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3 years ago

What happens to price when the cost of resources rise or fall?

1 answer:

8 0

Price: The value of goods and services that consumers need to pay in order to get it

Cost: The money needed to manufacture a good

So, if the manufacturing costs increase, the Yota expenditure is also likely to increase. As producers want to maintain or even increase profit margins to satisfy shareholders, the price they set for consumers are also likely to increase.

On the other hand, if there is a decrease in cost of resources, the producer is likely to produce more at every price level. Therefore, lowering the price. It is the law of supply.

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During the taking of its physical inventory on December 31, Almond Supplies Company incorrectly counted its inventory as $545,00

IceJOKER [234]

Answer and Explanation:

The effect of undervaluation of Inventory is shown below:-

Inventory Understated = Inventory counted + Correct value of inventory

= $545,000 - $554,000

= $9,000

Now, the effect of undervaluation of Inventory is

Cost of goods overstated by $9,000

Net income understated by $9,000

Retained earning understated by $9,000

Assets (Current assets - Inventory) understated by $9,000

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3 years ago

Ben and Chris combined their love of football with a business venture. They purchased a small portable cart and began selling fo

wolverine [178]

Answer: Option C

Explanation: Environmental circumstances refers to the threats and opportunities that arise from political and economical unstability. These are highly fluctuating factors and can affect the business highly.

In the given case, the business of Ben and Chris slowed down due to the economic breakdown in the country. These factors are inescapable and affect all the businesses in the economy.

Thus, from the above we can conclude that the correct option is C.

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3 years ago

Maddy works at Burgers R Us. Her boss tells her that if she stays with the company for five years, she will receive a bonus of $

Sergeu [11.5K]

Answer:

$4,038

Explanation:

Present value (PV) is the current value of a future sum of money or stream of cash flows given a specified rate of return. Future cash flows are discounted at the discount rate, and the higher the discount rate, the lower the present value of the future cash flows.

Present Value = Future Value x (1/ ( 1 + interest rate ) ^ number of periods)

Present Value = 6,000 x (1/ ( 1 + 0.08) ^ 5)

Present Value = 6,000 x 0.68058

Present Value = $4,038

4 0

2 years ago

Recession and inflation have decreased the value of your investments. This is an example of ______.a. economic risk. b. industry

Fantom [35]

Answer:

Explanation:

Economic risk is the risk that macroeconomic conditions would affect the value of investment .

Examples of economic risks are Recession and inflation

5 0

3 years ago

Before Sandra opened her florist shop she read all she could about the floral industry. She also consulted several published res

Rom4ik [11]

Answer: Secondary data

Explanation: In simple words, the data that is collected by someone and is used by someone else is called secondary data. Government reports and surveys by other such organisation are two of the many examples of secondary data.

In the given case, Sandra collected information for her future business from the published research reports. She did not collected data from a census conducted by herself.

Hence, from the above we can conclude that the correct option is B.

5 0

3 years ago