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2 years ago

Adam Smith believed that _____________ would lead to the production of items that consumers want.

Business

1 answer:

Allisa [31]2 years ago

6 0

Answer:

a. self interest

Explanation:

Adam Smith was a Scottish political economist, social and moral philosopher, author and he is famously considered to be the father of modern economics. Smith was born on the 5th of June, 1723 in Kirkcaldy, United Kingdom and he died on the 17th of July, 1790 in Panmure House, Edinburgh, United Kingdom.

In his first book titled, "The Theory of Moral Sentiments" which was published in 1776, he proposed the idea of an invisible hand, based on the tendency of free market economy to regulate or self-adjust themselves through demand and supply, competition, and self interest.

Hence, Adam Smith believed that self interest would lead to the production of items that consumers want.

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"cost assignment refers to the general case of assigning costs to cost pools or cost objects. when there is a direct and traceab

tatuchka [14]

Yes you are correct the cost pool is the people cost object is the product

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3 years ago

Prepare traditional and contribution margin income statements (Learning Objective 6) The Willowick Ice Cream Shoppe sold 8,700 s

Leto [7]

Answer:

Sales Revenues 26100

COGS <u> 5655</u>

gross profit 20445

rent expense 1600

depreciation expense 200

operating expense <u>2600</u>

net income 16045

Sales Revenues 26100

Variable Cost <u> 6305 </u>

Contribution margin 19795

rent expense 1600

depreciation expense 200

fixed operating expense<u> 1950 </u>

net income 16045

Explanation:

traditional:

COGS

$12 tub / 30 ice cream cones = $0.40

+ 0.25 ice cream cones

total per unit 0.65

8,700 x 0.65 = 5655

Gross profit: sales revenue less COGS

then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.

contribution the variable cost will be subtracted from the sales revenues

that will include the 75% of the operating expenses

The difference between sales revenue and variable cost is called contribution margin.

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2 years ago

Lidell Inc. budgeted production of 48,000 personal journals in 20Y6. Each journal requires assembly. Assume that three minutes a

mote1985 [20]

Answer:

Direct labor cost= $31,200

Explanation:

Giving the following information:

Production= 48,000 units

Standard time= 3 minutes per unit

Rate= $13 per hour

First, we need to calculate the number of hours required:

The proportion of minuted per hour= 3/60= 0.05

Number of hours= 48,000*0.05= 2,400 hours

Now, the direct labor cost:

Direct labor cost= 2,400*13= $31,200

7 0

3 years ago

If the contribution margin is not sufficient to cover fixed expenses:.

Elan Coil [88]

If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

<h3>What is a Contribution Margin?</h3>

The contribution margin can be expressed in gross income terms. After subtracting the variable element of the firm's expenditures, it indicates the extra money gained for each product sold.

The contribution margin is calculated by subtracting the selling price/unit from the variable cost/unit.

This metric displays how much a certain product adds to the company's total earnings. It displays the share of revenue that helps to pay the firm's fixed costs and gives one approach to illustrate the profit potential of a certain product supplied by a company.

Therefore, If there is an insufficient contribution margin to cover fixed expenses, there will always be an occurrence of a net loss.

Learn more about contribution margin here:

brainly.com/question/24881206

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2 years ago

In what order must the three key financial statements be prepared?

ra1l [238]

Answer:

D. income statement, statement of owner's equity, balance sheet is the correct answer.

Explanation:

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3 years ago