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dybincka [34]
3 years ago
5

g If all resources used in the production of a product are increased by 10 percent and output increases by less than 5 percent,

then the firm is experiencing Multiple Choice economies of scale. diseconomies of scale. constant returns to scale. decreasing average total costs.
Business
1 answer:
vlabodo [156]3 years ago
6 0

Answer: The firm is experiencing diseconomies of scale.

Explanation:

In economics, diseconomies of scale are cost disadvantages that economic agents such as individuals, firms and governments accrue as a result of an increase in the output or organizational size resulting in the production of goods and services at an increased per-unit-costs.

Diseconomies of scale in businesses lead to an increase in the business average costs as the business grows. Regarding the question, while resources are increased by 10%, output increased by less than 5% shows diseconomies of scale since there's increase in the cost.

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Using a perpetual inventory system, the seller’s journal entry to record the sale of merchandise on account includes a:_________
alexandr1967 [171]

Answer:

D. Debit to Accounts Receivable

Explanation:

Transaction of sale in Perpetual Inventory system will be recorded as follow:

                                          Dr.    Cr.

Account Receivable         xxx

Sales                                          xxx

Cost of Goods Sold          xxx

Merchandise Inventory            xxx

There is no entry to purchases, cost of goods sold is debited and inventory is credited. So, the only correct option which is dealt in above transactions.

5 0
3 years ago
How do you get a Monthly budget spend down
Pie
You can also save $3 a day. At the end of a 30 day month, you’ll have $60.
3 0
2 years ago
On January 1, 2014, Evers Company purchased the following machine for use in its production process:
iren2701 [21]

Answer:

a) Calculate the amount of depreciation expense that Evers should record each year of its useful life under the following assumptions. Show your workings.

(1) Straight-line method

depreciable value = $180,000 - $10,000 = $170,000 / 4 = $42,500 per year (same for each year)

(2) Double declining balance method

depreciation expense year 2014 = $180,000 x 1/4 x 2 = $90,000

depreciation expense year 2015 = $90,000 x 1/4 x 2 = $45,000

depreciation expense year 2016 = $45,000 x 1/4 x 2 = $22,500

depreciation expense year 2017 = $22,500

(3) Units-of-activity method and estimates that the useful life of machine is 125,000 units. Actual usage is as follows: 2014, 45,000 units; 2015, 35,000 units; 2016, 25,000 units; 2017, 20,000 units.

depreciation expense per unit = $170,000 / 125,000 units = $1.36

depreciation expense year 2014 = $1.36 x 45,000 = $61,200

depreciation expense year 2015 = $1.36 x 35,000 = $47,600

depreciation expense year 2016 = $1.36 x 25,000 = $34,000

depreciation expense year 2017 = $1.36 x 20,000 = $27,200

b) Which method used to calculate depreciation reports the highest amount of depreciation expense in year 1?

double declining balance

The highest in year 4?

straight line method

The highest total amount over the 4-year period?

double declining balance

5 0
3 years ago
The number one reason risk pooling is valuable to the insurance industry is... A. It allows companies to charge the same premium
kolbaska11 [484]

The reason for risk pooling which is beneficial for the insurance industry is best described as it brings together many individuals' premiums so that there is money to cover a selected few losses.

Option B is the correct answer.

<h3>Who is a policyholder?</h3>

The policyholder is an individual who takes an insurance policy from an insurance company. He pays insurance premiums against their respective policies.

The insurance contract is an agreement between the individuals and insurance company to indemnify them at the happening of the specified event and individuals also agreed to pay the insurance premiums on time. The risk pooling allows the insurance company to get insured many people against a small amount of money called an insurance premium.

Therefore, risk pooling is valuable for the insurance company in respect of the insurance policies.

Learn more about the insurance in the related link;

brainly.com/question/14969988

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7 0
2 years ago
Angela, a recent university graduate, wants to start a fashion boutique that will sell tailor-made garments and accessories. She
ella [17]

Answer:

E. The Small business Administration

Explanation:

The small business administration is an agency that supports  small business and entrepreneurs with setting up of their business. The small business administration helps with  the provision of counseling to aid individuals trying to start and grow businesses.

Therefore Angela should meet the Small business Administration for financial and managerial assistance.

4 0
3 years ago
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