Price, Supply and Demand. Amonopoly's potential to raise prices indefinitely is its most critical detriment to consumers.
Answer:
Option A is the correct answer,no adjustment is needed.
Explanation:
When related companies sell to each other,the sales transaction is not sales in actual sense,as it is likened to the left hand of an individual exchanging cash with the right hand,in other words, the cash is still owned by the same person.
The same concept is applicable to subsidiaries and parent,the sales recorded from a group perspective is when they sold to external third parties.
When sales happen between related companies, a provision for unrealized profits has to be made to the tune of inventory purchased from related companies not yet sold externally,as the whole of the goods have been to third parties, no such provision or adjustment is required.
The quantity supplied at this level of price is less than the quantity demanded and therefore the market is in shortage situation.
<u>Explanation:</u>
If the current price of the market is above the price P0, then the level of the quantity supplied of the good is less than the level of quantity demanded of that good at this level. With the less quantity supplied, there will be a situation of shortage of the quantity of goods in the market.
Answer: a.results in more accurate product costs
Explanation:
In a company that has multiple departments, using multiple overhead rates can help give a clearer view of product costs as costs are apportioned based on the activities in a department.
For example, in a Manufacturing company with a shipping department, you would find that it would be more accurate if for instance, machine hours are used in the Manufacturing department as opposed to labour hours being used in the Shipping department.
This method therefore gives a more accurate measure of the cost of producing different goods in a company which will go further to enable management to price products appropriately as well.
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