Answer:Accounting profit equals total revenue minus accounting costs
Explanation: Accounting profits are actual profits a company makes during a particular accounting year and it can be calculated using the company's total revenue (sales) minus the company's costs ( costs of sales (purchases) plus operating costs) for that particular period under review.
Answer: It should shot down immediately.
Explanation:
If the market price is equal to average cost at the profit-maximizing level of output, then the firm is making zero profits. If the market price that a perfectly competitive firm faces is below average variable cost at the profit-maximizing quantity of output, then the firm should shut down operations immediately.
Answer:
D. obtaining a commitment from the customer.
Explanation:
Closing a sale is the equivalent of making a sale.
To consider a sale done, you need to have a commitment from the customer to buy the product/service you're offering. That usually mean receiving money or at least firming a binding contract.
None of the other options is describing a complete sale. A and C are potential leads/sales... while B if of course the opposite of closing a sale.
Answer:
Order size = 200 units
Number of order = 5 times
Explanation:
<em>The number of order per year will be equal to the Annual demand divided by the EOQ.</em>
<em>No of orders = Annual Demand / EOQ</em>
Economic order quantity (EOQ)
The Economic Order Quantity (EOQ) is the order size that minimizes the balance of ordering cost and holding cost. At the EOQ, the carrying cost is equal to the holding cost.
It is computed using he formulae below
EOQ = √(2× Co× D)/Ch
Ch- Carrying cost per unit per annum- $1
Co- Ordering cost per order -20
EOQ =√(2× 20× 1000)/1
= 200 units
Order size = 200 units
Number of order = 1000/200 = 5 times
Answer:
A - shifting the aggregate demand curve to the left, reducing real GDP and lowering the price level
D - consumption, investment, and net exports decrease; aggregate demand decreases.
Explanation:
If interest rates increase, it becomes more expensive to borrow money (since there is a larger amount to be paid back on top of the value of the loan) and more beneficial to save money (since banks will pay more for saving). This means that consumers are less likely to take out loans and more likely to store their money in the bank, leading to a reduction in consumption—less consumer spending, more saving. Likewise with firms, which will be less likely to invest in new capital (because borrowing funds to buy it costs more) and more likely to save profits. This reduction in consumption and investment means that aggregate demand falls, represented in a diagram by a shift to the left.
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