What must businesses do in order to comply with financial regulations and laws?.

When a firm is operating at an efficient scale, a. average variable cost is minimized. b. average fixed cost is minimized. c. av

Klio2033 [76]

Answer:

C

Explanation:

The efficient scale is were firm try to operate because is the lowest scale or the lowest point of the long run average cost to achieve economies of scale. Economies of scale is when a firm operates at a point in which it is efficient (produces at the minimum cost) and the price of its good is competitive. The figure shows the minimum efficient scale point which is placed on the LRAC (Long-Run-Avergare-Cost). Before that point the firm is producing at a competitive price but not at the minimum cost. After that point it is producing at a competitive price but at a cost that is too low.

3 0

3 years ago

Which of the following is not a limitation of return on investment?

iogann1982 [59]

Answer: D. ROI is a commonly used measure for financial performance.

Explanation:

Return on investment is simply a ratio that exists between the net profit and the cost of investment. It should be noted that a high return on investment simply means that the gain on an investment compares favourably to the cost incurred for the investment. Return on investment is used to determine an investment's efficiency.

Of the options given, the one that is not a limitation of return on investment is ROI is a commonly used measure for financial performance. This is an advantage of using ROI.

3 0

4 years ago

Allocating funds to promotion whereby the company determines its promotion objectives, outlines the tasks to accomplish these ob

ikadub [295]

Answer: objective and task budgeting

Explanation:

Objective and task budgeting is a method used whereby the marketer decides the objective that will need to be accomplished and the necessary tasks that are required to to achieve such objectives.

This csn consist of the allocation of funds to promotion whereby the company determines its promotion objectives, outlining the tasks to accomplish these objectives, and also determining the promotion cost of performing these tasks.

4 0

4 years ago

Hernandez Company had the following transactions during 2020, its first year in business:

Trava [24]

Question Completion:

Prepare Journal Entries.

Answer:

Hernandez Company

Journal Entries:

January 2 Debit Cash $1,512,000

Credit Common stock $630,000

Credit Additional Paid-in Capital-Common stock $882,000

To record the issuance of 42,000 shares of $15 par common stock for $36 per share.

April 3 Debit Cash $ 776,000

Credit Preferred stock $560,000

Credit Additional Paid-in Capital-Preferred stock $216,000

To record the issuance of 8,000 shares of $70 par preferred stock for $97 per share.

October 6 Debit Treasury Stock $30,000

Debit Additional Paid-in Capital-Common stock $28,000

Credit Cash $58,000

To record the repurchase of 2,000 shares of treasury stock for $29 per share.

December 9 Debit Cash $3,850

Credit Treasury stock $1,650

Credit Additional Paid-in Capital-Common stock $2,200

To record the reissuance of 110 shares of treasury stock for $35 per share.

Explanation:

a) Data and Analysis:

January 2 Cash $1,512,000 Common stock $630,000 Additional Paid-in Capital-Common stock $882,000

issuance of 42,000 shares of $15 par common stock for $36 per share.

April 3 Cash $ 776,000 Preferred stock $560,000 Additional Paid-in Capital-Preferred stock $216,000

issuance of 8,000 shares of $70 par preferred stock for $97 per share.

October 6 Treasury Stock $30,000 Additional Paid-in Capital-Common stock $28,000 Cash $58,000

repurchase of 2,000 shares of treasury stock for $29 per share.

December 9 Cash $3,850 Treasury stock $1,650 Additional Paid-in Capital-Common stock $2,200

re-issue of 110 shares of treasury stock for $35 per share.

4 0

3 years ago

Current GAAP requires the allocation of total share-based compensation cost to expense on a straight-line basis over the vesting

Lisa [10]

Answer:

The correct answer is True.

Explanation:

Cost allocations move costs and revenues between cost types, cost centers and cost objects. You can define as many assignments as you need. Each assignment consists of:

- An origin assignment.

- One or more assignment destinations.

The allocation source establishes what costs should be allocated, and the allocation destinations determine where the costs should be allocated. For example, an origin of allocation may be the costs of the type of cost Electricity and Heating. Assign all electricity and heating costs to three cost centers: Workshop, Production and Sales. These cost centers are the allocation destinations.

For each assignment source, you can define an assignment level, a validity period and a variant as a group identifier. You can use a batch job to define filters to select assignment definitions and then run cost assignments automatically.

4 0

3 years ago