Does GDP tell the right story ? Essay

Goods available for sale are $350,000, beginning inventory is $24,000, ending inventory is $32,000 and cost of goods sold is $27

Lera25 [3.4K]

B is the answer to your question

5 0

3 years ago

A company known for its high-quality watches and clocks introduces a line of well-designed pocket watches to increase its market

timama [110]

Answer: Market Cannibalization

Explanation: The pocket watch line is having the market cannibalization which is also known as the corporate cannibalism effect on the company's wrist watches.

Market Cannibalization refers to a reduction in sales of a particular old product which is usually as a result of a company's introduction of a new product.

The introduction of the new product displaces the older products mostly because both products have thesame customer base and also perform similar functions.

It is essential to note that despite the increase in sales of the new product, the company's market share experiences no increase but a decrease which is due to the sales loss of the older product.

8 0

3 years ago

Harold Manufacturing produces denim clothing. This year, it produced 5,260 denim jackets at a manufacturing cost of $42 each. Th

Mice21 [21]

Answer:

Incremental net income = $42,080

Explanation:

Note the the income would be that which result from the alternative action with the highest net income Note that the manufacturing cost of $12 per unit is not relevant for the purpose of this decision and hence would not form part of the analysis

$

Option one: Outright sale

Sales from disposal = 5,260× 8 42,080

Option 2: disassembling

Revenue $12 × 5,260 = 63120

Cost of disassembling ( 31,800)

Net income 31,320

Option 3: Reworking

Sales revenue ($45.00× 3,050) 137250

Cost of reworking (102,200)

Net income 35,050

The outright option gives the highest net income hence should be considered.

Incremental net income = $42,080

7 0

3 years ago

Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis

mylen [45]

Answer:

Compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.

Explanation:

If the tables are sold now, they would cost $305000. If an additional $315000 is spent to refinish the table, the table would the be sold for $605000, that means there would be an additional revenue of $300000 ($605000 - $305000). The company are already operating at a loss as a result of improperly finishing the table. In deciding whether to rework the tables or sell them, the company should compare the $315,000 cost to refinish the tables with the incremental revenue of $300,000 if the tables are refinished.

6 0

4 years ago

According to the acquisition method of accounting for business combinations, costs paid to attorneys and accountants for service

oee [108]

Answer:

"charged to profit or loss"

Explanation:

According to the acquisition method, acquisition-related (transaction) costs are costs the acquirer incurs to effect a business combination. For example, the cost of the advisory, legal, accounting, valuation or consultancy fees, must not be included in the cost of the acquisition. These costs must be treated as an expense as incurred and written off to profit or loss.

The amount of transaction costs associated with an acquisition and written off during the period to profit or loss must be disclosed in a note to the financial statements.

So based on the above discussion the answer to the question shall be "charged to profit or loss"

5 0

4 years ago