Answer: Option (D) is correct.
Explanation:
Correct option: A nation cannot have a comparative advantage in the production of every good.
A country has a comparative advantage in producing a commodity if the opportunity cost of producing that commodity in terms of other commodity is lower than the other country.
While calculating the opportunity cost of producing a commodity, country takes into account both the commodities. Hence, it was not possible that a country is having comparative advantage in the production of every commodity.
Answer:
C
Explanation:
A. Substantial number of accounts does not specify if these are large or small amounts, and large amounts would need to have a positive confirmation.
B. If these risks are high, there needs to be postivie confirmation from the clients of the company since there is high risk involved.
D. If the clients are not going to give them consideration, and the point of a negative confirmation is that it is a valid receivable, there is no way of knowing if they didn't reply if its correct or if they just didn't reply.
...lower the amount of products they create.
Answer:
$14,500
Explanation:
The computation of the balance in the work in process account is shown below:
= Direct material cost + direct labor cost + manufacturing overhead cost
where,
Direct material cost = $2,500
Direct labor cost = $4,000
Manufacturing overhead cost = $4,000 × 200% = $8,000
So, the ending balance in the work in process account is
= $2,500 + $4,000 + $8,000
= $14,500
Answer:
Enterprise value = $20.988 million
Explanation:
We calculate the FCFF first using the given information.
FCFF from EBIT = EBIT * ( 1 - Tax rate) + Depreciation - Working Capital increase - Capital expenditure
Thus, the FCFF for Victoria Enterprises is:
- FCFF = 1.3 million * (1 - 0.35) + 0.309 million - 0.053 million - 0.309 million
Using the FCFF we calculate the firm value using constant growth model as,
Value = 0.792 * ( 1 + 0.06) / 0.10 - 0.06 = $20.988 million
