This investment is an example of a managerial decision. This process is done to aid the executives to be able to make the best possible decision that is needed by the business at that certain point of time. There are five steps that is involved in a managerial decision making. First would be establishing what is the main objective of the business. Then, like any other decision process, defining the problem and its the nature at that certain time is next. The third step would be listing all possible solutions present. Then, evaluating each possible solution listed. Listing all pros and cons would be recommended. In this step, we look at which would be the most favorable solution. The last step would be the implementation of the solution chosen.
Answer:
1.Georgeland has an absolute but not a comparative advantage in producing clothing.
Explanation:
Georgeland has an absolute advantange, because with the factors of production that it has available (the question does not specify the amount), it can produce either more food, or more clothing than Alland.
But Georgeland does not have comparative advantage in producing clothing, because the cost of opportunity of doing so is higher than Alland's, as can be seen in this comparison:
If Alland produces 16 units of clothing, it gives up on 32 units of food.
If Georgeland produces 18 units of clothing, it gives up on 36 units of food.
Answer: an offset against ordinary income of $3,000 and a NSTCL carryforward of $2,400
Explanation:
Feom the question, we are told that in the current year, Norris, an individual, has $59,000 of ordinary income, a net short-term Capital loss (NSTCL) of $9,100 and a net long-term capital gain (NLTCG) of $3,700.
From his capital gains and losses, Norris reports an an offset against ordinary income of $3,000 and the a net short-term Capital loss (NSTCL) balance carryforward will be the difference between the net short-term Capital loss (NSTCL) of $9,100 and a net long-term capital gain (NLTCG) of $3,700 and the offset against ordinary income. This will be:
= ($9100 - $3700) - $3000
= $5400 - $3000
= $2400
Answer:
Sell their products at lower net prices abroad than in the domestic market
Explanation:
Variable costing is a product costing method where only the variable manufacturing cost like the cost of direct materials ,labor and the variable manufacturing overhead are factored into the cost of production. This does not consider a complete cost like the absorption method of costing and as a result , the final overall cost is lower,
Using variable cost males it possible to sell products at lower net prices abroad compared to the domestics market as the tax laws of various country requires absorption method , hence it is not captures using variable costing.
Answer:
An employer is required to accrue a liability for employee's right to receive compensation for future absences when certain conditions are met and as a result it makes it a requirement for a liability to be accrued for vacation benefits that employees have earned but have not yet taken.
In the given case, employer offers each of its 50 employees 20 vacation days per year. As of January, each employee has earned 1.5 days. The Vacation days which are unused at the end of the year may be carried forward to the next year. There is no anticipation of any forfeitures.
Therefore employer must record a liability for employees vacation days earned so far for presenting true and fair view of the financial statements.
