Answer:
True (A)
Explanation:
Business can ensure product standardization for different markets with careful attention to controlling cost and quality. Costs are inevitably in a business, however, they can be managed to the barest minimum.
Answer:
A. $5,000 of depreciation expense on its income statement.
Explanation:
Assuming the company uses straight line method of depreciation, then cost of depreciation is $5,000 each year.
Now, under the income statement as per GAAP, the cost of goods sold only includes the direct cost associated with manufacturing the product.
It does not included fixed cost like depreciation.
As the depreciation is fixed and does not depend on number of units produced and sold, the depreciation to be charged in income statement = $5,000.
Therefore, the correct option is
A. $5,000 of depreciation expense on its income statement.
Real estate commission fee
Answer:
PPF : Downward Sloping Straight Line
Explanation:
PPF is the locus of product combinations that an economy can produce, given resources & technology.
It is downward sloping : Because of inverse relationship between two goods- if one has to be increased other has to be decreased , because of same resources & technology.
Marginal Opportunity Cost (Slope of PPC): is ratio of a good sacrifised to gain each additional unit of the other good.
∆ Good sacrifised / ∆ Good gained
If this ratio is same i.e constant amount of a good is sacrifised to gain an additional amount of the other one , the slope of PPC is constant & it is a straight line
Eg : Good1 Good2 MOC [∆Good2/∆Good1]
0 20 _
10 10 -10/10 = -1 (10-20)/(10-0)
20 0 -10/10 = -1 (0-10)(/20-10)
So , same (1) good 2 is sacrifised to attain a good 1 each time.
However Generally: MOC is increasing , because of assumption that resources are unequally efficient in various goods production - shifting good from efficient to inefficient increases sacrifise each time. This makes PPC usually concave.
Answer:
True
Explanation:
The whole purpose of developing a strategy is to create unique and valuable market position, but f there was only one good market position, then every company would just try to reach that position. Through their own particular strategy, each company must try to differentiate themselves from the competition and hopefully reach the intended market position.
