed and some inputs are variable.
Explanation:
Usually, the fixed cost are usually fixed for a some levels of activity. However, as the level of activities increases, the fixed cost may also increase.
Variable cost on the other hand changes directly as the level of activities (say number of units produced) changes.
As such, in the short run, some inputs are fixed and some inputs are variable.
Option C is right.
Answer:
The future value is $6,894.21
Explanation:
Giving the following information:
Dominic Joseph deposits $5,000 in a new savings account. The account pays 5.5 percent interest compounded annually.
To calculate the future value, we need to use the following formula:
FV= PV*(1+i)^n
PV= 5,000
i= 0.055
n=6
FV= 5,000*(1.055)^6= $6,894.21
Answer:
True
Explanation:
Cash flow is a measure of the available cash and cash equivalent for operation in a business year.It has to be positive to generate value for investors and also to remain in business.
Profit is defined as the excess of income over expenses.
We need to know that profit are calculated on accrual basis, which means that income are recorded when earned and expenses recorded when incurred. In a situation where most sales are on account , i.e no instant cash payment and most expenses are on cash basis, this could cause a deficit in the cash flow volume. The level of inventory held could also lead to a negative cash flow despite a profitable operation if it is too high.
John buys a toy plane from a toy store. The money he pays the store <u>is injected back into</u> the economy through <u>the employee's wage </u>and the taxes paid by the store.
