Answer:
It’s when you convince people to buy a product, or service. Marketing is used in this.
Explanation:
Answer: Costs of items used up this period but paid for next period
Explanation:
Period Expenses for the period are transactions that should be expensed because they were used in the current period.
Therefore if a period cost is not used in the period, it is not considered a period cost even if the company pays for it in the current period which also means that if a period cost for the period is not paid in the current period but in the next one, it is still a period cost for the current period.
From the above therefore, the period cost is the cost of items used up in this period but paid for in the next one.
The land purchased might look like the obvious choice but it is not because Assets are capitalised and not expensed.
Question:
A potato chip manufacturer purchases a potato farm. Which of the following regarding its strategy is true?
A. The manufacturer has effectively used vertical integration to increase its bargaining position and reduce transaction costs.
B. The manufacturer has enhanced utilisation by allowing depreciation and other fixed costs to be spread over a larger unit volume.
C. The manufacturer has sacrificed quality by using a lower-cost input.
D. The manufacturer has efficiently capitalised on the experience and learning-curve effects within the company.
E. The manufacturer has effectively reduced its operating costs by outsourcing its activities.
Answer:
A. the Manufacturer has effectively used vertical integration to increase it's bargaining position and reduce transaction costs.
Explanation:
Vertical integration is a business strategy whereby a business acquires ownership or controls its suppliers, distributors, or retail locations to control its value or supply chain.
It may also be said that vertical integration has to do with the purchase of a part of all of the production or sales process that was previously outsourced, to have it done in-house.
An example of companies who have done this are:
1. Apple
2. Netflix
3. Comcast (Which acquired NBC)
Businesses can integrate by
- purchasing their suppliers to reduce the costs of manufacturing or
- controlling the distribution process that is, owning and controlling the warehousing and delivery of their products etc.
Answer:
interest portion of fifth payment = $66.89 ≈ $67
Explanation:
effective interest rate = 5% yearly
first payment = $200
second payment = $210
third payment = $220
fourth payment = $230
fifth payment = $240
sixth payment = $250
seventh payment = $260
eighth payment = $270
ninth payment = $280
tenth = $290
using a financial calculator, I determined the present value (principal) of the loan = $1,860.87
then I prepared an amortization schedule:
interest portion of fifth payment = $66.89 ≈ $67
To solve this question, we need to do a substitution formula on both equations
Burger + Fries = $ 2.20
Burger - Fries = $ 2.00
________________________ -
2 Fries = $ 0.20
Fries = $ 0.1
