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3 years ago

Relationship between risk and return

Business

1 answer:

Svetlanka [38]3 years ago

7 0

Answer:

Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns.

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M7-7 to M7-9 Calculating Cost of Goods Available for Sale, Ending Inventory, Sales, Cost of Goods Sold, and Gross Profit under P

zvonat [6]

Answer:

Date Units Unit Cost Unit Selling Price

July 1 Beginning Inventory 50 $ 10

July 13 Purchase 250 13

July 25 Sold (100 ) $ 15

July 31 Ending Inventory 200

Cost of Goods Available for sale= 250 units at $ 13+ 50 units at $ 10

= 3250 + 500= $3750

FIFO Ending Inventory $ 2600

200 units at $ 13= $ 2600

Sales 100At $ 15= $1500

FIFO Cost Of Goods Sold $ 1150

50 units at $ 10= $ 500

50 units at $ 13= $ 650

LIFO Ending Inventory $ 2450

50 units at $ 10= $ 500

150 units at $ 13= $ 1950

Sales 100 at $ 15= $1500

LIFO Cost Of Goods Sold $ 1150= Cost of Goods Available for Sale Less LIFO Ending Inventory = 3750- 2450= $ 1300

100 units at $ 13= $ 1300

Weighted Average Ending Inventory 12.5 * 200= $ 2500

Total Cost/ total units= 3750/300= 12.5

Weighted Average Cost Of Goods Sold $ 1150= Cost of Goods Available for Sale Less Weighted Average Ending Inventory = 3750- 2500= $ 1250

Weighted Gross Profit= Sales Less Weighted Cost Of Goods Sold= $ 1500- $ 1250= $ 250

7 0

3 years ago

The three most common cost behavior classifications are:___________A. variable costs, product costs, and sunk costs B. fixed cos

wel

Answer:

B. fixed costs, variable costs, and mixed costs

Explanation:

Mainly there are three types of cost i.e variable cost, fixed cost, and the mixed cost. The variable cost is that cost which is change when the production level change whereas the fixed cost is that cost which remains constant whether production level changes or not .

The mixed cost is a semi-variable cost which include some part of the fixed cost and some part of the variable cost

So, the variable cost includes indirect material, indirect labor, and factory supplies

The fixed cost includes supervision, taxes, and depreciation expense.

And, the mixed cost includes insurance, utilities, etc.

4 0

3 years ago

Mills Corporation acquired as an investment $225 million of 8% bonds, dated July 1, on July 1, 2021. Company management is holdi

Sholpan [36]

Answer:

Please see solution below.

Explanation:

July 1, 2021

Dr Investment in bonds $225,000,000

Dr Premium on investment in bonds $25,000,000

Cr Cash $250,000,000

December 31, 2021

Dr Cash $18,000,000

Cr Interest revenue $15,000,000

Cr Premium on investments in bonds

$3,000,000

Investment in bonds. $225,000,000

Premium on investment in bonds $22,000,000

January 2, 2022

Dr. Cash $266,000,000

Cr Investment in bonds $225,000,000

Cr Premium on investment in bonds $22,000,000

Cr Gain on sale of investments $19,000,000

Workings:

Effective interest rate on first coupon received = [ $225,000,000 × 8%] - [ $250,000,000 × 6%]

= $18,000,000 - $15,000,000

= $3,000,000

Premium on investment in bonds = $25,000,000 - $3,000,000

= $22,000,000

8 0

3 years ago

Michael has struggled in math classes and worries that he does not have enough math skills to succeed in the work place

zlopas [31]

Hello! I am answering this question for you. one second!

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3 years ago

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The _____ approach to systems development is a group-based tool for collecting user requirements.

miss Akunina [59]

C. prototyping, does it makes sense now.

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4 years ago