Answer:
B. increasing returns initially and eventually diminishing returns.
Explanation:
Average variable cost initially, is high and tends to reduce with increasing number of units and on the long run then it ultimately tends to decrease.
Initially the returns are high on per unit, after that the company's return per unit decreases and the cost per unit in terms of variable cost also increases.
Average variable cost is less in the curve in the short middle term, then it tends to rise, as because variable cost starts increasing.
The company shall wisely choose to stop the production when the variable cost is increasing with a higher percentage than the decreasing revenue.
Yes....like business has its own
Answer:
Cold Chiller Corporation (CCC)
Investment in cash conversion cycle:
= $10 million x 60% = $6million
which is invested for 145 (80 + 35 + 30) days before being realized as cash.
Explanation:
The cash conversion cycle (CCC) is a metric that expresses the time (measured in days) it takes for a company to convert its investments in inventory and other resources into cash flows from sales. It gives us an indication as to how long it takes a company to collect cash from sales of inventory. Often a company will finance its inventory instead of paying for it with cash up front.
The formula for the Cash Conversion Cycle is:
CCC = Days of Sales Outstanding PLUS Days of Inventory Outstanding MINUS Days of Payables Outstanding.
CCC = DSO + DIO – DPO.
Days of Sales outstanding:
DSO = [(Beginning Accounts Receivable + Ending Account Receivable) / 2] / (Revenue / 365)
Days of Inventory Outstanding:
DIO = [(Beginning Inventory + Ending Inventory / 2)] / (COGS / 365)
Operating Cycle = DSO + DIO.
Days of Payables Outstanding:
DPO = [(Beginning Accounts Payable +Ending Accounts Payable) / 2] / (COGS / 365)
Answer:
Attractive nuisance occurs when a child trespasses a property because something in the land attracted him, e.g. an old wagon or car, an gets hurt by playing with it. The requirements for attractive nuisance to exist are:
- The child is hurt by playing with the object or structure that attracted him/her (the object must be man made).
- The person in charge of the place should have reasonably known that the object or structure could attract children.
- The person in charge of the place should have known that playing with the object or structure could pose a risk for children.
- The child needs to be young enough to not understand the risk of playing with the object or structure, e.g. someone 17 years old is not considered a young child though he/she is a minor.
- The risk associated with the object or structure is far greater than any decorative use given to the object or structure.
- The person in charge of the place failed to do enough to prevent the danger or protect any children that would eventually play with the object or structure, e.g. put a fence around it.
