Answer:
b. An increase of $15 million
Explanation:
The computation of the cash impact of the change in working capital is shown below:
As we know that
Working capital = Current assets - current liabilities
So, the change in working capital is
= Increase in current assets - increased in current liabilities
= $40 million - $25 million
= $15 million
Hence, the b option is correct
The correct option for The firm enjoys economies of scope.
economies of scope exist if C(Q1, 0) + C(0, Q2) > C (Q1, Q2) (10 + 5Q1) + (10 + 5Q2) > 10 + 5Q1 + 5Q2 - 0.2Q12Q2.
Economies of scope is an economic theory stating that the average total cost of production decrease as a result of increasing the number of different goods produced. For example, a gas station that sells gasoline can sell soda, milk, baked goods, etc.
Economies of scope is a financial precept wherein a commercial enterprise's unit value to supply a product will decline because the form of its products will increase. In different words, the extra one of kind-but-comparable goods you produce, the lower the total cost to provide each one may be.
Your question is incomplete. Please read below for the missing content.
A firm can produce two products with the cost function C(Q1, Q2) = 10 + 5Q1 + 5Q2 - 0.2Q1Q2. The firm enjoys:
A. economies of scale in the two products separately.
B. economies of scope.
C. cost complementarity.
D. economies of scale in the two products separately and cost complementarity.
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Answer:
d. dismissing all managers who fail to achieve operational goals specified in the budget
Explanation:
The budget, no matter how well it's done, It's a forecast.
Price can change without the company being able to intervene, the same goes for consumer demand, foreign currency rates changes, and other variables in the budget.
Having that in mind, the accounting can measure the variance and check the efficiency and price influence in the result below expected.
Therefore, dismiss immediately after not achieving a goal is not the purpose of a budget
<span>Should begin with immediate and effective comments/responses from all employees. There should then be meetings held to discuss the findings and to elaborate on what can be done to begin forming an effective communications program for all employees.</span>
Answer:
Explanation:
Sales revenue to be reported - $1,000,000
Warranty expense - $40,000
Unearned warranty revenue - $12,000
Cash = 1,000,000+12,000 = $1,012,000
Warranty liability - $40,000
