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NNADVOKAT [17]
3 years ago
6

T/F: If Harold runs a grocery store and is making a normal rate of return, we can infer that he is also making an economic profi

t.
Business
1 answer:
Misha Larkins [42]3 years ago
3 0

Answer:

False

Explanation:

It does not necessarily means that when a firm gets a normal rate of return, it earns economic profit also, as it depends on various factors:

  • In the short run every firm aims to recover its variable cost, and in it's long term duration to recover its total cost, but it does not necessarily conclude that the return will attain the level of earning economic profit.
  • Normal rate of return is based on competitive market, as an average rate of return on market, but if the investment is made from borrowed funds, it might be that the company is not able to pay the cost of borrowing in that case it is even after attaining the normal rate of return it will not earn economic profit.
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Mariulka [41]
<span>SPYWARE is any technology that aids in gathering information about a person or organization without their knowledge. It can also send information to another entity without the consumer's consent. In the internet, it is mostly used for tracking and storing internet users' movements on the Web.</span>
7 0
4 years ago
Sunland Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based
Tanya [424]

Answer:

<h2>a. Traditional Cost</h2>

Product 540X

= Revenue - Cost

= 200,000 - 53,000

=$147,000

Product 137Y

= 162,000 - 48,000

= $114,000

Product 249S

= 92,000 - 25,000

= $67,000

<h2>B. ABC Costing</h2>

Product 540X

= Revenue - Cost

= 200,000 - 47,100

=$‭152,900‬

Product 137Y

= 162,000 - 29,000

= $‭133,000‬

Product 249S

= 92,000 - 49,900

= $‭42,100‬

c.

Difference in Income for 540X

= \frac{Income under ABC - Income under Traditional costing}{Income under Traditional costing} \\\\= \frac{152,900 - 147,000}{147,000} \\\\= 0.0401

= 4.01%

Difference in Income for 137Y

= \frac{Income under ABC - Income under Traditional costing}{Income under Traditional costing} \\\\= \frac{133,000 - 114,000}{114,000} \\\\= 0.1667

= 16.67%

Difference in Income for 249S

= \frac{Income under ABC - Income under Traditional costing}{Income under Traditional costing} \\\\= \frac{42,100 - 67,000}{67,000} \\\\= -0.3716

= -37.16%

6 0
3 years ago
During a conference call with the corporate office, you are told by a senior executive that you will be going abroad in the next
vladimir2022 [97]

Answer:

C.Clarify the situation, and ask specific questions about the overseas company's cultural and ethical practices. Also, ask what your company policies are regarding intercultural ethics.

Explanation:

In doing business with foreign cultures one needs to know the expected way transactions are conducted in the country.

A senior executive told you on conference call that you should increase expense amount because when you travel abroad for a trip you will give $5,000 each to top executives of a large account.

In your locale it may be considered bribery, but in the foreign country it may be rude not to give a gift when doing business.

So you need to clarify what acceptable ethical practices are with the foreign company.

6 0
3 years ago
Mayan Company had net income of $32,500. The weighted-average common shares outstanding were 10,000. The company has no preferre
madreJ [45]

Answer:

The company's earnings per share is $3.25.

Explanation:

Earnings per share (EPS) refers to a financial metric that shows an indication of the amount of money that is made a company for each share of its stock.

The earnings per share of Mayan Company can be calculated using the formula for calculating earnings per share as follows:

Earnings per share = Net income /  Weighted-average common shares outstanding ..................... (1)

Where;

Net income = $32,500

Weighted-average common shares outstanding = 10,000

Substituting the values into equation (1), we have:

Earnings per share = $32,500 / 10,000

Earnings per share = $3.25

Therefore, the company's earnings per share is $3.25.

6 0
3 years ago
The internal rate of return (IRR): I. rule states that a typical investment project with an IRR that is less than the required r
Ierofanga [76]

Answer:

II, III, and IV only

Explanation:

The first statement is wrong. IRR is the rate that causes the net present value of a projects cash-flows to exactly equal zero, and therefore a project with a required rate of return higher than the IRR would mean that the cash-flows have to be discounted by a higher rate, which would yield a negative net present value. Such a project would reduce shareholder wealth and should be rejected. The other 3 statements are correct.

3 0
4 years ago
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