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2 years ago

1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.

Business

1 answer:

Solnce55 [7]2 years ago

7 0

Law of diminishing return has a positive relationship with marginal cost

Explanation:

The law of diminishing returns implies that marginal cost will rise as output increases. Eventually, rising marginal cost will lead to a rise in average total cost.

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Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On J

jasenka [17]

Answer:

Wilson Inc. developed a business strategy that uses stock options as a major compensation incentive for its top executives. On January 1, 2021, 20 million options were granted, each giving the executive owning them the right to acquire five $1 par common shares. The exercise price is the market price on the grant dateâ€”$10 per share. Options vest on January 1, 2025. They cannot be exercised before that date and will expire on December 31, 2027. The fair value of the 20 million options, estimated by an appropriate option pricing model, is $40 per option. Ignore income tax.

Assume that all compensation expense from the stock options granted by Wilson already has been recorded. Further assume that 200,000 options expire in 2014 without being exercised. The journal entry to record this would include

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2 years ago

ABC C.o just completed an IPO with an investment bank on a firm-commitment basis. The firm issues 3 million shares of common sto

Brut [27]

Answer: $150,000,000

Explanation:

Question is:

What were the total proceeds from the common stock sale?

Total proceeds refer to the total amount that the sale of the stock generated. This means that you should not account for the underwriting fees as of yet but just the amount that came in.

= Number of shares sold * price per share

= 3,000,000 * 30

= $150,000,000

3 0

3 years ago

For each of the below, indicate where each item should be presented in the statement of cash flows (using the indirect method) u

Nataly_w [17]

Answer:

Blank 1 Blank 2

i. Depreciation expense A I

ii. Purchase of office equipment B D

iii. Decrease in accounts receivable A I

iv. Payment of cash dividends C D

v. Conversion of bonds into common stock D N

vi. Sold land and warehouse used in the corp. B I

vii. Gain on sale of land and warehouse in part vi. A D

viii. Issued common stock for cash C I

ix. Decrease in accounts payable A D

x. Increase in inventory A D

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf for the complete question.

How each of the item will appear in the the statement of cash flows (using the indirect method) is also provided below:

XYZ Company

Statement of Cash Flows (Indirect Method Format)

For the year...

Details $ $ 

Operating activities:

Net profit xxx

Adjustment to reconcile net income:

i. Depreciation expense xx

iii. Decrease in accounts receivable xx

vii. Gain on sale of land and warehouse in part vi. (xx)

ix. Decrease in accounts payable (xx)

x. Increase in inventory (xx)

Net cash flows from operating activities xxx

Investing activities:

ii. Purchase of office equipment (xx)

vi. Sold land and warehouse used in the corporation xx

Net cash flows from investing activities xxx

Financing activities:

iv. Payment of cash dividends (xx)

viii. Issued common stock for cash xx

Net cash flows from investing activities xxx

Net cash flow for the year xxx

Beginning cash balance xxx

Ending cash balance  xxx 

Note: The does not affect the cash flows statement:

v. Conversion of bonds into common stock

Download pdf

8 0

3 years ago

Select the correct answer. Which form of relativism states that people rely on their own standards of right and wrong when makin

Sladkaya [172]

E. Naive relativism

Explanation:

Naive relativism is based on the belief that humans ha e a deep seated view of what is right and what is wrong and can judge things by their own standards and make a decision.

These decisions are thus treated as truth derived from one's own self by the person who is concerned.

Naive relativism means that people also project their sense of right and wrong over others and sort of treat it as if it is universal.

7 0

3 years ago

Name three examples of firms conducting a cost leadership strategy that use no advertising. Should they start advertising? Why o

lianna [129]

Answer:

Walmart, MacDonald's and Payless ShoeSource.

Explanation: Cost Leadership is a business strategy where a comoffers products and services with acceptable quality and features to customers at a very low price.

Yes they should advertise their products and services, actually some of them use advertising slogans like "why pay more when you can pay less" "Always low prices" and " save money" Used by Walmart.

Advertising which is usually a way to tell people about what you do and why you should do it with them or through them, tells people about changes in their prices and introduction of new products.

Again, it will amaze you to know the a lot of people don't know about these companies yet. It helps them to reach more people and this in turn increases their sales.

5 0

3 years ago

Read 2 more answers

1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.​

1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.