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3 years ago

State whether true or false and briefly explain why:

Business

1 answer:

gayaneshka [121]3 years ago

4 0

Answer:

Stating True or False

P > MC, so producing more would mean that the marginal cost increases to match the market price. FALSE

P = AC, so producing more would mean that the average cost would exceed the price reducing profits. FALSE

P = MC, so producing more would mean that the marginal cost would exceed the price reducing profits. TRUE

MR < MC, so producing more would mean that the marginal cost increases to match the market price. FALSE

Explanation:

All profit-maximizing producers accept a market price (P) that is equal to the marginal cost (MC), i.e. (P = MC). At this point, the market price does not exceed the marginal costs (costs of factors of production). When = P > MC, it shows that the benefits of producing more goods exceed the production costs, to the benefit of the society. However, if P < MC, then the social costs of producing the goods exceed the social benefits, signalling that the economy should produce less.

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Which is not an area of significant difference between manufacturing and service operations?a) forecasting demand b) uniformity

ioda

Answer:

Letter a is correct. Forecasting demand.

Explanation:

The correct alternative is forecasting demand, because it is only possible to predict future demand for the manufacture of some good, according to the statistical data of the service provided, so this is an area between manufacturing and related services.

Demand forecasting is a process of finding statistical and economic data that assists in future organizational control, such as sales and cash flow planning, inventory and purchasing control, production planning and others.

By analyzing the past scenario it is possible to predict variables that will impact the future of the business, so for the forecast to be carried out effectively, some steps must be considered:

Data collection and analysis ;
Objective identification of the applied model ;
Forecasting techniques;
Monitoring .

Demand forecasting technique, when well planned and executed, guarantees several strategic and competitive benefits for the company, besides being an essential instrument in the decision making process.

7 0

3 years ago

Delta Diamonds had 5 diamonds available for sale this year: 1 purchased June 1 for $500; 2 purchased July 9 for $550 each; and 2

zhenek [66]

Answer:

$600

Explanation:

Data provided in the question:

Number of diamonds with delta = 5

1 diamond purchased on June 1 for $500

2 diamond purchased on July 9 for $550 each

2 diamond purchased on September 23 for $600 each

Now,

under the LIFO (Last In First Out) , the unit purchased last will be sold first

Therefore,

Before December 24 t, last purchase was 2 diamond purchased on September 23 for $600 each

Hence,

The Cost of Goods Sold is $600

3 0

3 years ago

The owner of a bicycle repair shop forecasts revenues of $236,000 a year. Variable costs will be $69,000, and rental costs for t

maria [59]

Answer:

A. $71,200

Bi)$100,200

Bii)$100,200

Biii)$100,200

Explanation:

A. Preparation of an income statement for the shop based on thee estimates

INCOME STATEMENT

Revenues $236,000

Expenses:

Variable costs $69,000

Rental cost $49,000

Depreciation $29,000

Total Expenses $147,000

Tax profit $89,000

($236,000-$147,000)

Less Income Tax (at 20%) $17,800

(20%*$89,000)

Net Income $71,200

($89,000-$17,800)

Therefore Net Income will be $71,200

bi) Calculation for the operating cash flow by using dollars in minus dollars out method

Using this formula

Operating cash flow=Revenue-Cash expenses-Taxes

Let plug in the formula

Operating cash flow=$236,000-($69,000+$49,000)-$17,800

Operating cash flow=$236,000-$118,000-$17,800

Operating cash flow=$100,200

Therefore the operating cash flow by using dollars in minus dollars out method will be $100,200

bii) Calculation of the operating cash flow by using adjusted accounting profits,

Adjusted accounting profit=$71,200+$29,000

Adjusted accounting profits=$100,200

Therefore the operating cash flow by using adjusted accounting profits will be $100,200

biii)Calculate the operating cash flow by using after tax operating cash flow

After tax operating cash flow=[$236,000-($69,000+$49,000)]*(1-0.20)+(0.20*$29,000)

After tax operating cash flow=($236,000-$118,000)*0.80+$5,800

After tax operating cash flow=($118,000*0.80)+$5,800

After tax operating cash flow=$94,400+$5,800

After tax operating cash flow=$100,200

Therefore the operating cash flow by using after tax operating cash flow will be $100,200

4 0

3 years ago

Keon, vice-president of human resources for a large manufacturing firm, wants to keep the reward system membership-based instead

Sliva [168]

Answer:

The correct answer is The criteria area easier to measure with the membership-based system.

Explanation:

Obviously by changing, for example, the money for memberships, companies save in some way the expense that would be to measure the performance of employees one by one. If the organization is measured globally, or perhaps by areas, there will be an overview of the fulfillment or not of the proposed objectives.

A membership system allows employees to be recognized in the same way, without individualism prevailing, leading to better rapport and teamwork.

5 0

4 years ago

You purchased a stock at a price of $54.24. The stock paid a dividend of $1.39 per share and the stock price at the end of the y

Dafna1 [17]

Answer:

Capital loss = $(5.46)

Explanation:

Return on investment would be the proportion of the amount invested that is earned as profit.

Profit here includes dividends earned plus capital gains less broker's commission.

Capital gains/(loss) represents an appreciation/(depreciation) in the stock value. It is usually measures by the change in the stock value over the investment period under focus

Capital gain/loss on stock = stock price at the end - stock price at the beginning

Stock price at the end= 48.78

Stock price at the beginning = 54.24

Capital loss = (48.78 - 54.24) = $(5.46)

The dividend would not be included simply it is not a capital item

Capital loss = $(5.46)

7 0

3 years ago