Answer:
1)
cost of making (14000*22) = 308000
cost of buying (14000*(18+6)) = 336000
Difference cost = 28000
2)
No, Since, there is not other use of fixed cost, therefore, fixed cost will be a part of cost of buying.
3-a)
cost of making (14000*22) = 308000
cost of buying (14000*18) = 252000
3-b)
Yes, Since, there is other use of fixed cost, therefore, fixed cost will not be a part of cost of buying.
Answer:
C
Explanation:
As unsold items end up being stale and get wasted , it is good for a business to avoid such as much as possible in order to maximize profit.
The customers buying pattern can easily reveal what they prefer to buy and what they do not buy . This can serve as a guide to the producer in what to sustain or increase producing and what to reduce or eliminate in the production line so as to maximally control the level of waste generated due to outdated or unsold stock.
Answer:
Option B.
Explanation:
Basic accounting equation is
Assets = Liabilities + Equity
where,
Equity = Capital + Retained earnings
Retained earnings = Revenue - Expenses - Dividend
On combining these formula, we get
Assets = Liabilities + Capital + Revenue - Expenses - Dividend
It can be rewritten as
Assets + Dividend + Expenses = Liabilities + Capital + Revenue
Assets + Dividends + Expenses = Liabilities + Common stock + Retained Earnings + Revenues
Therefore, the correct option is B.
Answer: $3,025
Explanation:
The Net Working Capital is used to find out if the company is able to use its current assets to cater for it's Current Liabilities and as such is calculated by subtracting Current Assets from Current Liabilities.
= Current Assets - Current Liabilities
Current Liabilities = 975 + 250
= $1,225
The interest bearing funds are not included when Calculating Net Working Cap.
Net Working Capital = 4,250 - 1,225
= $3,025
Answer:
Like wholesale companies, the commercial banks buy in bulk and sell to the public at a discount. These discounts may offer free checking, no fees while opening savings or checking accounts. They also provide the customers with low interest rates on real estate loans.
Commercial banking or business accounts are often more expensive than traditional bank accounts. Banks may charge fees for night deposits, for processing a certain number of checks and for the payroll services.
