Answer:
Margin of safety = 3190.922902 units rounded off to 3191 units
Explanation:
Margin of safety is the cushion or extra number of units that the business sells over the break even point in units. The break even point is the point where total revenue equals total cost and the business earns no profit or no loss. To calculate the margin of safety in units, we deduct the break even number of units from the budgeted number of units or sales.
Margin of safety = Budgeted units - Break even number of units
First we need to calculate the break even in units. The formula for break even in units is,
Break even in units = Fixed cost / (Selling price per unit - Variable cost per unit)
Break even in units = 9376 / (6.74 - 2.33)
Break even in units = 2126.077098 rounded off to 2126 units
Margin of safety = 5317 - 2126.077098
Margin of safety = 3190.922902 units rounded off to 3191 units
1.) Out of the choices given here, a computer game that can be purchased online and played right away has good time utility. The other choices didn't seem to be a good fit for this particular question. The correct answer is D.
2.) Hours of labor or the number of workers are common ways of measuring a company's division of labor. The correct answer is A, division of labor.
Answer: Please refer to Explanation
Explanation:
A financial asset is a non-physical asset that that gets it's value from a contract that was signed by the parties involved. Financial assets include Bonds, stocks and even cash amongst others.
Real Assets on the other hand are physical assets that can be seen and hence have an inherent value. Examples include buildings and cars.
a. Toyota <u>creates</u> a <u>real asset</u>- the factory. The loan is a <u>financial asset </u>that is <u>created</u> in the transaction.
The factory becomes a real Asset that is tangible and has an inherent value. The loan was created by an agreement between Toyota and the bank and so is a Financial Asset.
b. When the loan is repaid, the <u>financial</u> asset is <u>destroyed</u> but the <u>real</u> asset continues to exist.
When the loan is repaid, Toyota no longer owns that financial asset because it has gone back to the bank. However, the Real Asset which is the factory that they were able to build will remain with Toyota.
c. The cash is a <u>financial</u> asset that is traded in exchange for a <u>real</u> asset, inventory.
As already mentioned, cash is a financial asset. Inventory is a tangible substance with an inherent value not determined by a contract and so is a Physical Asset. Trading cash for Inventory is therefore trading a financial asset for a physical one.
Answer:
Chart of accounts.
Explanation:
Chart of account set up the codes which is used to determine the project cost. Under chart of account each account is assigned unique number and name. Example of chart of accounts include balance sheet accounts, asset accounts, liability accounts, revenue accounts, expenditure accounts, etc.
Chart of account is usually used by an organization to show that what amount of money is received or spent by each class of items. By segregating expenditure, revenues, liability, assets, etc. it provide better understanding to an organization about financial health.
It is false that evaluating an advertising campaign is the simplest part of the advertising process because the factors that determine the effectiveness of an ad are limited and clear.
Answer: Option B
<u>Explanation:</u>
To make a product famous that has been manufactured by a company, to make it reach to the consumers and to make them know about it, advertising is one of the most important elements. It focuses on the features, quality, prices etc of the product.
While evaluating the campaign of the advertisement, there are a lot many factors that are to be kept in mind by the company so that the consumers can know about the product.
