Under a perpetual inventory system, the journal entry to record the purchase of inventory on account will include a:

If a business owner can produce more as a whole with an additional worker even if the marginal product associated with that work

lidiya [134]

Answer:

diminishing marginal returns

Explanation:

Based on the information provided within the question it can be said that this scenario indicates that there are diminishing marginal returns. Like mentioned in the question this refers to the decrease in marginal output as additional factors of production are introduced into the production process. Which in this case the additional factors would be more workers, since adding an additional worker seems to lower the marginal product.

8 0

3 years ago

Read 2 more answers

What infrastructure is needed to manufacture the stationery-line

Trava [24]

Answer:

There’s a lot of competition in this market, so you’ll need to discover some things that give you a competitive advantage.

Expertise

Are you already an expert in stationary lines and the printing business? If not, read up and learn as much as you can. A lot of businesses fail because the owners didn’t know enough about the industry.

Designs

How unique are your designs? Have you obtained copyrights for them? Try to get feedback from people other than friends and family who will be more objective to hone in on the big hits and retire those that don’t elicit positive responses.

Unique Selling Proposition

What are you doing that’s significantly different to the competition? Identify a significant pain point that customers experience in this industry. There are already an overwhelming number of designs, so could it be pricing, shipping, customer service or something else? How are you going to do things differently and stand out?

Define Your Market

Who is your ideal customer? For example, if you are designing wedding stationary, what’s the age, income level, and interests of your typical customer? Sometimes the customer ends up being the mother, friend or significant other rather than the ultimate user. Once you’ve narrowed this down, then think of ways to best reach your customer. Let’s say your ideal customer loves going to the dog park, then you could start by approaching people there and giving out samples.

Gain Testimonials

I’m running with the assumption you’re planning on selling stationary direct to consumer, in which case positive testimonials and reviews are even more important. People place much more trust in a brand and product if there are stories from real people (get pictures and video as much as possible) who love it. In the beginning, you may consider giving out your product or having a special discount in exchange for reviews.

Figure out Production

Are there printing companies you know of the specialize in producing stationary for designers? Get some quotes and compare to how much it would cost for you to buy the appropriate printing machines and produce them yourself. Don’t forget to include the time you’ll save not having to print it yourself, but make sure you get shipping times from these companies. Sometimes larger production companies have access to significant discounts on the bulk materials used to create the product than you will be able to obtain on your own. You may consider starting with a small set up of your own just to produce mock ups and samples even if you otherwise outsource your production.

3 0

3 years ago

What is finance? The study of a business's past financial decisions The study of how to allocate assets to maximize returns The

dimulka [17.4K]

Answer: The study of how to allocate assets to maximize returns

Explanation:

Finance refers to the study of how to allocate assets to maximize returns. Finance refers to the study, management, and creation of money and investments.

Finance simply explains how economic agents such as the individual, company or government gets money and how such money is being used.

6 0

3 years ago

Which statement describes the equity‑efficiency trade‑off? Government intervention can increase efficiency in a market. Actions

Gekata [30.6K]

Answer:

The correct answer is "Actions intended to make economic outcomes fairer may cause efficiency to decrease"

Explanation:

"Actions intended to make economic outcomes fairer may cause efficiency to decrease"

An equity-efficiency trade-off appears when an increase in the productive efficiency of a market leads to a reduction in its equity.

A clear example of equity-efficiency trade-off is the "fracking" (fuel extract method). The government takes benefits of this because is a more efficient method and is cheaper than the conventional extract method, however, it brings environmental issues, and leads to a reduction in its environmental equity.

5 0

4 years ago

An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 9% annual coupon. Bond L matures in 15 yea

aksik [14]

Answer:

Price of L bond at 5 percent required rate of return = $1,415.16

Price of L bond at 7 percent required rate of return = $1,182.16

Price of L bond at 10 percent required rate of return = $923.94

The price of the long term bonds change more with a change in interest rate because the long term bonds have a greater interest rate risk as compared to the short term bonds

Explanation:

L bond has a coupon rate of 9 percent, a face value of $1,000 and matures in 15 years. The coupon payments are made on annual basis. At the time of maturity the bondholder gets the face value.

We can find the present value of the coupon payments using the present value of annuity formula and the present value of the face value to be received after fifteen years using the present value formula. Sum of the present value of annuity of coupon payments and present value of the face value should equal the fair value (price) of the bond.

If the required rate of return is 5 percent, the price of the bond can be computed as under

Price = PMT [[(1+i)^n] -1]/[ix(1+i)^n] + FV/(1+i)^n

where PMT = 1,000 x 9% = $90

n = 15 years, i = 5% and FV = $1,000

Plugging the values in the formula we get

Price = 90[{(1+0.05)^15} - 1]/ [0.05 x (1+0.05)^15] + 1,000/(1+0.05)^15

Price = 90[{(1.05)^15} - 1]/ [0.05 x (1.05)^15] + 1,000/(1.05)^15

Price = 90[2.07893 - 1]/ [0.05 x 2.07893] + 1,000/2.07893

Price = 90[1.07893]/ [0.10395] + 1,000/2.07893

Price = 934.14 + 481.02 = 1,415.16

If the required rate of return increases to 7 percent, the price is computed as under

Price = 90[{(1+0.07)^15} - 1]/ [0.07 x (1+0.07)^15] + 1,000/(1+0.07)^15

Price = 90[{(1.07)^15} - 1]/ [0.07 x (1.07)^15] + 1,000/(1.07)^15

Price = 90[2.759 - 1]/ [0.07 x 2.759] + 1,000/2.759

Price = 90[1.759]/ [0.19313] + 1,000/2.759

Price = 819.71+ 362.45 = 1,182.16

If the required rate of return increases to 10 percent, the price is computed as under

Price = 90[{(1+0.1)^15} - 1]/ [0.1 x (1+0.1)^15] + 1,000/(1+0.1)^15

Price = 90[{(1.1)^15} - 1]/ [0.1 x (1.1)^15] + 1,000/(1.1)^15

Price = 90[4.1772 - 1]/ [0.1 x 4.1772] + 1,000/4.1772

Price = 90[3.1772]/ [0.41772] + 1,000/4.1772

Price = 684.55+ 239.39 = 923.94

The price of the long term bonds change more with a change in interest rate because the long term bonds have a greater interest rate risk as compared to the short term bonds

3 0

3 years ago

Under a perpetual inventory​ system, the journal entry to record the purchase of inventory on account will include​ a:

Under a perpetual inventory system, the journal entry to record the purchase of inventory on account will include a: