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3 years ago

7. Identifying costs of inflation

Business

1 answer:

Kobotan [32]3 years ago

6 0

Answer:

C. Shoesleather costs

Explanation:

Shoe-leather costs refer to the time, energy and effort people take such as holding less amount of money and going to the bank quite often to make deposits in order to counteract the effect of inflation on the eroding purchasing power of money.

In order to prevent the value of money in her cash register from falling too quickly, Juanita sends an employee to the bank four times per day to make deposits in an interest-bearing account that protects the store's revenues from the effects of inflation.

Hence, this is an example of the Shoes-leather costs of inflation.

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Ferkil Corporation manufacturers a single product that has a selling price of $20.00 per unit. Fixed expenses total $63,000 per

pshichka [43]

Answer:

Break-even point= 11,500 units

Explanation:

Giving the following information:

Selling price= $20.00 per unit.

Fixed expenses= $63,000 per year.

Break-even point= 9,000 units to break even.

Desired profit= $17,500

First, we need to calculate the unitary variable cost:

Break-even point= fixed costs/ contribution margin

9,000= 63,000 / (20 - unitary variable cost)

9,000*20 - 9,000x= 63,000

180,000 - 63,000= 9,000x

117,000/9,000=x

13= unitary variable cost

Now, we can calculate the number of units:

Break-even point= (fixed costs + desired profit) / contribution margin

Break-even point= (63,000 + 17,500) / (20 - 13)

Break-even point= 11,500 units

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3 years ago

Sue is considering splitting the cost of a new TV with her roommate. Her share would be $305.22. Can Sue afford this

prohojiy [21]

Yes, she can make the purchase and have money left over.

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3 years ago

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Arundel Company uses percentage of sales to estimate uncollectibles. At the end of the fiscal year, December 31, 2018, Accounts

oksano4ka [1.4K]

Answer:

The dollar amount that should be credited to Allowance for Uncollectible Accounts at year end is $ 12,100

Explanation:

Providing allowance for doubtful debts

A provision is made for the debts which are likely to be uncollectable by a company.This amount is used to adjast the Trade Receivable balances to show a faithful representation of assets a beusiness has at end of year.

Calculations

December 31, 2018 Arundel Company`s Allowance for Doubtful debts is calculated as follows

Credit Sales × % of allowed provision

$805,000 × 2.0%

$16,100

Adjastment to be done in Allowance for Doubtful Debts Account:

Hint : Open Allowance for Doubtful Debts T Account:

Credits :

Opening Balances 4,000

Balancing Figure (Profit and Loss) 12,100

Totals 16,100

Debit:

Closing Balance 16,100

Totals 16,100

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3 years ago

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A ________ is a performance appraisal method that provides feedback from a panel that typically includes superiors, peers, and s

liubo4ka [24]

Answer:

360-degree feedback system

Explanation:

360-degree feedback system is a process through which feedback from an employee's subordinates, colleagues, and supervisor(s), as well as a self-evaluation by the employee themselves is gathered.

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4 years ago

What should be appropriate for a target market

ladessa [460]

Explanation:

Target market should have appropriate age, gender, lifestyle, likes, preferences, income level, education level, maturity level, marital status, occupation and ethnicity. It can also be shortly termed as appropriate demographics.

Target market is the audience to whom the product is to be sold. In order to pitch the right product to right customer target market has to be identified. Customer profiling is necessary to identify the customers interested in the products or services marketed by an organisation.

Customer base gives the details of what is needed by the customers. Organisation is benefited by only concentrating on the customers who are interested in their products or service.

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3 years ago