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Answer:
(A) It encourages managers of departments with high ROIs to invest in average ROI projects.
Explanation:
The full form of ROI is Return of investment. Generally, ROI is used by different organizations to find out the profit from the expenditure. By using the concept of return of investment the organization can save money as well as time.ROI also helps to explore and measure potential returns on various investment opportunities
Therefore answer is a.
The value created by firms in the form of goods and services are distributed among various economic entities that consume them such as private consumers, government etc. But a closed circular flow diagram does not depict the other external values created. For example, a private college is a firm that produces education or provides education as a service to individuals who pay for it. This has a positive externality on society since these students can later teach others in society. Also firms produce under certain conditions and surveillance.
Firms can gain a certain control over society by studying the elasticities of demand. Also, firms generate certain expectations regarding wages and other social benefits. On the other hand, firms are controlled by governmental policies such as minimum wage laws, pricing laws etc. Such policies bind the full potential output if the potential output is not in confluence with social goals or maximization of social welfare.
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Answer: The adjusting entry is:
Debit ($) Credit ($)
Supplies expenses 4,648
Supplies 4,648
<em>Being adjustment to account for supplies expenses incurred at year end</em>
Explanation: The supplies account is an asset account, so it has a debit balance. To arrive at the supplies expenses amount journalzed above, we have to do a movement schedule for the supplies account as follows:
Opening balance $1,804
Purchases during the period 3,283
Supplies expenses (XXX)
Balance 439
To get the value of XXX above, we do $1,804+3,283-XXX=439; using subject of the formula, XXX = $1,804+3,283-439 = $4,648.
Answer and explanation:
Outside consultants are individuals who work for themselves or represent a firm and are hired for their expertise to give suggestions on certain matters where an organization does not have much information.
<em>The advantage of counting on these professionals relies on the wide scope of ideas that they can provide to the organization in cases such as selecting a vendor solution. </em>
However, <em>by hiring an external consultant the projects of the employees of the company can be set aside even if they can have more information on the business itself and might be more aware of what the company needs and could best suit it.</em>