Answer:
conspicuous consumption
Explanation:
The term conspicuous consumption was first introduced by a Norwegian-American economist and sociologist known as Thorstein Veblen in 1899. Conspicuous consumption refers to the practice whereby expensive goods or services are purchased by certain people at an outrageous cost just for the sake of display of flamboyant lifestyle or wealth for recognition purpose rather than for the very basic need the goods or services meet. It is simply an act of wasteful spending on goods or services that other people of that social class on a normal day cannot afford to pay such expensive price for.
The case of Hope is simply a kind of conspicuous consumption as she doesn’t mind emptying her credit card to afford the luxury of the new designer purse just for the purpose of public display among her social class.
Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that:_______.A. All three countries will grow at the same rate.
B. Country A will grow the fastest.
C. Country B will grow the fastest.
D. Country C will grow the fastest
Real GDP per person is $10,000 in Country A, $20,000 in Country B, and $30,000 in Country C. The saving rate increases by the same rate in all three countries. Other things equal, we would expect that: Country A will grow the fastest.
Explanation:Gross domestic product measure helps in determining the economic growth of a country for a given time period. Real GDP refers to the measure that shows the values of all the goods and services that are produced in a country for a specific time period and the measure will be a inflation adjusted one.
Thus real GDP can also be referred as constant price or inflation adjusted GDP. In the given example, the real GDP per person for three countries A,B and C are given whose value is $10,000, $20,000 and $30,000 respectively. There is a similar rate at which the savings gets increased. Other things are said to be equal and hence the result will be Country A will grow the fastest. This is because the real GDP is lesser when compared with other two countries.
East Corp., a calendar-year company, had sufficient retained earnings in 20X3 as a basis for dividends, but was temporarily short of cash. East declared a dividend of $100,000 on April 1, 20X3 and issued promissory notes to its stockholders in lieu of cash. The notes, which were dated April 1, 20X3, had a maturity date of March 31, 20X4 and an interest rate of 10%.How should East account for the scrip dividend and related interest?
A. Debit retained earnings for $110,000 on April 1, 20X3.
B. Debit retained earnings for $110,000 on March 31, 20X4.
C. Debit retained earnings for $100,000 on April 1, 20X3, and debit interest expense for $10,000 on March 31, 20X4.
D. Debit retained earnings for $100,000 on April 1, 20X3, and debit interest expense for $7,500 on December 31, 20X3.
Answer:
D. Debit retained earnings for $100,000 on April 1, 20X3, and debit interest expense for $7,500 on December 31, 20X3.
Explanation:
As East declared a dividend of $100,000 on April 1, 20X3, the journal entry to record the transaction -
Retained earnings debit $100,000
Dividend payable credit $100,000
As east issued promissory notes and the maturity date of March 31, 20X4, an interest rate of 10% arose. Seance the physical year ended in December 2004, the interest rate was accrued for December 2004 (9 months). The journal entry is
Interest expense debit $7,500 (Note - 1)
Interest payable credit $7,500
Calculation: $100,000 × 10% × (9 ÷ 12)
Calculation: $10,000 × (9 ÷ 12) = $7,500
Therefore, option D is correct.
Tying, resale price maintenance, or predatory pricing?
Coolaire is the only firm producing refrigerators. It costs $1,000 to produce a refrigerator, and Coolaire sells each refrigerator for $1,200. After Chillbox, a new firm with the same costs as Coolaire, enters the market for refrigerators, Coolaire starts selling its refrigerators for a price of $550.
Answer:
PREDATORY PRICING
Explanation:
Predatory pricing is the pricing of goods or services at such a low level that other firms cannot compete and are forced to leave the market.
Therefore if Coolaire is the only firm producing refrigerators that costs $1,000 to produce a refrigerator, and Coolaire sells each refrigerator for $1,200 and After Chillbox, a new firm with the same costs as Coolaire, enters the market for refrigerators, Then Coolaire starts selling its refrigerators for a price of $550; Then Coolaire is definitely practicing Predatory pricing
Which of the following costs would continue to be incurred even if a segment is eliminated? A. Direct fixed expenses B. Variable cost of goods sold C. Common fixed costs D. Variable selling and administrative expenses
Answer:
The correct answer is C. Common fixed costs.
Explanation:
A fixed cost is an expense that the company must incur, even if the company operates at medium speed, or does not, which is why they are so important in the financial structure of any company.
This is the case, for example, of payments such as leasing, since this, if nothing is sold, must be paid. It also happens with almost all labor payments, public services, insurance, etc.
Perhaps the main component of fixed costs is labor, therefore, it is not surprising that companies struggle every day for greater labor flexibility that allows them to convert those fixed costs into variables.
Middle-income countries, which include much of Latin America, Eastern Europe, and some countries in East Asia, have per capita GDP in the range of ___________.
Middle-income countries have a per capita GDP ranging between $1,025 and $12,475, with countries like Argentina, Brazil, and China falling in this category.
Explanation:Per capita Gross Domestic Product (GDP) is a measure used to rank countries into high, middle, or low-income groups. These calculations are important in studying and understanding global economies. Middle-income countries, like much of Latin America and Eastern Europe along with some countries in East Asia, have a per capita GDP ranging from $1,025 to $12,475. For example, Russia and other former Soviet nations, as well as Argentina, Botswana, Brazil, Chile, Gabon, and Mexico have a mid-tier per capita GDP of about $6,000-10,000. China, which contributes significantly to world economy, has a per capita GDP of about $10,500.
Learn more about Middle-income countries GDP here:https://brainly.com/question/30529438
#SPJ12
Based on the following data, what is the gross profit for the company?Sales$ 1,000,000Net purchases of raw materials 600,000Cost of goods manufactured 800,000Marketing and administrative expenses 250,000Indirect manufacturing costs 500,000
Answer:
$600,000
Explanation:
Sales = $ 1,000,000
Net purchases of raw materials = 600,000
Cost of goods manufactured = 800,000
Marketing and administrative expenses = 250,000
Indirect manufacturing costs = 500,000
Beginning inventory Ending inventory
Work in process = $500,000 $400,000
Finished goods = $100,000 $500,000
Cost of goods sold:
= Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
= $100,000 + $800,000 - $500,000
= $400,000
Gross profit = Sales - Cost of goods sold
= $ 1,000,000 - $400,000
= $600,000
In 2019, Ben purchases and places in service a new auto for his business. The auto costs $57,000 and will be used 100 percent for business. Assuming the half-year convention applies and Ben does not elect out of bonus depreciation, what will depreciation on the auto be in 2018
The question asks for the depreciation of a car purchased and put into service in 2019 for the year 2018, which is not computable since the car wasn't in service that year. The automotive business usage depreciation begins when the car is put to use.
Explanation:The question pertains to the calculation of the auto-s business usage depreciation for the year 2018. However, there seems to be a mistake in the chronological order in the question. It is mentioned that Ben purchased the car in 2019, so there would be no depreciation to report in 2018. The tax regulations assure the expense of tangible property like a business auto over a particular recovery period via yearly depreciation deductions. These deductions begin in the year when the auto is placed in service for business purposes. As per U.S. tax laws under half-year convention, tangible property is treated as being placed in service in the middle of the year, regardless of when the property was actually placed in service.
Half-year convention, depreciation, and business auto are essential concepts in business and accounting which are relevant to this question.
Learn more about Depreciation here:https://brainly.com/question/17827672
#SPJ12
Which of the following is a question a firm would ask when evaluating the firm's strategy on an innovation scorecard? A. Does the organization intentionally avoid trying new things? B. How aware are organization members of the firm's goals for innovation? C. Does leadership encourage members of an organization to try things without fearing failure? D. Do the organization's members have the freedom and security to try things, fail, and then go forward to try different things? E. Does the organization have an appetite for learning and trying new things?
Answer:
the correct answer is; B. How aware are organization members of the firm's goals for innovation?
Explanation:
When one party breaches a contract, the other party can choose from one or more of several_____________ . Generally, a court will grant money, a remedy at___________ , unless money is not sufficient. If that is the case, the court will grant a remedy in____________ .
Answer: remedies, law, equity
Explanation: When one party breaches a contract, the other party can choose from one or more of several remedies. Generally, a court will grant money, a remedy at law , unless money is not sufficient. If that is the case, the court will grant a remedy in equity .
Remedies at law are limited to payments of money or property as damages, furthermore, remedy at law enforces a right, imposes a penalty, or makes another court order to impose its will in order to compensate for the harm of a wrongful act inflicted upon. while Remedies in equity is available only when there is no adequate remedy at law.
A company normally sells a product for $25 per unit. Variable per unit costs for this product are: $3 direct materials, $5 direct labor, and $2 variable overhead. The company is currently operating at 100% of capacity producing 30,000 units per year. Total fixed costs are $75,000 per year. The company should accept a special order for 1,000 units which would be sold for $13 per unit because the special order price exceeds variable costs. True or False True False
Answer:
False
Explanation:
Currently the company is working at full capacity and they are selling their total production at $25 per unit. If they accepted the special order, they would be receiving less money per unit sold: normal price per unit - special order price = $25 - $13 = $12, so they would be losing $12 per unit sold. The only way that they could accept this special order is if they can work overtime and produce 31,000 units instead or 30,000.
If a person was sufficiently intoxicated to lack the mental capacity to comprehend the legal consequences of entering into the contract, the contract may be voidable at the option of the intoxicated person. If, despite intoxication, the person understood these legal consequences, the contract will be enforceable.1. True2. False
Answer:
1) True
Explanation:
An intoxicated person can:
disaffirm the contract: an intoxicated person can void a contract while still being intoxicated or short after becoming sober. If the contract involves basic necessities, it can still be voided but the intoxicated person is still liable for the goods or services consumed. ratify the contract: once sober the person can ratify the contract and it becomes enforceable by all the parties.
Monopolistically competitive firms: a will set price where MC > MR. b earn a positive economic profit if price is greater than ATC. c engage in collusive activity in order to maximize profit. d are regulated by the government to keep long-run economic profits equal to zero. e are very similar to perfect competitors in producing at the minimum ATC.
Answer:
Monopolistically competitive firms are regulated by the government to keep long-run economic profits equal to zero.
Explanation:
Monopolistic competition is a type of imperfect competition with many sellers selling similar, but not identical products and there are not perfect substitutes.
In the short run, a monopolistically competitive firm will select the rate of output where marginal revenue equals marginal cost. In the long-run monopolistically competitive firms are regulated by the government to keep long-run economic profits equal to zero.
Answer:
B) earn a positive economic profit if price is greater than ATC.
Explanation:
Monopolistically competitive markets are not monopolies, they are markets will many suppliers that provide differentiated products, e.g. restaurants.
In order to maximize their accounting profits, they must sell their products at a price where marginal revenue (MR) = marginal costs (MC). Monopolistically competitive firms do not produce at minimum average total cost, because they generally operate with excess capacity. Excess capacity = quantity produced at minimum ATC - quantity that yields the greatest profits (MR = MC).
Monopolistically competitive firms can earn economic profit if their price is higher than ATC.
At his regular hourly rate, Don had estimated the labor cost of a repair job as $336 and he was paid that amount. However, the job took 4 hours longer than he had estimated and, consequently, he earned $2 per hour less than his regular hourly rate, What was the time Don had estimated for the job, in hours?
Answer: the time is 24 hours
Explanation:
Say the regular hourly rate was $ and estimated time was hours, then we would have:
let r = rate of doing the job
And t = time.
rt = 336
Also, ( r- 2)(t - 4) = 336
Using simultaneous equation and quadratic equation lead to t = 24 hours
Find the attached file for solution
Apricot Corporation has decided to buy a new glazing machine for its factory. The machine's cost is $50,000 and the expected income from the machine for next 3 years are $19,000, $25,000 and $30,000. If the machine's expected rate of return is 8%, then its net present value is _____.
Answer:
$12,841.03
Explanation:
Given:
Initial Investment = $50,000
1st year expected income = $19,000
2nd year expected income = $25,000
3rd year expected income = $30,000
Expected rate of return = 8% = 8/100 = 0.08
Net present value = ?
Computation of net present value:
Net present value = [tex]C0 + \frac{C1}{(1+r)^1}+ \frac{C2}{(1+r)^2}+ \frac{C3}{(1+r)^3}[/tex]
[tex]50,000 + \frac{19,000}{(1+0.08)^1}+ \frac{25,000}{(1+0.08)^2}+ \frac{30,000}{(1+0.08)^3}\\\\50,000 + \frac{19,000}{(1.08)^1}+ \frac{25,000}{(1.08)^2}+ \frac{30,000}{(1.08)^3}\\\\50,000 + \frac{19,000}{(1.08)}+ \frac{25,000}{(1.1664)}+ \frac{30,000}{(1.259712)}\\\\50,000 + 17,592.5926+ 21,433.4705+ 23,814.9672\\\\112,841.03\\\\[/tex]
Net present value = $112,841.03
Val comes from a culture that values equality, works for the improvement of the welfare of the less fortunate, and values warm personal relationships more than goal achievement. Val's culture has __________.A - high collectivism and short term orientation
B - low power distance and strong nurturing orientation
C - high power distance and nurturing orientation
D - low uncertainty avoidance and high individualism
Answer:
low power distance and strong nurturing orientation
Explanation:
Culture can be defined as the way of life of a group of people, according to Hofstede’s model he identified the following:
1. Power distance
2. Individualism and Collectivism
3. Uncertainty Avoidance Etc
Power Distance refers to the relationship that exists between subordinate and the top level management. Equality is a feature of low power distance i.e everyone is treated the same regardless of hierarchy.
It has strong nuturing orientation as it’s goals are sustainable and beneficial
During its first year of operations, the Brown Company incurred the following product costs: Direct materials used in production $200,000 Direct labor $175,000 Manufacturing overhead $145,500 The Brown Company's ending Work in Process Inventory amounted to $35,000 at the end of the year. What is the company's cost of finished goods manufactured for the year?
Answer:
$485,500
Explanation:
The computation of the cost of finished goods manufactured for the year is shown below:
= Direct materials used in production + Direct labor cost + Manufacturing overhead cost + beginning work-in-process inventory - ending work-in-process inventory
= $200,000 + $175,000 + $145,500 + $0 - $35,000
= $485,500
To find the cost of finished goods manufactured for the year, use the formula: Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory. In this scenario, the cost would amount to $485,500.
Cost of finished goods manufactured for the year:
To calculate the cost of finished goods manufactured, you can use the formula:
Cost of Finished Goods Manufactured = Beginning WIP Inventory + Total Manufacturing Costs - Ending WIP Inventory
In this case, the calculation would be: $0 + $520,500 - $35,000 = $485,500.
How can you know if the person or organization providing the information has the credentials and knowledge to speak on this topic? One clue is the type of web site it is--the domain name ".org" tells you that this site is run by a nonprofit organization. Now scan the article to find the name and credentials of the person who wrote it. What is the affiliation of the writer?
Based on the given information, The affiliation of the writer is writer was a staff member.
What are credentials?An element of a document describing a certification, knowledge, or authority issued to a person by a third party with applicable or unofficial authority or assumed professionalism is called a credential.
Credentials include academic certificates, medals, degrees, certifications, and identity documents. Books or scientific articles may be viewed as publications by certain people to be on a level with credentials.
The post is currently being searched to find the author's name and credentials based on the information provided that explains the issue. At the Discovery Institute, the author was working due to which he is able to perform tasks.
Learn more about credentials, here:
brainly.com/question/14880501
#SPJ6
The answer explains how to assess the credibility of information sources by examining the author's credentials, website domain names, and website accountability.
How to Evaluate Credibility of Information SourcesAuthority: Check for the author's credentials and expertise in the field. Look for domain names like .org, which indicate affiliation with a nonprofit organization. Confirm the accountability of the website by finding information about the author, organization, and publication date.
Which of the following is true of a dividend payout? A. When a stock begins to trade ex dividend the share price will fall. B. When a firm announces that it will increase its dividend, the share price usually decreases on that news. C. When a stock begins to trade ex dividend there is no impact on the share price if the market. is efficient D. Dividend payments send a positive signal to investors in the marketplace that management believes that the stock is overvalued.
Answer: Option A
Explanation:
Dividends affect the stock price in many ways. The stock price is marked down by the investors as they think the dividends paid out is a source of investment. But the company which issues the dividend to the shareholders does it as a an act of gratitude for investing in their business. They share the profits with the shareholders by paying out dividends.
Companies with substantial profits issues dividends regularly. Dividends are either paid in the form of money per share or by issuing additional shares.
How long would it take for the price level to double if inflation persisted at the following percentages?
Answer:
inflation rate = 17.5 percent per year ⇒ it will take 4 years to double
inflation rate = 35 percent per year ⇒ it will take 2 years to double
inflation rate = 3.5 percent per year ⇒ it will take 20 years to double
Explanation:
we can use the rule of 70 to determine the amount of time it would take the general price level to double.
the rule of 70 is a simple way we can use to estimate the number of years it will take an investment to double given a certain growth rate.
70 / 17.5 = 4 years
70 / 35 = 2 years
70 / 3.5 = 20 years
For most firms, the major difference between accounting profit and economic profit is that a. accounting profit omits the salaries of managers, and therefore, it is generally greater than economic profit. b. explicit and implicit costs are included in the accounting profit while only explicit costs are included in economic profit. c. accounting profit is based on opportunity cost, whereas economic profit is based on market transactions. d. accounting profit does not consider the opportunity cost of the firm's equity capital in terms of foregone interest and, therefore, generally overstates economic profit.
Answer:
The answer is D.
Explanation:
Accounting profit can be calculated as total revenue minus total cost(this total cost is called explicit cost). Explicit cost is the cost that are related to the production of goods and services or to the generation of revenue. For example, wages and salary, electricity, raw materials etc. Accounting profit does not consider implicit cost(opportunity cost). It only considers explicit cost. And because it doesn't consider implicit cost, economic profit will be overstated.
Economic profit can be calculated as total revenue minus (explicit cost plus implicit cost). Implicit cost is the cost of the forgone or alternative option. Implicit cost is the cost of the alternative that was not chosen. For example, a business has the option of either using its plant and machinery and this will generate $50,000 per year or renting it out at $45,000. And in the end the business opts for using the machinery at $50,000. The implicit cost here is the cost of renting it out at $45,000.
This implicit cost and explicit cost are considered in calculating economic profit.
Accounting profit and Economic Profit differ on what types of costs they consider. Accounting profit counts explicit costs or the direct costs of running a business. Economic profit counts both explicit costs and implicit costs, considering the opportunity cost of a firm's owned resources.
Explanation:The major difference between Accounting Profit and Economic Profit for most firms lies in the types of costs that are included in each. Accounting profit is a firm's total revenue minus its explicit costs - the direct, out-of-pocket costs of operating the business. These may include wages, rent, materials, etc.
On the other hand, economic profit considers both explicit costs and implicit costs, which are the opportunity costs associated with a firm's use of resources that it owns. This typically involves the firm's equity capital in terms of foregone interest (what the resources could have earned if used in the best alternative way). Therefore, the best option from the given choices is 'd'. Accounting profit does not consider the opportunity cost and generally overstates the economic profit.
Learn more about Accounting and Economic Profit here:https://brainly.com/question/34487260
#SPJ6
if demand for the good decreases creating economic losses firms will exit the industry in the long run as firms exit in the long run industry supply will _ and market price will _
Answer:
The correct answer is: decrease; increase.
Explanation:
There is a decrease in demand when the curve shifts to the left and down. It is determined by:
Decrease in consumer income
Increase in the price of complementary goods
Decrease in the price of substitute goods
Change of consumer preferences.
The decrease in demand means that even the same price, less quantity of the good is demanded or when the price decreases buying the same quantity of the good.
Andrews Company accepted a note receivable from a credit customer who failed to pay their $2,000 Accounts Receivable balance. The customer signed a promissory note which was accepted for 9 months at 5% interest. At the end of the 9 months, the customer does not pay, so it becomes a dishonored note receivable. What is the journal entry for the dishonored note?
Answer:
The journal entry which is to be recorded for the dishonored note is shown below:
Explanation:
The journal entry which is to be recorded for the dishonored note is as follows:
Accounts Receivable A/c..............................Dr $2,075
Notes Receivable A/c...................................Cr $2,000
Interest Revenue A/c......................................Cr $75
Being the note which is received got dishonored
As the note got dishonored so the accounts receivable account will be debited against the notes receivable account and the account of interest revenue is also credited.
Working Note:
Interest revenue = Amount of notes receivable × Rate × Months / Total number of months
= $2,000 ×5% × 9/12
= $75
There are four partners in the Dallas Pet Taxi company. One of the partners, Devin, decides to dismiss a particularly difficult client from using the company’s services. He doesn't consult with the other three partners in order to take this action. The fact that Devin can make this type of business decision without consulting the other partners is considered to be a disadvantage of what type of business entity?
There are four partners in the Dallas Pet Taxi company. One of the partners, Devin, decides to dismiss a particularly difficult client from using the company’s services. He doesn't consult with the other three partners in order to take this action. The fact that Devin can make this type of business decision without consulting the other partners is considered to be a disadvantage of Limited liability partnership.
Explanation:
In the case of a Limited liability partnership, the liability of all or some partners is limited. limited liability means that the partners are not responsible for other partner negligence.
In this case of the Dallas pet Taxi company, One of the partners dismisses a difficult client without consulting other partners. So in case, any problem arises he will be solely responsible for it. The other partners will not be answerable for his actions. The partner responsible will have to face the consequences and bear the loss if any arises. So, is will act as a disadvantage of a Limited liability partnership where all partners are personally responsible for any misconduct or negligence.
The maquiladora industry along the Texas–Mexico border on the Mexico side uses cheap labor for assembling products. This lowers the price for U.S. consumers and is an example of ______.
Answer:
Outsourcing
Explanation:
Outsourcing
This is the process or situation whereby a company hires another company to handle a specific task usually been done previously by the company's employees. Task may include sales, recruitment and so on. It is a type of business practices that involves hiring an outside company or individual to perform tasks and services that were primarily done by the company's employees in the past. It is majorly done to reduce cost and be time efficient, when the said task becomes too expensive and time wasting to be handled internally. In this case, labour is been outsourced in order to reduce the cost of production and in turn make goods cheap.
Taxes on goods with __________ demand curves will tend to raise more tax revenue for the government than taxes on goods with __________ demand curves.
Answer:
Inelastic; elastic
Explanation:
Goods with inelastic demand curves tend to raise more government revenue compared to goods with the elastic demand curve. An increase in price does not affect the demand of inelastic goods and it remains the same, that is why, governments usually increase the prices of goods that have inelastic demand curve, for example, petrol and toll tax, etc.
Taxes on goods with inelastic demand curves raise more tax revenue for the government than taxes on goods with elastic demand curves. When demand is inelastic, consumers are less responsive to changes in price and will continue buying the good even with higher prices due to taxes. This allows the government to collect more tax revenue.
Explanation:Taxes on goods with inelastic demand curves will tend to raise more tax revenue for the government than taxes on goods with elastic demand curves.
If demand is more inelastic than supply, consumers bear most of the tax burden, and if supply is more inelastic than demand, sellers bear most of the tax burden. When the demand for a good is inelastic, it means that consumers are less responsive to changes in price, so they are more likely to continue buying the good even with higher prices due to taxes. This allows the government to collect more tax revenue.
For example, if a tax is imposed on a good with an inelastic demand curve, consumers may have to pay a higher price, but they will still purchase the good because it is necessary or important to them. On the other hand, if a tax is imposed on a good with an elastic demand curve, consumers may reduce their consumption or switch to substitutes, leading to a decrease in tax revenue for the government.
Learn more about Taxes on goods with inelastic versus elastic demand curves here:https://brainly.com/question/13751626
#SPJ12
Uncollectible accounts are determined by the percent-of-sales method to be 22% of credit sales. How much is uncollectible-account expense for 20142014?
Answer:
Therefore uncollectibel account expense = 0.22 x 94,000 = $20,680
Explanation:
Uncollectible accounts are determined by the percent-of-sales method to be 22% of credit sales. How much is uncollectible-account expense for 2014?
Uncollectible Accounst will simply be 22% multiplied by the credit sales figure for the year.
Accounts Receivable.....26,000
Allowance for collectible account...1,500
Credit sales for 2014 ...$94,000
Cash Sales for 2014.....28,000
Collection from customers on account...100,000
Therefore uncollectibel account expense = 0.22 x 94,000 = $20,680
A(n) is a contractual arrangement in which one entity grants the purchaser the exclusive right to use the trade name, formulas, and product rights within a specific geographic area for a specific period of time. (Enter one word per blank)
Answer:
Franchise
Explanation:
Franchise is firstly permitted by government. Franchise gives authority to sell the product by the brand name which means one franchiser person gives rights to another people to use his trade name, the product rights and formulas and set the specific target in a given geographic area to another person for the benefit of the organization.
Michael can buy either pizzas or submarine sandwiches. If the prices of pizza and submarine sandwiches double and Michael's money income triples, we can conclude that Michael's budget constraint will
We can conclude that Michael's budget constraint will shift out but remain parallel to the old one.
Explanation:The ability of a person in spending a unit of money in purchasing a product r devices refers to the purchasing ability of that person. Purchasing power determines the quantity if goods and services that can be purchased by the individuals of an economy. The main factor that determines the purchasing power of an individual is the inflation rate.
In the given example, the ability of Michel in purchasing pizzas or submarine sandwiches is explained. When the pizza and submarine sandwiches prices gets doubled, the income of Michel triples. From this we can conclude that Michael's budget constraint will shift out but remain parallel to the old one.
The primary purpose of calculating standard cost variances each period is: A. To achieve financial control regarding operating activities. B. To facilitate the recording of manufacturing costs during a period. C. To adjust reported income to flexible-budget income. D. To diagnose the cause of operating problems as well as what should be done to correct such problems. E. To minimize income tax liabilities. Next
Answer:
A. To achieve financial control regarding operating activities.
Explanation:
Standard cost variance refers to the difference between budgeted costs and actual costs. One of the basic administrative functions is to control the company's activities, and calculating the standard cost variance can help you control how well the company's production processes are functioning.
Bellbird Corporation acquired an 80% interest in Honey Inc for $130,000 on January 1, 2014, when Honey had Capital Stock of $125,000 and Retained Earnings of $25,000. Bellbird's separate income statement and a consolidated income statement for Bellbird Corporation and Subsidiary as of December 31, 2014, are shown below.
Bellbird Consolidated
Sales revenue $150,000 $235,750
Income from Corporal 12,600
Cost of sales (60,000) (100, 000)
Other expenses (20,000) (50,000)
Noncontrolling interest income ( (3,150)
Net income $81,600 $81,600
Honey's separate income statement must have reported net income of:__________________.
Answer:
$15,750
Explanation:
The calculation of the net income reported by two methods is presented below:
= Income from Corporal + Non-controlling interest income
= $12,600 + $3,150
= $15,750
Or we can one thing also
= Income from Corporal ÷ acquiring percentage
= $12,600 ÷ 80%
= $15,750
All other information listed in the question is not important.