Answer:
Inventory cycle = <u>Inventory </u> x 365 days
Cost of goods sold
Inventory cycle = <u>$75,000</u> x 365 days
$360,000
= 76.04 days
Receivable days = <u>Accounts receivable</u> x 365 days
Sales
= <u>$160,000</u> x 365 days
$600,000
= 97.33 days
Payable days = <u>Accounts payable</u> x 365 days
Cost of sales
= <u>$25,000 </u> x 365 days
$360,000
= 25.35 days
Cash conversion cycle
= Inventory cycle + Receivable days - Payable days
= 76.04 days + 97.33 days - 25.35 days
= 148.0 days
Explanation:
Cash conversion cycle is calculated as raw inventory cycle plus receivable days minus payable days. Inventory cycle is the ratio of inventory to cost of goods sold multiplied by number of days in a year. Receivable days refer to the ratio of accounts receivable to sales multiplied by number of days in a year. Payable day is the ratio of accounts payable to cost of goods sold multiplied by number of days in a year.
Answer:
The correct answer is letter "D": benefit exceeds its marginal cost.
Explanation:
The marginal cost represents the cost of acquiring one more unit of a given good or service. It allows recognizing what is the optimum level of consumption of a given product. If the benefit obtained from acquiring that additional good or service is higher than its marginal cost, then we could say it is worth it to get it.
Segmented pricing is a situation, when seller or a company establishes different prices (two or more), for one the same product.
Price segmentation, to put it simply, is the process of differentiating pricing based on willingness to pay. It is motivated by the reality that customers' price sensitivity might differ greatly from one another, from one product to another, and throughout all the environments in which they use your product.
With price segmentation, you may set different prices for various consumer types according to their willingness and ability to pay. Price segmentation allows you to profit more from consumers who spend the most and less from those who pay the least.
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Costs that are shared by multiple cost objects in a company are known as common costs.
<h3>What is cost?</h3>
Cost involves expenses that are incurred either in production or purchase of goods and services. Common cost consist of all cots incurred, it is not attached to any specific cost object, such as a product or process.
When cost is attached to particular cost it can be given a name.
Example is overhead cost of production, direct cost and indirect costs.
Therefore, Costs that are shared by multiple cost objects in a company are known as common costs.
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