The risk refers to the danger of changes in buying power during times of rising or falling prices is known as inflation.
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What is a risk?</h3>
Risk refers to the uncertainty or probability of an accidental event that will affect the decision-making of an individual or organization. In business the higher the risk, the higher the profit is achieved.
Inflation is defined as the ratio at which prices rise over time. Inflation is usually defined as a wide measure of price increases or increases in the cost of living in a place affecting its citizens.
Inflation diminishes the purchasing power of individuals which leads to high risk for investors who paid a fixed rate of interest on the investment. Most concerned about inflation-reducing returns are those individuals who invested in cash equivalents.
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Answer: (a) $295 million
(b) $326 million
Explanation:
Given that,
Sales = $900 million during 2016
Cash = $871 million
Cost of goods sold = $280 million
Expenses for the year totaled = $325 million
Paid for Inventory = $375 million
Paid for everything else = $285 million
Beginning cash = $115 million
(a) Net Income = Sales - Cost of goods sold - Expenses for the year totaled
= $900 - $280 - $325
= $295 million
(b) Carter's cash balance at the end of 2016:
= Cash + Beginning cash - Paid for Inventory - Paid for everything else
= $871 + $115 - $375 - $285
= $326 million
Answer:
c) Inventory (beginning) and Purchases.
Explanation:
When you use perpetual inventory system, you must record cost of goods sold every time you make a sale. But when you use a periodic inventory system, you close cost of goods sold with merchandise inventory account at the end of the period.
beginning inventory + purchases - ending inventory = cost of goods sold
Answer:
market-oriented economy is the correct answer.
Explanation:
If the average cost of producing 9 sweaters is $6. 50 and the marginal cost of producing the tenth sweater is $6. 25, the average cost of producing 10 sweaters will be less than $6.50
If marginal cost is less than average cost, average cost will decrease and therefore be less than $6.50. In this case, average cost of producing 10 sweaters is ($6.50 x 9 + $6.25)/10 = $6.48.
The marginal cost is the variation in total cost brought on by an increase in output, or the cost of producing more. In certain contexts, it might refer to an increase in output of one unit, while in others, it can relate to the rate of change of total cost as output grows by a modest amount.
The total cost is expressed in dollars, whereas the marginal cost is expressed in dollars per unit. The marginal cost is the slope of the total cost, or the rate at which it increases with production.
Marginal cost is the distinction between average cost, which is the total cost divided by the number of units produced.
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