The captains of industry like J.P. Morgan<span> respond to signs that the stock market was about to </span><span>collapse by meeting each other and trying to save the market. J.P. Morgan invited the leading bankers and financial experts to his home where they set up a shop in his library. They labored to channel money from strong institutions to weaker institutions to keep them afloat. Their efforts improved the condition of the economy over several weeks.</span>
Answer:
Credit was invented by Mr A Smith (of bank note fame) to allow parents to top-up teenagers phones. This was viewed as particularly important since without it they would be unable to cheat on their homework.
Explanation:
Do I really need to explain such an egregious answer
Answer:
The correct answer is accounting profit is positive.
Explanation:
Economic profits are the difference between the total revenue earned by selling the goods and total costs incurred in the production process. It includes both implicit as well as explicit costs.
The explicit costs are the direct costs incurred in the production process. There is an actual payment involved.
The implicit costs are the indirect costs incurred. They are generally the opportunity cost of sacrificing the alternative option. There is no actual payment involved.
The accounting profits include only explicit costs incurred in the production process. It is the difference between total revenue earned and explicit cost.
A normal profit means zero economic profits. But accountable profits is higher than economic profits, so there will be some positive accountable profit.
Answer:
Xia Co.
1-a. The relevant costs for Xia Co. to make or buy the part:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
1-b. Xia should make the part. It will cost Xia $4.00 to make the component while it costs it $5.00 to buy. It should therefore, make the component.
Explanation:
a) Data and Calculations:
Price of buying component = $5
Cost of making component:
Direct materials $2.25
Direct labor 1.00
Incremental overhead 0.75
Total relevant cost $4.00
b) The relevant cost for making the component is $4.00. The overhead cost based on 200% direct labor is not a relevant cost. It is an allocated fixed cost and must be incurred whatever decision is taken. By making the component, Xia Co. will be netting in a unit contribution of $1 ($5.00 - $4.00) with the alternative of buying.
Because dividends are considered to be a return of premium I hope this helps ya out
