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3 years ago

The difference between zero accounting profit and zero economic profit is that

1 answer:

3 0

In zero accounting profit takes opportunity costs into account, whereas zero economic profit does not. If a firm has zero economic profits, they are able to have positive accounting profits. A zero accounting profit means that the revenue that is made is only covering explicit costs. A zero economic profit is normal when the total revenue and expenses equal zero.

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Western Wholesale Foods incurs the following expenditures during the current fiscal year. How should Wesernaunt for each of thes

levacccp [35]

Answer and Explanation:

The classification is as follows

1. Since it is a salary for the repair technicians so it would be an expense that is incurred

2. The remodeling should be capitalized and depreciated over their useful life of an asset

3, Since there is an annual maintenance cost, so it would be an expense that is incurred

4. The improvement of the line of production should be capitalized and depreciated over their useful life of an asset

5. Addition of a sprinkler system should be capitalized and depreciated over their useful life of an asset

8 0

3 years ago

What are the three reasons that companies import?

tankabanditka [31]

Answer: To meet customer demand, to take advantage of low priced goods or to purchase raw materials.

Explanation:

Import refers to the quantities of goods that are bought from other countries. Many companies trade to meet domestic customer's demand or to take advantage of lower priced product or to purchase raw materials which are not available domestically in order to produce finished goods domestically.

4 0

3 years ago

Lazario Motor Car Company produces some of the most luxurious and expensive cars in the world. The company typically authorizes

Nikitich [7]

Answer:

D) exclusive

Explanation:

An exclusive distribution strategy is used when only one product retailer is allowed in a given geographic area. Generally the manufacturer (or supplier) and the retailer sign an agreement where the retailer is given exclusive rights to sell the product within a given geographic area.

This type of distribution strategy is used by manufacturers of all types of products, ranging from high end luxurious products to convenience goods. For example, Coca Cola uses exclusive distribution rights on foreign countries, where they have only one producer and distributor per country.

6 0

3 years ago

Which one of the following statements is true? Debt instruments offer residual claims to future cash payouts. Bonds with call pr

Nikitich [7]

Answer:

The answer is: None of the options are correct.

Explanation:

Debt instruments don´t offer residual claims to future cash payouts.

Bonds with call provisions don´t have lower coupon rates than otherwise identical bonds. Generally if the bond issuer decides to redeem the bond earlier they will pay the bondholder a premium over their face value.

Bondholders don´t enjoy a direct voice in company decisions. They have the right to receive financial statements of the company and in case of bankruptcy they hold first rights to the distribution of assets.

Bonds are low risk investments that don´t do well in inflationary periods. The inflation rate adjusts the real interest rates a bond will earn, sometimes turning them negative real interest rates.

Preferred shareholders are not the first investors to be repaid in bankruptcy liquidation. Bondholders are the first investors to be repaid in bankruptcy liquidation.

7 0

4 years ago

LO 3.4If the sales mix in a multi-product environment shifts to a higher volume in low contribution margin products, the break-e

kompoz [17]

Answer:

Option 1 is wrong because in the case of multi-product, breakeven is weighted average which means the sales price will weighted average of sale prices of all the multi-products in the sales mix. If we change the weightings the weighted average costs and selling prices changes and so the contribution changes.

Option 2 is also sligthly wrong because Contribution margin per composite unit decreases if the volume of low contribution margin products increases in the sales mix. This means:

Breakeven Point=Fixed Cost/ Contribution per unit.........equartion 1

If the contribution per unit has been decreased the breakeven will rise.

Its impact depends upon the portfolio of products company is managing. It means it increases breakeven with high effects if the products in sales mix 2 to 3.

Option 3 is 100% right because equation 1 is

Breakeven Point=Fixed Cost/ Contribution per unit

Which says

If the contribution per unit has been decreased the breakeven will rise.

Option 4 is absolutely wrong because if we shift to higher volume in low contribution margin products, Contribution margin per composite unit decreases if the volume of low contribution margin products increases

which means Weighted average contribution has been decreased and as a result breakeven point according to equation 1 has been incresed.

5 0

3 years ago