Answer:
The correct answer is D. increase; decrease.
Explanation:
Speculation consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the dominant price and not the gain derived from its use, or of some kind of transformation carried out on these or of the transfer between different markets.
A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the price fluctuation based on the theory of arbitration. In an extensive sense, every form of investment that a medium entails is speculative; However, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.
The speculation is based on the forecast and the perception, so that the speculator can also be wrong if he does not correctly anticipate the evolution of future prices, so he will have to sell cheap something he bought expensive. The speculative market therefore rewards those who know how to predict.
Answer:
d. buyback
Explanation:
The scenario that is being described is a form of countertrade known as buyback. There are two reasons why this usually happens. The first is that the manufacturing company has limited access to liquid funds in the country which they are currently located and the goods provide better value. The second circumstance would be that they believe that the product being produced will increase in value and their profits will increase by holding the product as opposed to liquid funds.
<span>
<span>In
investment, the term risk can be defined as the possibility of the investor
losing all or part of their capital in a given venture. High quality bonds
are considered lower risk because the the investor is promised to receive
face value after a certain period unlike stocks that do not carry the same
promise. Returns on high quality bonds are also guaranteed in the form of
fixed interest rates whereas in stocks, a company may pay dividends but this
is not an obligation on their part. Lastly bonds are safer investment as they
are less susceptible to abnormal price changes unlike stocks whose prices can
easily swing in either direction.</span></span>
<span>These are administrative expenses. These expenses are not directly tied to sales or production, but they are still cash outlays nonetheless and need to be accounted for. They are related to the entire company, in comparison to expenses that can be pinned to specific parts of the business.</span>
Answer:
Operating profit using absorption costing will be higher by $3,600 than operating income if using variable costing.
Explanation:
<em>The difference between profit under variable costing and under absorption costing is simply the value of the change in inventory.
</em>
<em>Usually, a decrease in inventory would cause profit under absorption costing to be lower . This is so because cost of goods sold would become higher leading to a lower profit
. And vice versa</em>
<em>Difference in profit = POAR × change inventory
</em>
Predetermined Overhead absorption rate(POAR)
= Estimated overhead/ estimated production unit
= $24,000/2,000 units = $12 per unit
Change in inventory = 1500 - 1200= 300 units
Difference in profit = 300 × $12 per unit = $3,600
Operating profit using absorption costing will be higher by $3,600 than operating income if using variable costing.
