Answer:
company B
company B
Explanation:
A company has comparative advantage in production if it produces at a lower opportunity cost when compared to other companies.
Opportunity cost of producing cell phones
company A = 100 / 50 = 2
company B = 200 / 150 = 1.3
The opportunity cost of company B is lower than that of company A. Company B has a comparative advantage in the production of cell phones
A company has absolute advantage in the production of a good or service if it produces more quantity of a good when compared to other countries
Company B produces 200 computers while company A produces 100 computer. Company B has an absolute advantage in the production of computers
Answer and Explanation:
1. Journal Entries
July 15 Accounts Receivable $66,000
Sale Revenue $66,000
July 23 Cash $64,680
Sales discount 1320
Accounts Receivable 66,000
2. Journal Entries
July 15 Accounts Receivable $66,000
Sale Revenue $66,000
August 15 Cash $66,000
Accounts Receivable 66,000
Sales promotion expenditures account for <u>"19"</u> percent of all promotional spending.
A promotion expense is a cost that a business brings about to improve its items or administrations known to purchasers, more often than not as giveaways. The IRS considers advancement costs to be assess deductible as operational expense, if they are standard and essential. When writing off promotion expenses on their assessment forms, organizations should take care to guarantee that these costs would not all the more precisely be named publicizing costs or charitable commitments.
Answer:
The correct answer is (b)
Explanation:
Socioeconomic cultural is one of the important factors that can help a business to grow and expand. Changes in socioeconomic environment can positively and negatively affects the sales. In this case of Fabtabix, the socioeconomic change has positively affected their business that is why it is growing over the past few years. Fashion conscious is a sociocultural component.
Answer:
1. Yes. Cash flows are able to illustrate liquidity.
2. Recommendations
a. Reducing levels of Inventory.
b. Negotiating Longer credit settlement period with suppliers.
Explanation:
One of the uses of a Cash flow Statement is its use in negotiating loans with bank and other lenders. Of interest to these parties is the liquidity of the entity.
Liquidity is the ability of an entity to honor its short-term obligations using its current assets. Liquidity is reflected in the Cash flow from Operating Activities of the Cash flow Statement.
<u>Recommendation</u>
Companies can maintain liquidity through reducing levels of inventory. Inventory ties up cash. Negotiating longer credit settlement period with suppliers can also increase liquidity.
