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3 years ago

Managerial economics

Business

1 answer:

lbvjy [14]3 years ago

7 0

Answer:

d. ensures managers always make good decisions.

Explanation:

Managerial economics is the study of the economics theory with accounting managerial scope to ensure the decision taken are as required within the business practices. It helps managers to solve accounting problems and make decision using economic theory and laws.

It provides a basis to solve and give the best solutions at all times even under constraints or in the time of scarcity. It uses quantitative methods and statistical tools to get better result oriented strategies.

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3 years ago

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A middleman is Multiple Choice a person or firm whose sole responsibility is bringing a buyer to the last link in the distributi

hichkok12 [17]

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3 years ago

If a company would like to increase its degree of operating leverage it should?

dalvyx [7]

If a company would like to improve its degree of using leverage it should increase its Fixed Costs relative to its Variable Costs.

<h3>What is the relationship between variable cost and fixed cost with profit?</h3>

As they are time-related, or stable across time, fixed costs. Variable costs depend on volume and shift as the quantity of output does.

Variable costs are those that rise or fall in line with the volume of goods produced, while fixed costs remain constant regardless of output levels. Gross profit is significantly influenced by both fixed and variable costs; when production costs rise, gross profit decreases.

The amount of product generated determines the fluctuation in variable costs. Raw materials, labor, and commissions are examples of variable expenses. Regardless of the level of production, fixed expenses stay constant. Lease and rental payments, insurance, and interest payments are examples of fixed costs.

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1 year ago

By how much does the residual elasticity of demand facing a firm increase as the number of firms increases by one firm?

soldi70 [24.7K]

Answer:

Explanation:

By how much does the residual elasticity of demand facing a firm increase, as the number of firms in the market increases by one?

The residual elasticity of demand facing a firm, is the portion of market demand which is not met or supplied by other firms in the market. In other words, this is the demand curve of the firm, given the presence of other firms in the market.

Given that

- all the firms in this market sell identical products,

- have identical marginal costs,

- and produce the same amount of output;

We model the residual elasticity of demand for this firm as:

EDr = EDm - EDa

Where:

EDr = the residual elasticity of demand for this firm

EDm = market elasticity of demand

EDa = total elasticity of demand facing ALL other firms in the market.

If EDa = 4, and a new firm enters the market, it will become 5

Elasticity of demand is the degree of responsiveness of demand, to change in price of a commodity.

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4 years ago

Valli Company uses the percentage of sales method for recording bad debts expense. For the year, cash sales are $700000 and cred

marshall27 [118]

Answer:

Adjusting entry Valli Company will make to record the bad debts expense:

Debit Bad Debts Expense $25,000

Credit Allowance for Doubtful Account $25,000

Explanation:

Valli Company uses the percentage of sales method for recording bad debts expense. Bad debts expense is calculated by using the following formula:

Bad Debts Expense = % Estimated Bad debts × Credit Sales

In Valli, Credit sales are $2,500,000 and % estimated is 1%.

Bad Debts Expense = 1% x $2,500,000 = $25,000

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $25,000

Credit Allowance for Doubtful Account $25,000

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3 years ago