Answer:
C) Cost of Goods Available for Sale
Explanation:
Cos of goods available for sale appears in income statement made under periodic Inventory system but it does not in the income statement made under perpetual inventory system. In per periodic system COGS is calculated by adjusting purchases, allowances for purchases, freight and all other cost to cost of goods available for sale. By deducting closing inventory we calculate the COGS. On other hand in perpetual system purchases are added in the opening and purchase return and closing inventory deducted to reach at COGS.
Answer:
$826.95
Explanation:
To determine the price of Oil Wells' bonds, we can use the following formula:
bond price = semiannual coupon x [(1 - {1 / [1 + (maturity yield / 2)](years × 2)}) / (.0694 / 2)] + face value / [1 + (maturity yield / 2)](years × 2)
Bond price = $28.25 × [(1 - {1 / [1 + (.0694 / 2)](7 × 2)}) / (.0694 / 2)] + $1,000 / [1 + (.0694 / 2)](7 × 2)
Bond price = $757,92 + $69.03 = $826.95
Answer:
The answer is $2000.
Explanation:
Total surplus = Consumer surplus + Producer surplus
= [ 0.5 (50-0) x ( 90 -45)] + [ 0.5(50-0) x (45 - 10)]
= [ 0.5 x 50 x 45] + [ 0.5 x 50 x 35]
= 1125 + 875
Total Surplus = $2000.
Answer:
Variable costs are costs that vary with production. If production rises, the variable cost rises.
Fixed cost are costs that do not vary with production.
The time frame and contracts allows for distinction between fixed and variable cost in the short run.
in the short run, some costs of production cannot be changed for various reasons. Some of the reasons include, supply contract and Labour laws. Due to labour contracts, it might be difficult if not impossible to change wages paid to workers or fire workers. This makes wages fixed in the short run.
Some costs can be varied easily, for example if sales are low, shipping cost would reduce because the amount of orders are smaller.
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Fixed costs include:
advertising expenditures
interest on company-issued bonds
payments for raw materials
Real estate tax
Executive salary
insurance premiums
wage payments
depreciation and obsolescence charges
rental payments on leased office machinery
Variable costs include :
fuel
shipping charges
sales taxes
All costs are variable in the long run because in the long run production decisions which appeared fixed can be changed. For example, Labour contract can end and the firm can decide to adjust or retain the contract in line with the current economic situation. The firm can decide to move to a cheaper location and reduce rental cost.
Explanation:
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