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Tanzania [10]
3 years ago
6

While the evidence suggests that over long periods of time that stocks will outperform bonds, individuals with a long-term inves

tment horizon may still choose to invest in bonds. Is this rational behavior? Why or why not?
Business
1 answer:
Scrat [10]3 years ago
4 0

Answer:

Stocks and Bonds

Yes.  It is a rational behavior for individuals with a long-term investment horizon to choose to invest in bonds rather than investing in stocks despite the overwhelming "evidence that suggests that over long periods of time stocks still outperform bonds."

Rational behavior involves making rational choices that provide optimal levels of benefit or utility for the individual. People who make rational choices would rather choose bonds with lower risks and returns than stocks with higher risks and returns.

Explanation:

Every rational investor would prefer to reduce her risk exposure instead of increasing it.  Every investor is also aware that  investments with higher risks attract higher returns.  However, determining the certainty of the returns is difficult.

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A monopolistically competitive industry is characterized by a. many firms selling products that are similar but not identical. b
UNO [17]

Answer:

A monopolistically competitive industry is characterized by

a. many firms selling products that are similar but not identical.

Explanation:

A monopolistic competition is a form of imperfect competition with many firms operating in the industry.  For such an industry, the goods or services are differentiated, such that one firm's goods or services can easily be associated with the producer.  This is mostly achieved through branding and the use of trademarks.  Each firm, therefore, competes with many other competitors, but they limit their competition by differentiating their products so that consumers would have preference for one against the other, depending on their perceived value.

7 0
3 years ago
"Quill Industries uses the aging of accounts receivable method. Its estimate of uncollectible receivables resulting from the agi
vlabodo [156]

Answer:

$23,300

Explanation:

Bad debt Expense will be calculated using the account receivable method. The expense is calculated using the account receivable aging analysis.

Closing Value of the Allowance for Doubtful Accounts will be as follow

As Allowance for Doubtful Accounts already have Credit balance of $12,200, we need to adjust the remainder to make the closing credit balance of Allowance for Doubtful Accounts $35,500 at the year end.

Adjustment Value = $35,500 + $12,200 = $23,300

This Expense will be recorded as follow

Dr.   Bad Debt Expense                         $23,300

Cr.   Allowance for Doubtful Accounts $23,300

3 0
3 years ago
Lower-of-Cost-or-Market Inventory On the basis of the following data, determine the value of the inventory at the lower of cost
ANTONII [103]

In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)

Explanation:

To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category

Profit margin =  (market value - cost price) = Profit ÷ cost price × 100

Class 1:

Model A

46 $116 $139  

Profit margin = (139 - 116) = 23  ÷ 116 × 100 = 19.32%

Model B

49 243 239

Profit margin =  (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)

Model C

43 233 252

Profit margin =   (252 - 233) = 19 ÷ 233 × 100 =  8.15%

Class 2:

Model D

37 79 98

Profit margin =  (98 - 79) = 19 ÷ 79 × 100 =  24%

Model E

6 151 130

Profit margin =  (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)

Result

In class 1

Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%

In class 2

Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%

Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost

3 0
3 years ago
Go Blue Retail Store collected $12,000 of its accounts receivable. The expanded accounting equation changes include which of the
oksano4ka [1.4K]
The answer is C.....
3 0
3 years ago
Read 2 more answers
Skipper Company manufactures toy boats and uses an activitybased costing system. The following information is provided for the m
zalisa [80]

Answer:

$ 22.97

Explanation:

Calculation for the total manufacturing cost per boat

First step is to Calculate the Activity rates

Activity Cost Pool Activity driver Overhead Cost (A) Expected Activity (B) Activity rate (A/B)

Materials handling Number of Part

$ 3,300÷ 3000 =$ 1.10 Per Part

Assembling Number of Part

$ 4,800÷3000 =$ 1.60 Per Part

Packaging Number of Boat

$ 6,000÷ 1300 =$ 4.62 Per Boat

Second step is to Calculate the Cost assigned to Boat

Activity name Activity Rates Activity ABC Cost

(A) (B) (A x B)

Materials handling

$ 1.10 × 4.00=$ 4.40

Assembling

$ 1.60 × 4.00 =$ 6.40

Packaging

$ 4.62 × 1.00 = $ 4.62

Total Overheads assigned per boat $ 15.42

($4.40+$6.40+$4.62)

Last step is to Calculate for the total manufacturing cost per boat

Boat

Direct material $ 7.55

Direct labor $0

Overheads $15.42

Total Cost per unit $ 22.97

($7.55+$15.42)

Therefore the total manufacturing cost per boat is $ 22.97

8 0
3 years ago
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