Answer:
The correct answer is D. demand and the nature of the market.
Explanation:
External factors: Nature of the market and demand
The price-demand relationship varies in different market classes, and how the way the buyer perceives the price affects the pricing decision. 4 types of markets
.
- If there is pure competition: merchants in these markets do not devote much time to marketing strategy. There is no charge for the products. It is standardized.
- In monopolistic competition: it is within a price range, it can vary by quality, or the services that accompany it.
- In oligopolistic competition: they can be uniform products or not, they are constantly watched over the competition. If prices rise, buyers will quickly change them as a supplier. There are few vendors and it costs others to enter.
- In a pure monopoly: a market formed by a single supplier, unregulated monopolies have the freedom to set their prices, however they do not take advantage of them for several reasons, not to attract competition, fear of regulation and to penetrate the market.
- Demand curve: curve that shows the number of units that the market will buy in a specific period at the different prices that could be charged.
- Price elasticity: Measurement of the sensitivity of demand between changes in the price. It is obtained with the following formula: Elasticity of demand with respect to price = percentage of change in the amount of demand Percentage of change in price
Answer:
Avoidable cost
Explanation:
An avoidable cost can be eliminated in a whole. Such a cost can be explained as an expense that would not happen if the specific activity is not done. These costs are relevant costs. A very good example of such a cost is labour cost. If there is a decision to stop a product line for example, all costs that have a relationship with this product line will also be stopped.
Answer: Pharaohs journal $
Date
December 31, 2017
StaffBonusexpensesDr384,900
Accruede liability Cr384,900
Narration. Staff bonus due as at date.
February 15,2018
Accrued liability Dr 384, 900
Bank Cr. 384,900
Narration. Payment of staff bonus due
Explanation:
In line with the acrual concept of recognising expenses at the period they are due for payment. The staff bonus will be recognized as an expense to the income statement in 2017 and accrued as liability in the balance sheet if it's not paid.
The payment in 2018 will be a debit to the liability account and credit to the cash or bank account.
Answer:
C. What you earn on this security would not change as a result of the change in interest rates.
Explanation:
The increase in the interest rate will decrease the price of the T-Bill if you want to sell it to another investor, but what you will earn with the security will not change at all. Your earnings in dollars = interest rate paid by the T-Bill or any other type of bond.
If you buy and sell securities for a living, then a change in the interest rates can make you win or lose money, since the price of the securities will increase or decrease. If interest rates increase, the price decreases. But if you invest on a security to earn the coupon or interest rate that it pays, a change in the price will not affect you because you already own it. The opportunity cost of holding the security might change, but the accounting revenues will not.
