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2 years ago

Difference between relative and absolute scarcity

1 answer:

7 0

Answer: Relative scarcity could be described as that where the resources are limited in supply for a short while, due to manufacturing or supply challenges.

Absolute scarcity could he described as where supply is naturally limited. No possibility of the supply increasing.

Explanation:

Relative scarcity could be described as that where the resources are limited in supply for a short while, due to manufacturing or supply challenges.

Absolute scarcity could he described as where supply is naturally limited. No possibility of the supply increasing.

In relative scarcity, there is a probability of the supply to be made available later while in absolute, there is no possibility of it happening.

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Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.

olasank [31]

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset Cost Adjusted Basis

--------------------------------------------------

Skidder 230,000 40,000

Driller 120,000 60,000

Platform 620,000 0

-------------------------------------------------

Total 970,000 100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset = value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

Skidder = 300.000 * 40.000/100.000 = 120.000

Driller = 300.000*60.000/100.000 = 180.000

Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

= 300.000 - (40.000 + 60.000 + 0)

= 200.000

6 0

3 years ago

The following information is available for Armstrong Company: Net income $450 Increase in plant and equip. $170 Depreciation exp

ad-work [718]

Answer:

$505

Explanation:

Armstrong Company

Cash flow from operating activities

Adjustments to reconcile net income to operating cash flow.

Net income

$450

Less : Increase in plant and equipment

($170)

Add : Depreciation expenses

$80

Add : Payment of dividends

$10

Add : Decrease in accounts receivable

$20

Add : Increase in long term debt

$100

Less : Increase in Inventories

($15)

Add : Decrease in Account payable $30

Net Cash flow from operating activities

$505

8 0

3 years ago

Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has bud

beks73 [17]

Answer:

Results are below.

Explanation:

First, we need to calculate the number of processing hours:

Processing hours= (0.25*3,000) + (0.1*6,000) + (0.3*3,500)

Processing hours= 750 + 600 + 1,050

Processing hours= 2,400

Now, we can calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 207,000 / 2,400

Predetermined manufacturing overhead rate=$86.25 per processing hour

To allocate overhead, we need to use the following formula:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Tortilla chips= 86.25*75= 64,687.5

Potato chips= 600*86.25= 51,750

Pretzels= 86.25*1,050= 90,562.5

Finally, the unitary cost:

Tortilla chips= 64,687.5 / 3,000= $21.56

Potato chips= 51,750 / 6,000= $8.63

Pretzels= 90,562.5 / 3,500= $25.88

8 0

3 years ago

PLEASE HELP ASAP

ioda

It would have to be E

3 0

3 years ago

Read 2 more answers

On September 11, 2016, Home Store sells a mower for $450 with a one-year warranty that covers parts. Warranty expense is estimat

xeze [42]

Answer:

Date Accounts Titles and Explanations Debit Credit

Sept, 11 Cash $450

2016 Sales $450

(To record the Cash Sales)

Sept, 11 Warranty Expenses $40.50

2016 ($450 x 9%)

Estimated Warranty Payable $40.50

(To record the Warranty Expenses)

July, 24 Estimated Warranty Payable $32

2017 Repairs Parts Inventory $32

(To record the material taken from Inventory)

6 0

3 years ago