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3 years ago

Reasons why countries avoid specialization

Business

1 answer:

Romashka [77]3 years ago

4 0

Answer:

Countries specialize in order to increase their trade. Imagine a country that has specialized in rubber production and suddenly other more efficient synthetic products have replaced rubber. That means that the demand of rubber has fallen. This would create the country to face labor unemployment, lack of trade for rubber, a long period of stagnant growth indirectly effecting the economy adversely.

Therefore countries prefer to go along with trade and avoid specialization so as to avoid period of stagnant growth.

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Economic Order Quantity computes:

Mamont248 [21]

Answer:

D: Optimum Order size

Explanation:

Economic Order Quantity (EOQ) is a formula applied in logistic and supply chain management to calculate a business's ideal order size. As the name suggests, the order EOQ provides an order quantity that makes economic sense.

Economies of scale suggest that a bigger order size is better because the business will save transport costs. However, ordering in large quantities increases the cost of holding stock. The economic order quantity strikes a balance between these two important factors.

7 0

3 years ago

A firm wishes to maintain an internal growth rate of 8 percent and a dividend payout ratio of 36 percent. The current profit mar

Anon25 [30]

Answer:

2.16 times

Explanation:

Given that,

Internal growth rate = 8 percent

Dividend payout ratio = 36 percent

Current profit margin = 5.8 percent

Therefore,

Internal Growth Rate = (1 - Dividend Payout Ratio) × ROA

8% = (1 - 36%) × ROA

0.08 = 0.64 × ROA

ROA = 0.08 ÷ 0.64

= 0.125

ROA = Profit Margin × Total Asset Turnover

0.125 = 0.058 × Total Asset Turnover

Total Asset Turnover = 0.125 ÷ 0.058

= 2.16 times

6 0

3 years ago

The following static budget is provided: Units 27,000 Units Sales $ 270,000 Less variable costs: Manufacturing costs $ 94,500 Se

valentinak56 [21]

Answer:

$62,750

Explanation:

The computation of budgeted net income is shown below:-

Budgeted income = (Contribution Margin × Units produced and sold ÷ Units) - Manufacturing costs - Selling and administrative costs

= ($118,800 × 25,000 ÷ 27,000) - $29,700 - $17,550

= $110,000 - $29,700 - $17,550

= $62,750

Therefore for computing the Budgeted income we simply applied the above formula.

4 0

3 years ago

Read 2 more answers

Two methods of accounting for uncollectible accounts are the

aliya0001 [1]

Answer:

Correct option is (d)

Explanation:

An account is termed uncollectible if they are not expected to be paid. There are two methods to write off these accounts:

1. Direct write off method: In this, the account recognized at uncollectible is directly charged to profit and loss account as an expense.

2. Allowance method: Under this method, a provision for doubtful debt is created where anticipated bad debts are charged. When an account needs to be written off, doubtful debt is debited and accounts receivables are credited.

3 0

3 years ago

Read 2 more answers

Aha! Inc. had inventory of $500,000 at the beginning of 2017. The company purchased $2,000,000 less purchase discount of 10%. Th

dybincka [34]

Answer:

$2200000

Explanation:

Given: Beginning inventory= $500000.

Inventory purchased= $2000000 with discount of 10%.

Freight cost= $200000.

Ending Inventory= $300000.