"A high-risk loan is a financing or credit product that is considered more likely to default, compared to other, more conventional loans."
I hope this helps ^-^
Answer:
D. a society's major productive resources, such as land and other natural resources, labor, technology, and capital
Explanation:
The factors of production include all the inputs from which a good/service can be made or created. Land and natural resources are the tangible resources from which we create goods and where we execute operations regarding production. Technology and capital are essential resources to gain the needed machinery and expertise for production after the Industrial Revolution.
Answer:
Hie, the question has missing amounts / account balances relating to the following Accounts<em> Prepaid Insurance</em>, <em>Salaries and Wages Expense</em> and <em>Depreciation Expense</em>. However, both the debits and credit totals must add up to $292 as only debits are missing.
Explained and illustrated below is the approach to take on this question.
A trial balance is a list of balances (debit or credit) extracted from ledger accounts.
<u>Adjusted Trial Balance At December 31</u>
Debits Credit
$000 $000
Cash 58
Accounts Receivable 7
Prepaid Insurance (missing)
Equipment 120
Accumulated Depreciation 8
Accounts Payable 7
Common Stock 116
Retained Earnings 17
Sales Revenue 131
Insurance Expense 9
Salaries and Wages Expense (missing)
Supplies Expense 46
Depreciation Expense (missing)
Salaries and Wages Payable 11
Income Tax Expense
Income Tax Payable 13
Totals 292 292
Question
Suppose Country Cafe restaurant is considering whether to (1) bake bread for its restaurant in-house or (2) buy the bread from a local bakery. The chef estimates that variable costs of making each loaf include $ 0.52 of ingredients, $ 0.23 of variable overhead (electricity to run the oven), and $ 0.78 of direct labor for kneading and forming the loaves. Allocating fixed overhead (depreciation on the kitchen equipment and building) based on direct labor, Country Cafe assigns $ 1.04 of fixed overhead per loaf. None of the fixed costs are avoidable. The local bakery would charge $ 1.74 per loaf.
- What is the absorption cost of making the bread
- What is the variable cost
- Should Country make the bread or buy
- What other factors should be considered
Answer
- Absorption costing cost per unit= $2.57
- Variable costing cost per unit=1.53
- It will be cheaper for Country Cafe to produce internally than to buy from outside as it will save $0.21 per unit of bread
- See explanation for other factors
Explanation:
Absorption cost= Direct cost + Variable overhead + Fixed overhead
= 0.52 + 0.23+ 0.78 + 1.04
= $2.57
Variable cost of making the loaf= Direct cost + Variable overhead
=0.52 + 0.23+ 0.78 = $1.53
$
Variable cost of making 1.53
External purchase price <u>1.74</u>
Extra cost of external purchase per unit <u>0.21
</u>
It will be cheaper for Country Cafe to produce internally that to buy from outside as it will save $0.21 per unit of bread
Non-Financial factors
Product Quality. Country Cafe needs to be sure that the quality of bread to be provided wont be undermined. should it decides to buy.
Trade secret: is there a guarantee that the contractor would not divulge or abuse the privileged information about the ingredients to be mixed and some other trade secrets
Delivery : Reliable and timely delivery are very important. Would the external supplier be able to meet expectations?
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It is a settlement agreement, where the defendant could pay the plaintiff an agreed amount to settle the dispute.
