Answer: Financial disadvantage of -$863,000
Explanation:
If they made the 87 thousand units themselves, they would incur a cost of:
= 87,000 * (Direct labor + Direct materials + Variable manufacturing overhead) + Traceable fixed manufacturing overhead
= 87,000 * (23 + 24 + 22) + (23 * 110,000)
= 87,000 * 69 + 2,530,000
= $8,533,000
<em>Traceable fixed costs are based on the total capacity of 110,000 units being produced and so will not change. </em>
If they buy from the supplier, the cost would be:
= 108 * 87,000
= $9,396,000
Financial advantage (disadvantage) = 8,533,000 - 9,396,000
= -$863,000
Answer:
$1,125,000
Explanation:
Given;
Gain from asset disposal = $225,000
Book value of asset disposed = $900,000
Therefore,
Amount of cash received from the sale = $900,000 + $225,000
= $1,125,000
This represents an inflow of cash and will be represented by a positive value in the statement of cash flows. The total amount reported in the cash flows from investing activities section of the statement of cash flows is $1,125,000
Answer:
All answers are correct except Money Supply
Explanation:
Fiscal policy affects aggregate demand through government spending and taxes. Government may increase taxes to increase revenue or discourage the consumption of a product. On the flipside, they may reduce taxes to stimulate spending, redistribute income, increase aggregate demand among other objectives.
Money supply is a monetary policy and it is used by the central bank to achieve certain objectives (reduce inflation, stimulate growth, increase demand, etc.)
Government spending is a fiscal policy that government uses to achieve a set of objectives (i.e. to supply goods and services that are not provided by the market or private sector – construct bridges, provide health facilities, social programmes for the poor among others).
Taxes – Tax is a fiscal policy tool used by the government to generate revenue, encourage or discourage the consumption of certain products or affect aggregate demand through income redistribution.
Trade policy could be in the form taxes (i.e. tariffs, import duties, custom duties among others). Trade policy is a fiscal policy as government can use it to control aggregate demand by placing embargo on the importation of certain products to reduce the demand of such products in the local economy.
Answer:
inbound logistics.
Explanation:
Supply chain management can be defined as the effective and efficient management of the flow of goods and services as well as all of the production processes involved in the transformation of raw materials into finished products that meet the insatiable want and need of the consumers. Generally, the supply chain management involves all the activities associated with planning, execution and supply of finished goods and services to the consumers.
The fundamental principle of supply chain management is the complete collaboration between multiple firms. These multiple firms include a company that is saddled with the responsibility of manufacturing producer), a wholesaler, and a retailer who typically sells the products to the customers or consumers.
Basically, these three (3) firms or individuals are required to collaborate with each other so as to meet the needs of the customers in a timely manner or fashion and at a fair price too.
In this scenario, Dave creates and sells DVDs of his magic tricks.
Lately, Dave has been having some trouble getting his DVDs produced in a timely manner. Thus, of the five (5) primary activities in the value chain, this problem of not producing goods (DVDs) as at when needed by the viewers (end users) is most likely to occur in inbound logistics.
An inbound logistics can be defined as a supply process which relates with receiving, storing or warehousing of raw materials and the distribution of inventory internally.
