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3 years ago

When Ian experiences diminishing marginal utility when buying shirts,

Business

1 answer:

serg [7]3 years ago

4 0

Answer:

e. the personal value of each additional shirt he purchases starts to fall.

Explanation:

Diminishing marginal utility means that as the number of goods that you consume increases, the utility received from consuming every additional unit decreases. For example, if you are very thirsty and drink a glass of Coke, the first glass will yield a very high utility. But as you consume more and more Coke, the following glasses will yield lower utility.

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Croft Corporation produces a single product. Last year, the company had a net operating income of $89,000 using absorption costi

Maksim231197 [3]

Answer:

21,200 units

Explanation:

For determining the sales, first we have to compute the net operating income difference which is shown below:

= Net operating income under absorption costing - Net operating income under variable costing

= $89,000 - $74,600

= $14,400

Now the inventory units increased by

= $14,400 ÷ 12 per unit

= 1,200 units

And, the production units are 22,400

So, the sales would be

= 22,400 units - 1,200 units

= 21,200 units

This is the answer and the same is not provided in the given options

4 0

2 years ago

Which of the following statements about globalization is NOT true?

PtichkaEL [24]

A globalization change in a relationship affecting a government

8 0

3 years ago

Identify which control activity is violated in each of the following situations, and explain how the situation creates an opport

Inessa05 [86]

Answer:

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

⇒ documentation procedures

Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?

2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.

⇒ segregation of duties

One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.

3. Several clerks at Great Foods use the same cash register drawer

⇒ establishment of responsibility

If everyone is allowed to collect money, no one can be responsible for any loss.

6 0

3 years ago

The goal of expansionary fiscal policy is______.

sp2606 [1]

Answer:

C. to increase aggregate demand.

Explanation:

Aggregate demand describes the total amount of all finished goods and services demanded in a country in a period. Aggregate is a reflection on the purchasing power of consumers in an economy. A decrease in aggregate demand implies the economic power of consumers has decreased. A high inflation rate, low income, or high rate of unemployment can cause the aggregated demand to declines.

Expansionary fiscal policies are government actions of reducing taxes or increasing expenditure on stimulus programs. Reducing taxes increases the disposable income of consumers. It encourages firms to expand their businesses. An increase in disposable means consumers will have more money to spend, which boosts aggregate demand. If the government spends money on stimulus programs such as the construction of roads and public buildings, it creates employment and income for more people.

6 0

3 years ago

Langley Clinics, Inc buys $400,000 in medical supplies each year (at gross prices) from its major suppliers, consolidated servic

SOVA2 [1]

Answer:

a) Langley buys $400,000 (gross) in medical supplies a year from Consolidated. The net purchases (the true cost of the supplies) is only 0.975 x $400,000 = $390,000 because they can be bought at a 2.5 percent discount when payment is made within 10 days. On a daily basis, Langley purchases $390,000 / 360 = $1,083.33. If Langley takes the free credit and pays on Day 10, its payables from Consolidated would total 10 x $1,083.33 = $10,833.33, which is the amount of free credit.

b. If Langley pays after 45 days, its accounts payable will increase to 45 x $1,083.33 = $48,750. Thus, the amount of costly trade credit is Total trade credit – Free trade credit = $48,750 – $10,833.33 = $37,916.67.

c. Langley is foregoing a 2.5 percent discount on its $400,000 of purchases, so the dollar cost of the additional (costly) trade credit is 0.025 x $400,000 = $10,000. Dividing this dollar cost by the amount of additional credit provides the approximate percentage cost of the costly trade credit:

$10,000

Approximate percentage cost = ──────── = 0.264 = 26.4%.

$37,916.67

Of course, the approximate cost could have been found by applying the following formula:

Discount percent 360

Approximate % cost = ────────────── = ────────────────────────

100 - Discount percent Days credit received - Discount period

2.5 360

= ─── = ─── = 0.264 = 26.4%.

97.5 35

d. If Langley can obtain a bank loan for less than 26.4 percent cost, including interest cost and fees, it should replace the costly credit ($37,916.67) with a bank loan.

e. As indicated in Part d, only the costly trade credit should be replaced. Langley should always take the $10,033.33 of free trade credit.

7 0

3 years ago