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3 years ago

LO 2.2Which of the following statements is true regarding average fixed costs?

Business

1 answer:

KengaRu [80]3 years ago

4 0

Answer:

The statements is true regarding average fixed costs:

Average fixed costs per unit fall as the level of activity rises.

Explanation:

Average fixed costs per unit can be determined by using the following formula:

Average fixed costs per unit = Fixed costs/ number of units are produced

In the company, Fixed costs do not depend on the level of activity (Fixed costs do not change).

The number of units are produced increase if level of activity rises. Therefore, Average fixed costs per unit fall as the level of activity rises

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Scott Bestor is an accountant for Westfield Company. Early this year, Scott made a highly favorable projection of sales and prof

kozerog [31]

Answer:

Scott Bestor should confess his honest mistake.

Explanation:

Two of most important attributes that are required from an accountant are integrity and trustworthiness.

Refusing to tell the management his honest mistake in order not jeopardize his possible promotion is a short-run gain to him. But confessing his honest mistake has a long run gain as this will preserve his integrity and trustworthiness forever. In addition, it is unethical and a sign of disloyalty for an accountant not to disclose all the information relevant to the company based on his position as an account.

Therefore, Scott Bestor should confess his honest mistake rather than sacrificing his integrity and trustworthiness as well as the ethic of his profession for a short-term gain (i.e. promotion).

4 0

3 years ago

________ leadership focuses on clarifying employees’ roles and task requirements and providing rewards and punishments contingen

Sauron [17]

Transactional leadership focuses on clarifying employees’ roles and task requirements and providing rewards and punishments contingent on performance.

Where is transactional leadership used?

Middle management levels in major firms are the principal users of transactional leadership. According to this leadership theory, accomplishing agreed-upon responsibilities successfully results in monetary remuneration, job security, or promotions, as well as intangible benefits like praise and recognition.

Why is transactional leadership important?

Transactional leaders are really clear. Employees are fully aware of what their boss expects of them. They feel successful in achieving their clearly stated goals and objectives as a result. When collective performance matters, this results in effective leadership.

Learn more about transactional leadership: brainly.com/question/11210892

#SPJ4

4 0

2 years ago

Sheridan Company uses the perpetual inventory and the gross method. On March 1, it purchased $83000 of inventory, terms 2/10, n/

Gemiola [76]

Answer:

b. inventory for $1516.

Explanation:

Term 2/10, n/30 means there is a discount of 2% is available on payment of due amount within discount period of 10 days after sale and net credit period of 30 days.

Purchase value = $83,000

Purchases return = $7,200

Amount Due = $83,000 - $7,200 = $75,800

As the $75,800 is paid within discount period, so discount will be given to customer

Discount = $75,800 x 2% = $1,516

Payment Made = $75,800 - $1,516 = $74,284

Gross method does not record the discount value it recognise the inventory at its gross amount and discount is adjusted in the inventory account after that.

4 0

3 years ago

"1. AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $.50 per unit and a selling price of $1

pishuonlain [190]

Answer:

No.

Explanation:

Current profit of AudioCables, Inc without buying new equipment

Current Profit = Current sales volume * Selling price per unit - Fixed cost - Current sales volume * Variable cost per unit

= 30,000 * $1.00 - $14,000 - 30,000 * $0.50

= $30,000 - $14,000 - $15,000

= $1,000

So, the current profit of AudioCables, Inc., without buying new equipment is $1,000

Proposed profit of AudioCables, Inc after buying new equipment

Proposed Profit = Proposed sales volume * Selling price per unit – Fixed cost after buying new equipment - Proposed sales volume * Variable cost per unit after buying new equipment

= 50,000 * $1.00 - $20,000 – 50,000 * $0.60

= $50,000 - $20,000 - $30,000

= $0

So, the proposed profit of AudioCables, Inc., after buying new equipment is $0

Conclusion: As the profit of AudioCables, Inc., will reduce after buying new equipment from $1,000 to $0, therefore AudioCables should not buy the new equipment.

5 0

3 years ago

Today, you are purchasing a 15-year, 6.5 percent annuity at a cost of $36,500. The annuity will pay annual payments starting one

Licemer1 [7]

Answer:

Periodic payment = $3,881.88 (Approx).

Explanation:

Given:

Present value of annuity = $36,500

Rate = 6.5% = 0.065

Number of payment = 15

Computation:

$Present\ value\ of\ annuity = periodic\ payment[\frac{1-(1+r)^{-n}}{r} ]$

$36,500 = periodic\ payment[\frac{1-(1+0.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-(1.065)^{-15}}{0.065} ]\\\\36,500 = periodic\ payment[\frac{1-0.388826524}{0.065} ]\\\\36,500 = periodic\ payment[\frac{0.611173476}{0.065} ]\\\\36,500 = periodic\ payment[9.40266886 ]\\\\periodic\ payment = 3,881.87658$

Periodic payment = $3,881.88 (Approx).

4 0

3 years ago