1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
a_sh-v [17]
3 years ago
6

After graduating, you might decide to start a small business. As discussed in this chapter, owners of any business need to know

how to calculate the cost of their products. In fact, many small businesses fail because they don't accurately calculate their product costs, so they don't know if they are making a profit or losing money—until it's too late.Suppose that you decide to start a landscape business. You use an old pickup truck that you've fully paid for. You store the truck and other equipment in your parents' barn, and you store trees and shrubs on their land. Your parents will not charge you for the use of these facilities for the first two years, but beginning in the third year they will charge a reasonable rent. Your mother helps you by answering phone calls and providing customers with information. She doesn't charge you for this service, but she plans on doing it for only your first two years in business.In pricing your services, should you include charges for the truck, the barn, the land, and your mother's services when calculating your product cost?InstructionsWrite a response indicating your position regarding this situation. Provide support for your view.
Business
1 answer:
Elanso [62]3 years ago
5 0

Answer:

When the value of the service ends, it will be necessary to include the charges for the truck, the granary and the land. It is not necessary to include your mother's service charges, as she is not charging for the service.

Explanation:

Setting up your own business can be quite a big challenge and you need a lot of control and planning so you don't have to lose money. One of the biggest challenges of becoming an entrepreneur is to price the service performed. As was said in the question above, many people do not know how to place a value on the service produced, mainly because they are unable to identify the expense for service production.

In summary, the expense to produce the service must take into account all charges related to any element necessary to perform the service. Thus, we can consider that in the case shown in the question above, it will be necessary for you to include expenses with the truck (gasoline, repairs, exchange of parts, etc.), with the rent of the granary, with the rent of the land and with the gratification of any employee. Since your mother is not charging for her services, this charge should not be included, however, your mother will only be in this service for two years. If the person replacing your mother charges for the service, this should be added to the cost.

You might be interested in
PLEASE HELP!
lidiya [134]

Answer:

C. 3;4

Explanation:

A cover letter is sent together with the resume to a potential employer. It details the job an applicant is applying for and their qualification for the position. The cover letter allows the applicant to elaborate on their skills and experiences in relation to the position sought after.

The cover letter is a perfect way to create an excellent first impression on the employer. It should be about three to four paragraphs long.

5 0
3 years ago
Which answer option is not a job function associated with a corporate finance department?
Leto [7]
4. As it is not the finance departments job to keep up with reputation and how they look.
5 0
3 years ago
A company pursuing vertical integration can gain market power over its competitors through all of the following EXCEPT: a. avoid
Helen [10]

Answer:

B. Improved adjustment to technological changes.

Explanation:

Vertical Integration: It is a strategy to gain competitive advantage by taking complete control over a few stages of production or distribution. The company implements vertical integration to reduce the cost of production, reduce dependence on others, improve the quality of the product, etc.

In the given case, the company pursuing vertical integration can gain market power over its competitors through improved quality, reduction in cost, and reduction in operation cost, however, it does not improve adjustment to technological changes.

3 0
3 years ago
Decreasing taxes can stimulate the economy by
just olya [345]

Decreasing taxes can stimulate the economy by putting more money in the circulation or by boosting the spending .The tax cuts stimulate the economic growth only in the short-term.

Explanation:

Due to an decrease in tax the after tax income of an individual increases which is used by individuals to buy more product and services.Thus reduced tax rates leads to an increase in  saving and investment, which leads to an  increase in  the productive capacity of the economy as a whole

5 0
3 years ago
By the way do you know how to change your name on here, because my name is Bucky?
Ray Of Light [21]

Answer:

You cant change your name unless you message the mods and say it has personal information or give them a reason y you want to change it. Same i wish I changed mine. lol

Explanation:

3 0
3 years ago
Other questions:
  • At the beginning of 2020, Earth Co purchased a machine at a cost of $40,000. Earth Co expects the machine to remain useful for e
    6·1 answer
  • Market failure associated with public goods Deborah was willing to contribute $40 this year to her local college radio station.
    7·1 answer
  • To an economist, utility refers to the______________.a. usefulness of a good or service.b. satisfaction that results from the co
    13·1 answer
  • ABC Company is a manufacturing firm. At the beginning of July, ABC had a total inventory balance of $48,000. During the month of
    13·1 answer
  • John works as a quality analyst at a technological firm. He wanted to buy a mobile phone for his wife. Though he was abreast of
    14·1 answer
  • The discussion of the standards for selection of peanuts that will be used in M&Ms and the placement of the M&M logo on
    14·1 answer
  • Difference between money paid to and money received from other nations in trade is called balance of trade.
    6·2 answers
  • There will be a higher equilibrium price and lower quantity if _____.
    13·1 answer
  • You want to save at least $10,000 for a down payment on a new car. In cell B6, enter a formula to calculate how much you will ha
    10·1 answer
  • In horizontal analysis the percent change is computed by: Multiple Choice Subtracting the analysis period amount from the base p
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!