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3 years ago

Use the following classification to determine which category each of the following goods falls into.

Business

1 answer:

valkas [14]3 years ago

5 0

Answer:

When a good is said to be Excludable, it means that it's access can be restricted to being used by only a certain number of people.

Similarly Non-Excludable is the opposite.

And when a good is said to be Rival in Consumption, it means that when it is used, it reduces the chances of other being able to use the good because it is being depleted.

Non - Rival means the opposite.

Public Goods

These goods are said to be Non-Rival and Non - Excludable. Their use by one person does not deplete it for another and it's access cannot be restricted to certain people.

Private Goods

These Goods are both Rival and Excludable.

Club Goods

These goods are Non-Rival in nature, but they are Excludable.

Common Resource

These are Rival goods but they are Not - Excludable.

Public swimming pools with free admission during summer. - Common Resource

Public Pools are rival goods because when they are used by people, the quality reduces and more treatment or water will have to be added to maintain it. It is Non-Excludable however because it is open to all with free entrance.

Flood control - Public Good

Flood control is a state sponsored program aimed at helping everyone in the country or rather the affected area. It is non-excludable and non-rival in nature.

Private security patrol with idle officers - Club Resource

This is a club resource because the security provided is non - rival in that it does not get depleted. However because they are private, they only protect certain people which makes it Excludable in nature.

Public basketball courts - Common Resource

Anyone can use Public Courts thereby making them Non-Excludable. However, the more people that use the courts, the more damaged it gets making it Rival in nature.

Flu vaccine - Private Good

Flu vaccines are Rival in Consumption in that every flu vaccine given to one person reduces the amount of flu vaccine available for others. It is also Excludable because not all people get it as it is free up to a certain age and then has to be paid for.

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The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the

mr_godi [17]

The question is incomplete. Here is the complete question:

The following annual returns for Stock E are projected over the next year for three possible states of the economy. What is the stock’s expected return and standard deviation of returns? E(R) = 8.5% ; σ = 22.70%; mean = $7.50; standard deviation = $2.50

State Prob E(R)

Boom 10% 40%

Normal 60% 20%

Recession 30% - 25%

Answer:

The expected return of the stock E(R) is 8.5%.

The standard deviation of the returns is 22.7%

Explanation:

Expected return

The expected return of the stock can be calculated by multiplying the stock's expected return E(R) in each state of economy by the probability of that state.

The expected return E(R) = (0.4 * 0.1) + (0.2 * 0.6) + (-0.25 * 0.3)

The expected return E(R) = 0.04 + 0.12 -0.075 = 0.085 or 8.5%

Standard Deviation of returns

The standard deviation is a measure of total risk. It measures the volatility of the stock's expected return. The standard deviation (SD) of a stock's return can be calculated by using the following formula:

SD = √(rA - E(R))² * (pA) + (rB - E(R))² * (pB) + ... + (rN - E(R))² * (pN)

Where,

rA, rB to rN is the return under event A, B to N.
pA, pB to pN is the probability of these events to occur
E(R) is the expected return of the stock

Here, the events are the state of economy.

So, SD = √(0.4 - 0.085)² * (0.1) + (0.2 - 0.085)² * (0.6) + (-0.25 - 0.085)² * (0.3)

SD = 0.22699 or 22.699% rounded off to 22.70%

7 0

3 years ago

Ashley has a large and growing collection of animated movies. She wants to replace her old television with a new LCD model, so s

Lelu [443]

Answer:

$3,402

Explanation:

We are to calculate the future value of the annuity

The formula for calculating future value = A x (B / r)

B = [(1 + r)^n] - 1

R = interest rate

N = number of years

(1.10)² - 1 = 0.21

$1,620 x( 0.21 / 0.1) = $3,402

4 0

3 years ago

The following summarizes the aging of accounts receivable for Johnston Supplies, Inc. as of July 31, 2016:

dybincka [34]

Answer:

a. June 30, 2016 adjusting entry for bad debt expense

Dr Bad debt expense 9,108

Cr Allowance for doubtful accounts 9,108

b. August 15, 2016, uncollectible accounts are written off

Dr Allowance for doubtful accounts 3,251

Cr Accounts receivable 3,251

c. Allowance for doubtful accounts

debit credit

June 30, 2016 $38,565

August 15, 2016 $3,251

August 15, 2016 $35,314

Explanation:

Number of Days Total Accounts Historical % Total

Unpaid Receivable Uncollectible

Not yet due $128,200 3% $3,846

1-30 days past due $90,900 13% $11,817

31-60 days past due $55,300 19% $10,507

Over 60 days past due $33,500 37% $12,395

Total $38,565

6 0

3 years ago

Novak Company took a physical inventory on December 31 and determined that goods costing $190,000 were on hand. Not included in

Lorico [155]

Answer: $237070

Explanation:

The amount that Novak should report as its December 31 inventory will be:

Inventory in hand = $190,000

Add: Goods bought from Pelzer Corporation = $25,170

Add: Cost of goods sold to Alvarez Company = $21900

Total = $237070

The amount that Novak should report as its December 31 inventory will be $237070

8 0

3 years ago

A mixed cost: A. Requires the future outlay of cash and is relevant for future decision making. B. Does not change with changes

Ket [755]

Answer:

6. D. Contains a combination of fixed costs and variable costs.

7. B. Does not change with changes in the volume of activity within the relevant range.

8. C. Direct materials, direct labor, and factory overhead.

9. A. Finished goods inventory.

10. D. Work-in-Process inventory.

11. B. Cost of goods purchased.

Explanation:

6. Mixed cost is a combination of fixed costs and variable costs. Therefore, the option "D" is the correct answer. However, it is not directly traceable to a cost object. The mixed cost has not been incurred until the manufacturer uses it. It cannot change up to a specific volume, but mixed cost increases after that limit — for example - Telephone bill or Electric bill.

7. Fixed cost is the cost that does not change as the volume changes within the relevant range. Therefore, option B is right, and option D is incorrect. Because it does not require the future outlay of cash for decision making, it is not directly traceable to a cost object. If the manufacturer does not rent a house for administrative purposes, it can be avoided.

8. The three major cost components of a manufactured product are-

Direct materials, direct labor, and factory overhead. Those are the combination of manufacturing cost. So, C is the answer. Indirect labor and materials are not major cost components, so B is incorrect. Opportunity cost and sunk costs are decision-making costs, so D is wrong. Selling, administrative, and marketing costs are non-manufacturing costs, so A and E are wrong.

9. When the manufacturing firm has completed the production of a specific product but has not yet sold to the customers or third parties, it is termed as the finished goods inventory. In short, it states that the number of manufactured products that are available for sale. It is a current asset for the manufacturer because those can be sold within a year.

10. Work-in-process inventory is such a type of manufacturing inventory or cost that has not yet been manufactured or partially manufactured or in the process of manufacturing. It is not a conversion costs because it may incur the direct labor and manufacturing overhead. It cannot be a finished good or cost of goods sold.

11. A manufacturing firm's cost of goods manufactured is equivalent to a merchandising firm's cost of goods purchased. Therefore, the option "B" is correct.

The cost of goods sold is measured with the help of the cost of goods purchased. So, option A is incorrect. After adding the costs of goods manufactured with the beginning finished goods inventory, we can get the costs of goods available for sale. Therefore, C, D, and E cannot be the answer.

3 0

3 years ago