Answer:
Through offering unique goods and services, entrepreneurs break away from tradition and reduce dependence on obsolete systems and technologies. This can result in an improved quality of life, improved morale, and greater economic freedom.
Explanation:
Answer:
true, it reduces costs by sharing activities
Explanation:
In this case, since the diversified firm has three different businesses that share common marketing and service operations, it is benefiting from a type of economies of scope called shared activities.
Economies of scope basically refers to saving money when producing two or more goods or services by using common production processes in order to reduce costs. The joint production of the goods or services will cost less than if the company produced each one separately.
This company is benefiting from using shared activities because one single marketing unit and another single operations unit will serve the three separate businesses.
Answer:
Hence, the minimum transfer price = $2
Explanation:
Transfer price is the price at which goods are exchange between branches or divisions of the same group
Where a division is operating at the less than the existing capacity, to optimist the group profit, the minimum transfer price should be set as follows
Minimum transfer price = Variable cost
It is worthy of note that there is no opportunity cost associated with any transfer to the Cologne division because the Bottle division is currently having excess capacity- it can meets all demands both external and internal.
<em>Therefore, any offering price equal to or above the variable manufacturing cost of $2 would be acceptable and optimize the group profit</em>.
Hence, the minimum transfer price = $2
Answer:
The correct answer is b) Product of the number of workers and the level of human capital
Explanation:
The efficiency unit of labor is determinate as a product of the total number of workers in the economy, where the human capital is the best indicator of productivity
Answer:
Debit
$14,181
Explanation:
Given:
Fair Value Adjustment account = $32,217 (Debit)
Net unrealized gain = $46,398 (Credit)
According to Fair Value Adjustment account , Debit balance is lower than Credit balance, So they should Debit (Fair Value Adjustment account)
Debit amount = Net unrealized gain - Fair Value Adjustment account
Debit amount = $46,398 - $32,217
Debit amount = $14,181
