<span>The us of independent channel members in a channel of distribution allows manufacturers </span>to achieve distinctive clients with a similar item or diverse clients with various items exceptionally basic for vast and little firms.
Ex) apple store, apple site, best purchase with apple items
Answer: True
Explanation:
Cost-volume-profit analysis is refered to as the predictive tool that can be used for the determination of the profit consequences of the price changes, future cost changes, price and the volume of the activity changes.
It requires the management to classify all the costs as either fixed cost or variable cost with respect to production or sales volume within the relevant range of operations.
Answer:
Future value
Explanation:
Future value is the value an assets as currently based on the assumed rate of its growth or increase.
Determining the future value of money or an investment helps one to make calculated decisions on what to get from the purchasing power of such money or how much the investment will be worth in the future.
Future value is calculated using
FVi=PV (1+I)n
Where
FVi is the value at the end of a particular period.
PV is price value.
I is the interest rate.
n is the number of compounding periods.
Answer:
PV= $7,528
Explanation:
Giving the following information:
Future value= $15,000
Number of periods= 8 years
Interest rate= 9% compounded annually
<u>To calculate the present value, we need to use the following formula:</u>
PV= FV/(1+i)^n
PV= 15,000/(1.09^8)
PV= $7,528
Answer:
C. Economic entity assumption
Explanation:
Monetary unit assumption: As per this assumption, US dollar is considered to be a king. The accountants are forbidden of logging transactions in any other currency. It also grant accountants permission to ignore inflation when reviewing the statements considering that purchasing power of a dollar remains unchanged.
Going concern assumption: As per this assumption, a firm will continue its operations for the foreseeable years. Irrespective of the fact, whether the owner is alive or not, a firm may continue to operate unless dissolved. In case of bankruptcy, a firm will discontinue its operations.
Cost principle: As per this principle, an asset should be recorded at the acquired price. The acquired price is the price at which the asset was originally purchased i.e. the historical cost of an asset.
Economic entity: Each firm or organization is an economic entity and has a separate artificial identity from its owner or stakeholders. So, only the transactions pertaining to business are recorded and personal expenses are excluded from the financial statements of the firm.
Thus, the personal expense of president of the company should not have been recorded in the financial statements of the company.
