Common between optimization using total value and optimization using marginal analysis is:
Both techniques require the conversion of all costs and benefits into a common unit of measurement.
What is the principle of optimization at the margin?
The Principle of Optimization at the Margin states that an optimal feasible alternative has the property that moving to it makes you better off and moving away from it makes you worse off.
Optimization using total value:
calculates the change in net benefits when switching from one. alternative to another.
optimization using marginal analysis:
calculates the net benefits of. different alternatives.
Total Value analysis :
has a wide range of applications. The analysis can be used to assess an organization's key impacts, or provide more detailed information such as an assessment of the life cycle impacts of a product.
marginal analysis:
is an examination of the additional benefits of an activity compared to the additional costs incurred by that same activity. Companies use marginal analysis as a decision-making tool to help them maximize their potential profits.
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Answer:
The total cost of the units completed and transferred out of the department was a.$259,700
Explanation:
The Concept of Equivalent units measures the units in terms of completion percentage in their inputs
<em>Calculation of Equivalent Units in Goods Finished and Transferred out of the department:</em>
<em>It is important to note that physical units finished and transfered were 53,000 units</em>
<em>Therefore equivalent units were</em>
Materials 100%× 53,000 = 53,000
Conversion Cost 100%× 53,000 = 53,000
<em>Calculation of total cost of the units completed and transferred out of the department</em>
Materials =53,000×$1.60 =$84,800
Conversion Cost = 53,000 ×$ 3.30 = $174,900
Total = $259,700
Answer:
Ending cash balance = $13,000
Explanation:
<em>A cash budget is statement that shows the estimated cash receipts and the estimated cash payments for a forth coming accounting period. In addition, it provides information about the expected cash balance for the period to which it relates.</em>
With help of a cash budget, a business can plan ahead for the usage of its surplus funds and how to finance its deficit cash position
Ending cash balance = Beginning cash balance + cash receipts - cash payment
= 3,000 + 50,000 - 40,000
Ending cash balance = $13,000
Answer:
b. decrease in the demand for the good.
Explanation:
An inferior good is a good whose demand falls when income increases and rises when income decreases.
A decrease in demand would lead to a leftward shift of the demand curve.
Inferior goods contrasts to a normal good. A normal good is a good whose demand increases when income rises and falls when income reduces.
Only a change in the price of a good leads to movement along the demand curve for that good.
I hope my answer helps you
Answer: Option A
Explanation: In simple words, substitution effect refers to the economic phenomenon which states that when price of one good rises the demand for the alternative of that particular good also rises. For example - coke and pepsi.
On the other hand, income effect states that when the price of a commodity rises, a number of consumers might find it hard to purchase due to the price exceeding their income power which further results in lower demand.
Hence from the above we can conclude that the correct option is A.
