True or false?<br><br> Profit is found by subtracting operating costs from total revenue.

Merck, a pharmaceutical company, has taken thousands of drugs through the federal approval process and so can do it more cost ef

melomori [17]

Answer:

learning effects

Explanation:

Learning effects: In economics, the term "learning effects" is described as the process through which specific education is considered as increasing productivity and therefore results in producing higher wages. It gives an insight to the company to develop some competitive advantage by decreasing some of the production costs. However, the employees are focused on working more efficiently, decrease in the number of wastes and defects on several products.

In the question above, the given statement signifies the leaning effects.

4 0

3 years ago

The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory,

Black_prince [1.1K]

Answer:

Cost of Goods Sold: $245,000

Explanation:

Cost of Goods Sold refers to the direct costs that are incurred when producing the goods sold by a particular company. It includes many costs such as beginning inventory, purchases, purchase returns, discounts on purchases, freight inwards and ending inventory. COGS is also referred to as cost of sales.

Freight inwards are any transportation costs that are incurred when bringing in purchases, hence this is added to purchases. Purchase returns are deducted since they are being returned and hence not a cost. Purchase discounts are also deducted. Ending inventory is the amount of inventory which is remaining and has not been used, thus, this too is deducted.

The calculation for COGS is provided below step-by-step:

1. Beginning inventory : $33200

2. Purchases : $252000

3. Purchase returns : ($11200)

4. Purchase discounts : ($7200)

5. Freight inwards : $19400

6. Ending inventory : ($41200)

Cost of Goods Sold = $245,000

3 0

3 years ago

Ortega Company manufactures computer hard drives. The market for hard drives is very competitive. The current market price for a

Talja [164]

Answer:

$40

Explanation:

Target cost is the cost per unit arrived at after having deducted the required profit margin from the competitive market price.

It is a management technique that makes management think about ways to achieve a set target cost rather than forcing their actual cost plus profit margin on customers.

In this case, the competitive market price is $54 per unit of hard drive whereas the company expects to achieve a total profit of $14 per unit

Profit margin per unit=$14

competitive market price=$54

Target cost=competitive market price-profit margin per unit

Target cost=$54-$14

Target cost=$40

7 0

3 years ago

Vin diesel owns the fredonia barber shop. he employs 7 barbers and pays each a base rate of $1,380 per month. one of the barbers

harkovskaia [24]

Given: Variable Cost Fixed Cost
per haircut   per month
base salary     9660
manager bonus      530
commission   5.92
advertising   270
rent 940
barber supplies 0.30
utilities 0.25 180
magazines 25
Total      6.47 11605

Revenue 11.47

Break even point in unit = Fixed expenses per month / Contribution margin per month.

Break even point in unit = 11,605 / (11.47-6.47) = 11,605 / 5 = 2,321 haircuts

Break even point in $ = Fixed expenses / Contribution margin ratio

Break even point in $ = 11,605 / (5/11.47) = 11,605 / 0.44 = 26,375

Net Income = (Contribution Margin * # of haircuts) - Fixed expenses

Net Income = (5 * 2,380) - 11,605 = 11,900 - 11,605 = 295

8 0

4 years ago

When first eliminating multiple choice answer choices, you should cross out answers that are silly or are impossible

Airida [17]

Answer:

True

.......

5 0

3 years ago

True or false? Profit is found by subtracting operating costs from total revenue.