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1 year ago

A product with a low level of elasticity of demand has which feature?

1 answer:

6 0

C is the correct answer. A product with low elasticity of demand is most often a neccessity and price does not affect demand. The demand for a low elasticity of demand product changes very little over time

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Chip bought 10 shares of apex company for $40 each and later sold all of them at $45 each. this transaction resulted in what typ

polet [3.4K]

The correct answer is capital gain.

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3 years ago

Read 2 more answers

Croft Company sold land costing $10,000 for $12,000. In the investing activities section of the statement of cash flows, the com

Nezavi [6.7K]

Answer:

The answer is: B) An inflow of $12,000

Explanation:

Croft Company's cash flow should include the total cash inflow (the company received money) of $12,000. Even if the company bought the land the day before, paying the $10,000 yesterday, the cash flows are independent one from another. It should have recorded the outflow of $10,000 "yesterday".

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2 years ago

On May 1, 20X2, Bolt Corp. issued 11% bonds in the face amount of $1,000,000 that mature on May 1, 20X12. The bonds were issued

TiliK225 [7]

Answer:

B) 60,100

Explanation:

Since months have passed between the bond issuance and October 31. The amortization of the premium received depends on the amount of interest recognized. When the effective interest method is used, interest expense is based on the yield rate and the beginning book value.

interest expense = ($1,000,000 + $62,000) x 10% x 6/12 = $53,100

interest payable = $1,000,000 x 11% x 6/12 = $55,000

the difference (bond premium) = $55,000 - $53,100 = $1,900

unamortized bond premium = $62,000 - $1,900 = $60,100

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3 years ago

Suppose there is a simple index of three stocks, stock ABC, stock XYZ, and

ValentinkaMS [17]

Answer: -13.4%

Explanation:

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2 years ago

For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (F) or variab

Murrr4er [49]

Answer:

a. Depreciation on the building for administrative staff offices. (F) (P)

b. Cafeteria costs for the factory. (F) (M)

c. Overtime pay for assembly workers. (V) (M)

d. Transportation-in costs on materials purchased (V) (M)

e. Salaries of top executives in the company. (F) (P)

f. Sales commissions for sales personnel (V) (P)

g. Assembly line workers' wages (V) (M)

h. Controller's office rental. (F) (P)

i. Administrative support for sales supervisors (F) (P)

j Energy to run machines producing units of output in the factory. (V) (M)

Explanation:

Fixed Cost (F): Fixed cost is cost which is fixed and does not vary on the basis of production.

Variable Cost (V): Variable cost is cost which is not fixed and varies on the basis of production i.e. with the change in production, it also changes.

Product Cost (M): Product cost is a direct cost which is attributable directly in the creation of the product such as Direct Material, Direct Labour, etc.

Period Cost (P): A period cost is associated with the passage of time and is not included in the product cost, and is treated as an expense.

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3 years ago