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3 years ago

In the short run, increasing marginal costs always imply increasing average total costs. a. Trueb. False

Business

1 answer:

Vinvika [58]3 years ago

8 0

Answer:

The answer is A. True.

Explanation:

Marginal Cost is the cost of producing one more product unit.

Marginal Cost = Average Total Cost / Average Goods Output

Therefore, in the short run, an increase in Marginal Cost implies a similar increase in Average Total Cost.

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Identify 4 economic resources from the attached picture.

faltersainse [42]

Answer:

gold,crops, crisis, poverty

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2 years ago

Read 2 more answers

An important rule of budgeting is:

son4ous [18]

Answer:

A. Those responsible for complying with budgets must participate in budget preparation.

Explanation:

An important rule of budgeting is those responsible for complying with budgets must participate in budget preparation.

4 0

3 years ago

Feldspar Inc. is considering the capital structure for a new division. Management has been given the following cost information:

34kurt

Answer:

Option 4

Explanation:

In this question ,we have to compute the WACC which is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of common stock) × (cost of common stock)

For Option 1, it would be

= (0.3 × 10%) × ( 1 - 40%) + (0.7 × 12.5%)

= 1.8% + 8.75%

= 10.55%

For Option 2, it would be

= (0.4 × 10.5%) × ( 1 - 40%) + (0.6 × 13%)

= 2.52% + 7.8%

= 10.32%

For Option 3, it would be

= (0.5 × 11%) × ( 1 - 40%) + (0.5 × 13.5%)

= 3.3% + 6.75%

= 10.05%

For Option 4, it would be

= (0.6 × 11.7%) × ( 1 - 40%) + (0.4 × 14.2%)

= 4.212% + 5.68%

= 9.89%

For Option 5, it would be

= (0.7 × 13%) × ( 1 - 40%) + (0.3 × 15.5%)

= 5.46% + 4.65%

= 10.11%

So based on this, the management should accept option 4 as it derives the best debt asset ratio

The weightage of equity would be come

= 1 - weightage of debt

8 0

3 years ago

On April 1, 2017, Planet Services received $8,000 in advance of performing the services from a customer for three months of se

mestny [16]

Answer:

The correct answer is B

Explanation:

The journal entry which is to be recorded for the service revenue at the end of May is as follows:

Unearned Revenue A/c..............Dr $5,333

Service RevenueA/c...........Cr $5,333.

Working Note:

Revenue = Total amount × Number of months / Total months

where

Amount is $8,000

Number of months means at the end of May which is a 2nd month

Total months is 3 months (April, May and June)

= $8,000 × 2 / 3

= $5,333

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3 years ago

Vertical communication occurs when scott, divisional manager of production, discusses business issues with susan, divisional man

liberstina [14]

<span>False. Communication up and down the corporate hierarchy is often called vertical communication. Communication among employees at the same level in the hierarchy, or sideways, is called horizontal communication.</span>

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4 years ago