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3 years ago

As a component of real estate value, the principle of substitution states that

Business

1 answer:

k0ka [10]3 years ago

3 0

Answer:

a. If two similar properties are for sale, a buyer will purchase the cheaper of the two.

Explanation:

The principle of substitution justifies the idea that the maximum value of a property will be set by the selling price of an equally valuable and desirable substitute property. In this case of property sale, if an area has two similar houses and one is being sold for $912,000 and the other is priced at $105,000, buyers will most likely go for the cheaper one. There is no reason to pay more money if they will be getting a similar property at low cost.

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Period costs are a.classified as direct labor, direct material, or factory overhead b.not involved in the production process c.f

goldfiish [28.3K]

Answer:

Not involved In the production process

Eg. Selling expenses or advertising expenses

3 0

3 years ago

Colina Production Company uses a standard costing system. The following information pertains to the current year. Direct labor h

mash [69]

Answer:

variable overhead efficiency variance= $562.5 unfavorable

Explanation:

Giving the following information:

The actual production of 5,500 units

Actual direct labor hours= 11,250

Standard direct labor for 5,500 units:

Standard hours allowed 11,000 hours

First, we need to determine the variable overhead rate:

Variable overhead rate= 22,500/10,000= $2.25 per direct labor hour

Now, using the following formula we can determine the variable overhead efficiency variance:

variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

variable overhead efficiency variance= (11,000 - 11,250)*2.25

variable overhead efficiency variance= $562.5 unfavorable

3 0

3 years ago

Duck Company produces a product which sells for $40. Variable manufacturing costs are $18 per unit. Fixed manufacturing costs ar

andrey2020 [161]

Answer:

Contribution margin = $16

Explanation:

Contribution is the difference between the selling price and the variable cost.

Contribution margin = (Sales - variable cost )

Variable cost = Variable manufacturing + Variable selling cost

Variable cost = 18 + (15%× 40) = 24

Contribution margin = 40 - 24 = $16

Contribution margin = $16

3 0

3 years ago

Severance pay plans grant employees weekly benefits in addition to state unemployment compensation. True

Yanka [14]

Answer:

False

Explanation:

In simple words, Severance pay can be understood as a salary and/or incentives given to an individual by a company after the job is over. In order to help an individual obtain a new job, severance arrangements can include additional rewards, such as life care and observer ship support.

Thus, the weekly benefits are not included in this and the above statement is incorrect.

4 0

3 years ago

Clothing Emporium was organized on January 1, 2021. The firm was authorized to issue 140,000 shares of $8 par value common stock

natka813 [3]

Answer:

$728,000

Explanation:

Paid in capital can be described as the payments ac company received in exchange for its stock from investors.

From the question, the total paid in capital can be calculated as follows:

Receipt for 42,000 shares at $10 per share = 42,000 * 10 = $420,000

Receipt for 28,000 shares at $11 per share = 28,000 * 11 = $308,000

By adding the two above together and have:

Total paid-in capital = $420,000 + $308,000 = $728,000.

Therefore, total paid-in capital at the end of 2021 is $728,000.

3 0

4 years ago