Answer:
The days' sales uncollected ratio is used to: Estimate how much time is likely to pass before the amount of accounts receivable is received in cash
Explanation:
The days' sales uncollected ratio is an Asset Management ratio which calculates the length of time that it to collect credit from a customer and the first option is correct.
Economists measure the personal satisfaction derived from consuming goods and services with the concept of UTILITY. Utility refers to the total satisfaction derived from consuming a good or service. The utility of a good or service has direct influence on demand and therefore price of that product.
Answer:
Effect on income= 50*50= $2,500 increase
Explanation:
Giving the following information:
Model 26 has sales of 150 units with a contribution margin of $50 each.
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units*unitary contribution margin
Effect on income= 50*50= $2,500 increase
Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
Answer:
option A
Explanation:
The correct answer is option A.
When interest rates are declining , prices of the bond rise, but in this case the discount bonds will appreciate more than the premium bonds.
When interest rates fall it becomes very easier to borrow money and causing many companies to issue new bonds so that they can invest in new ventures.
A premium bond is a bond trading above its face value.
A bond issued at a discount has its market price below the face value.
