Divisional structures arrange people with diverse occupational specialties are put together in formal groups by similar products or services, customers or clients, or geographic regions.
Answer:
It will generate a financial disadvantage for 44,065 dollar to discontinued the cup division. This division generates a positive contribution which, if discontinued will not help to absorp the common fixed cost fo the firm and move the burden entirely to Bowls Plates division making the profit to decrease.
Explanation:
![\left[\begin{array}{cccc}&$Continued&$Discontinued&$Differential\\$sales&105700&0&(105700)\\$variable cost&-61635&0&61635\\$contribution&44065&0&(44065)\\$fixed cost&-23465&-23465&0\\$Result&20600&-23465&(44065)\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccc%7D%26%24Continued%26%24Discontinued%26%24Differential%5C%5C%24sales%26105700%260%26%28105700%29%5C%5C%24variable%20cost%26-61635%260%2661635%5C%5C%24contribution%2644065%260%26%2844065%29%5C%5C%24fixed%20cost%26-23465%26-23465%260%5C%5C%24Result%2620600%26-23465%26%2844065%29%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Fixed cost:
42,300 x 15% + 42,800 x 40% = 23,465
Variable cost:
42,300 x (1 - 15%) + 42,800 x (1 - 40%) = 61,635
The differencial will be discontinued less continued column
If the result is positive there is a cost saving if discontinued
if negative there is a loss in contribution if discontinued
Answer:
False
Explanation:
The trial balance is prepared at the end of a counting period after all the accounts have been closed. The trial balance captures all the debits on one side and credits on the other. If the trial balance does not balance, it signifies errors in the general ledger. A balanced trial balance does not guarantee the absence of errors.
In preparing a trial balance, accountants usually follow the order of accounts as they follow each other as per the general ledger. It is not a requirement that either debits or credits come first.
Answer:
Productive (technical) inefficiency.
Explanation:
A market failure can be defined as a situation in which the market fails to produce an efficient level of productivity or output that is required to meet consumer demand.
This ultimately implies that, a market failure arises when there is inefficiency in the distribution or allocation of goods and services in a free market.
In Economics, there are two types of inefficiency associated with the production of goods and services, these includes;
1. Allocative inefficiency: it occurs when businesses do not maximise output from the given inputs. Thus, it arises when businesses fail to increase the level of their production or productivity from a number of given inputs.
In conclusion, allocative inefficiency typically occurs when the price of a good or service isn't equal to its marginal cost i.e P ≠ MC.
2. Productive (technical) inefficiency: it occurs when businesses produce goods and services that consumers do not want. This is typically as a result of the incorrect and inefficient allocation of scarce resources by a business firm or entity.
