Answer:
d. All of the above are true
Explanation:
External costs happen if during production or consumption of a good or a service there is a negative effect on another party. The existence of this can bring about market failure. In the presence of externalities social benefit costs are a combination of private costs and also external benefits of production.
All of the options a, n and c are true so d is the answer here.
Answer and Explanation:
The computation is shown below:
But before that we need to do the following calculations which are shown below:
The Contribution per unit of faucet is
= $75 - $15
= $60
And, the Contribution per unit of pitcher filter is
= $100 - $30
= $70
Now Contribution per unit in present sales mix is
= [($60 × 2) + ($70 × 3)] ÷ 5
= ($120 + $210) ÷ 5
= $66 per unit
And
The Fixed cost is
= $1,000,000 + $200,000
= $1,200,000
Now
Break even units is
= $1,200,000 ÷ $66 per unit
= 18,181.81 units
For faucet, it is
= (18,181.81 × 2) ÷ 5
= 7,272.72 units
For pitcher filter, it is
= (18,181.81 × 3) ÷ 5
= 10,909.086 units
Answer:
1a. For manufacturing company– Buying a local manufacturing company
b. For a financial services company– Partnership
c. A company like Coke or Pepsi– Greenfield Investments
Explanation:
1a. Buying a local company saves valuable resources for the foreign manufacturing, and it allows for quick market knowledge since this company has already been in operations for a long time.
b. A partnership would be best for a financial services company, this would involve a smooth transition into new markets without having to spend much on physical structures as the domestic company is already having necessary infrastructures in place.
c. Coke and Pepsi would preferably choose to use the Greenfield investment strategy by building a new plant from the ground up because of its established quality standards as well as trade mark and intellectual property protection.
2. A technology-centric firm would benefit most by buying a Company because of the already available market share as well as benefiting from reduced government regulations.
3. If one is operating a start-up or smaller firm of course cost would be a major consideration, therefore selling out License to foreign companies may be effective. This would transfer the rights to use a product or service in a different market geography.
4. It provides a good foresight into the requirements needed to enter foreign markets.
A cutting board must be set aside and shown to a manager if the person who used it cut up something such as raw meat and then used the board to cut up fruit. This would be a form of cross-contamination and could cause many problems. This is a way that bacteria could be passed from one dish to another. This could cause a customer to either have an allergic reaction or to become violently ill.
Answer:
Debit : Allowance for doubtful debts - $62,000
Explanation:
An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. This can be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.
An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.
The question states that the company had recorded $62,000 as a bad debts expense in its income statement. In order to do this, the company would have first made an estimate of bad debts known as the allowance for doubtful debts where:
Debit : Bad Debts
Credit : Allowance for doubtful debts
When the amount is officially declared uncollectible as in this case, the allowance for doubtful debts account will be debited with $62,00 and the accounts receivables account will be credited with $62,000 meaning that the money would not be expected to be received from that debtor anymore.
