Answer:
$96,000
Explanation:
Particulars Amount
Opening inventory on 1st Jan $80,000
ADD: Purchases made $400,000
LESS: Cost of good sold <u>$384,000</u>
Closing inventory <u>$96,000</u>
<u></u>
<u>Workings</u>
Sales 480,000
Less: Mark up 480000*25/125 <u>96,000</u>
Cost of goods sold <u>$384,000</u>
Answer:
<u>Base the bid on the incremental costs incurred because the job will contribute toward the company's profit.</u>
Explanation:
Note that <em>the term having 'excess capacity' means the company has more than enough resources to bid for contacts.</em>
Since the company's overall goal is to make more profit it bidding strategy over its competitors should highlight that it has lower incremental (marginal) cost because of having full capacity in place. This fact would give the company an edge in the bid.
Answer:
The correct answer is option B.
Explanation:
Diseconomies of scale refer to the situation when a firm reaches that stage where increasing output causes the average cost of production to increase instead of decreasing.
This stage comes after the firm has reaped the economies of scale. Diseconomies can arise because of external as well as internal factors.
The main reason behind the diseconomies is that as the firms become increasingly large, it becomes difficult to efficiently coordinate production.
With large scale production, overcrowding of machines and workers create a mismatch and causes the cost to increase. Also with large scale communication between workers and departments become less effective. All these make it difficult to coordinate the production process.
<span>This allows for individuals to be encouraged to undertake certain tasks that will better themselves and society as a whole. These deductions make it more likely that a person will give to charities as well as contribute income toward their needs at the end of their careers.</span>