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3 years ago

Which of the following is an economic cost of instability?

1 answer:

7 0

An economic cost of instability would be increase in unemployment - a.

Having a very volatile (instable) market can create problems which make it more unsure how people would be able to keep a job for a longer time-frame. When a market is volatile, this essentially means that a lot of changes can happen very fast - making it unstable for people and their jobs.

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Maxtor Technology incurred the following costs during the year related to the creation of a new type of personal computer monito

Radda [10]

Answer:

Research and development expense is $679,000.

Explanation:

Creation of a new type of personal computer monitor is an internally generated intangible asset.

The Costs directly incurred in developing an internally generated intangible asset are all expensed until the intangible asset is technically physiable for operation.

Research and Development costs are thus expensed.

<u>Calculation of Research and Development Cost</u>

Salaries $240,000

Depreciation on R&D facilities and equipment $135,000

Utilities and other direct costs incurred for the R&D facilities $ 68,000

Patent filing and related legal costs $24,000

Payment to another company for development work $130,000

Costs of adapting the new monitor $82,000

Total $679,000

Conclusion :

Research and development expense is $679,000.

3 0

2 years ago

He schedule below represents the willingness of a typical consumer to pay for wine in a year. Suppose there are 10,000 identical

natta225 [31]

Answer:

a. $30,000.

Explanation:

Willingness to pay is the highest amount a consumer would be willing to pay for a good or service. In this example, the willingness to pay is $50.

Consumer surplus is the difference between price of a product and the willingness to pay.

To calculate the total consumer surplus , refer to the attached image, the consumer surplus is the shaded triangle.

The total consumer surplus = 1/2 base × (height)

The height is the difference between the willingness to pay and the price of the wine = $50 -$30 =$20

The base is the total quantity purchases at $30 =

1/2 × 3 × ($20) = $30

There are 10,000 consumers, therefore consumer surplus =$30,000

I hope my answer helps you.

7 0

3 years ago

Fey Corporation uses the equity method of accounting for its investment in a 30%-owned investee that earned $56,000 and paid $18

tatiyna

Answer:

The answer is : C. Investment overstated; retained earnings overstated

Explanation:

Under the equity method of accounting, Fey Corporation should record the correct entry as below:

Dr Equity Investment 16,800

Cr Equity Income 16,800

Dr Cash 5,400

Cr Equity Investment 5,400

As a result, Investment account has been overstated by $5,400 while Dividend Revenue account has been overstated by $5,400. The overstating in Dividend Revenue will subsequently result to the overstating in Retained Earnings account through closing entry.

So, C. Investment overstated; retained earnings overstated is the correct answer.

6 0

3 years ago

Which of the following utilizes a sales technique in which a company representative known as a consultant, distributor, or advi

likoan [24]

Answer:

E. Party plan system

Explanation:

Based on the information provided within the question it can be said that the term being described is called a Party Plan System. This is a marketing approach where a company disguises an marketing tactic within an social event where they sell their product directly and in person. Since the customer base is already there.

8 0

2 years ago

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows: Year

lina2011 [118]

Answer:

15%

Explanation:

The computation of the internal rate of return is shown below:

Given that

Year Cash Flow

0 -$27,100

1 $11,100

2 $14,100

3 $10,100

The formula to compute IRR is

= IRR()

After applying the above formula, the internal rate of return is 15%

4 0

3 years ago