<span>Profit is the payment to
entrepreneurship. When the entity’s amount earned exceeds the amount spent in
buying, operating, or producing something and it has a financial gain, this is
then the term we call the profit. This
is what an entity obtains when the amount of revenue from a business activity exceeds
the expenses, costs and taxes which are all needed to sustain the activity. The
owner may or may not decide to use the profit on the business. This is also defined as the money the
business makes after all the expenses have been taken into account. It is any
company’s goal to consistently earn profit. This is the reason why much of
business performance is based on the various forms related to profitability. </span>
Answer:
The change in the dollar amount of inventory is $200 due to change in the inventory costing method.
Explanation:
The variable cost per unit is $6.00 while the fixed cost per unit is $2.00
Variable cost per unit = $6.00
Absorption cost pet units = $8.00
Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory
Total absorption cost = $8.00 × 100 = $800
Total cost under variable cost = Variable cost per unit × number of units in ending inventory
Total variable cost = $6.00 × 100 = $600
Change in cost = Total absorption cost - Total variable cost
Change in cost = $800 - $600 = $200
Answer:
Merchandise inventory = $32,864
Cost of merchandise sold = $310,776
Explanation:
As per the data given in the question,
Merchandise inventory = Balance of purchases on 21 April
= 26 units × $1,264 per unit
= $32,864
Calculating the ending inventory :
Details units
Ending inventory = beginning inventory + Purchase - Sale
Beginning inventory = 25 units
Add : Purchase made on
April 8 = 75 units
May 8 = 60 units
may 28 = 80 units
June 21 = 35 units
Total units for sale = 275 units
Less : Units sold on
April 11 = 40 units
April 30 = 30 units
May 10 = 50 units
May 19 = 20 units
June 5 = 40 units
June 16 = 25 units
June 28 = 44 units
Ending Inventory in units = 26 units
Cost of merchandise sold =Merchandise available for sale - (Merchandise inventory, June 30, 2016)
=$343,640 - $32,864
= $310,776
Answer: Businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
Explanation:
Inflation is when there is a general increase in the prices of goods and services on the economy.
The best illustration of the wealth effect of inflation based on the article titled "Inflation and the Weimar Republic," is that businessmen traveling around the country found themselves borrowing funds from their customers each stage of the way. The cash they'd allocated for the entire trip barely sufficed to pay the way to the next stop."
This is because when there is inflation, theee will be rise in price and hence, the money the businessmen wanted to use won't be enough to get meet their needs hence they'll need more funds.
