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2 years ago

Marginal cost is equal to the options:

Business

1 answer:

Nadusha1986 [10]2 years ago

7 0

Answer:

B) change in average total costs divided by the change in output.

Explanation:

Marginal cost is the extra cost incurred for the production of an additional unit of output after breakeven. At the breakeven point, fixed costs have been absorbed. Any additional production will incur variable costs . Marginal costs will, therefore, comprise direct labor, direct material, and a small proportion of fixed costs, such as administration and selling costs.

The calculate marginal cost, divide the total change in costs by the change in the product output. i.e.

Marginal costs = change in cost / change in output.

Marginal cost is compared with marginal revenue when deciding whether to increase production or not.

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Silvia Company acquires a 30% interest in Small Company. The fair value of Small's inventory exceeds its carrying value by $100,

beks73 [17]

Answer:

The revenue that the investment in the company would increase by $100,000.

Explanation:

Though the International Accounting Standard IAS 2 Inventories says that the inventory must be recorded at lower of:

Cost
Net Realizable Value (Fair Value less Cost to Sell)

This means though the Net realizable value increases but the cost remains the lower. This means their must not be any changes made to inventory account.

The profit earned from the increase in inventory value will be reflected in the income which will increase the net worth of the investment. So the increase in investment revenue would be by $100,000.

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2 years ago

In late April, the Acme Construction Co. submitted a $1,200,000 progress billing on a construction contract.On May 2, the bill w

patriot [66]

Construction expenditures should be debited when <u>D. The bill is approved for payment.</u>

<u>Explanation:</u>

In the above scenario, Acme Construction Co. submitted bill amount of $1,200,000 on a construction contract. The payment of the bill was approved on May 2. According to the contract, 10% was subject to retention.

This construction expenditure is debited when the bill is approved for payment. Contract includes all the details regarding payment and terms and conditions between the companies or parties.

Once the bill submitted by company is approved, then the retention amount will be automatically debited.

8 0

2 years ago

An active worker receives $500 every two weeks. This kind of monetary reward for work is called ______.

Vladimir79 [104]

I believe the correct answer is Payment, because if the worker receives $500 EVERY TWO WEEKS it most likely means that is his payment or what he is employed for

5 0

2 years ago

Read 2 more answers

At the end of 2017, companies from one country collectively owned $22 billion in assets in its neighboring country. The $2 billi

Nastasia [14]

Answer:

A. Stock

Explanation:

The Stock of Foreign Direct Investment (FDI) measure the total level of direct investment at a given point in time, usually the end of a quarter or of a year.

The outward FDI stock is the value of the resident investors' equity in and net loans to enterprises in foreign economies.

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2 years ago

In 1975, interest rates were 7.85 % and the rate of inflation was 12.3 % in the United States. What was the real interest rate

Georgia [21]

Answer:

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.

Explanation:

Data provided:

Interest rates = 7.85 %

The rate of inflation = 12.3 %

Now,

The Real interest rate is calculated as :

Real interest rate = Nominal interest rate - Inflation rate

on substituting the respective values, we get

Real interest rate = 7.85% - 12.3%

The real interest rate = - 4.45%

Here,

Since the real rate of interest is negative, this means that the purchasing power of the savings have decreased over the year.

4 0

2 years ago