All categories

2 years ago

A firm run by a rational entrepreneur would want to hold inventories. True False

1 answer:

4 0

True
Because having inventories would mean the following:
1. Holding Inventory avoids loss of sales
2. Holding Inventory gains quantity discount
3. Holding Inventory reduces order cost 4. Achieve efficient production runs by holding inventory
5. Holding Inventory reduces risk of production shortages

You might be interested in

A) You have just moved into a new apartment and are trying to arrange your bedroom. You would like to move your dresser of weigh

notsponge [240]

Answer:

A. W = 0joule

B.W = d * w * cos (90 -ø)

Explanation:

work done is force multiplied by distance since the distance covered by the dresser is zero so automatically work done in moving the dresser is 0 (zero)

B. The component of weight of box along the inclined plane = w * cos ( 90 - ø )

Where ø is the angle of inclination to the horizontal

W = weight of body due to gravity.

Since the distance traveled by box due to gravity = d

So therefore:

W = d * w * cos (90 -ø)

W = work done

N.b

See attached sketch for comprehension

4 0

2 years ago

Suppose there are 5 million unemployed workers seeking jobs. After a period of time, 1 million of them become discouraged over t

aev [14]

Answer: Decline.

Explanation:

If a million job seekers out of 5 million job seekers, get discouraged and stop job hunting, the unemployment rate would be recorded to have dropped, because it would mean that there are fewer individuals that are seeking for employment( in this case 4million).

6 0

2 years ago

Morganton Company makes one product, and it provided the following information to help prepare the master budget for its first f

Lilit [14]

Answer and Explanation:

BUDGETED SELLING PRICE $ 70 *

BUDGETED UNITS IN JULY 22000

BUDGETED SALES $ 1,540,000

SALES

CASH 40% $ 616,000

CREDIT 60 % OF PREVIOUS MONTH $ 382,200

RAW MATERIAL

RAW MATERIAL PURCHASES COST

40 % PAID NOW JULY $260900 $ 104,360

60 % PREVIOUS MONTH JUNE $ 159980 $ 95,988

LABOR

$12 PER HOUR * (24980 * 2)$ 599,520

VARIABLE EXPENSES $ 37,400

($1.70 * 22000)

FIXED EXPENSES $ 61,000

CASH INFLOW $ 99,932

SALES IN JULY $ 1,540,000

60 % OUTSTANDING $ 924,000

4) 2980 UNITS SHOULD BE PRODUCED

JUNE JULY AUGUST SEP

SALES UNIT 9100 22000 24000 25000

CLOSING UNITS4400 4800 5000 -

20% OF NEXT MONTH SALE

OPENING UNITS - 1820 4400 4800

20% OF PREVIOUS MONTH SALE

FINISHED GOODS REQUIRED

13500 24980 24600 20200

SALES + CLOSING - OPENING

RAW MATERIAL REQUIRED

54000 99920 98400 80800

FINISHED GOODS REQUIRED * 4

CLOSING UNITS9992 9840 8080 -

10% OF NEXT MONTH NEEDS

OPENING UNITS - 5400 9992 9840

10% OF PREVIOUS MONTH NEEDS

RAW MATERIAL PURCHASES

63992 104360 96488 70960

5 0

2 years ago

On June 2, 2021, Tabitha Co. purchased a franchise for $586,000 by signing a five-year contract. At the end of the five years, t

Usimov [2.4K]

Answer:

Tabitha Co.

The gain recorded on the sale of the patent is:

= $7,933

Explanation:

a) Data and Calculations:

June 2, 2021, Purchase of Franchise for $586,000

Period of franchise = 5 years

September 1, 2023, Sale of Franchise for $340,000

Annual amortization expense = $117,200 ($586,000/5)

Amortization Schedule:

June 2, 2021 to December 31, 2021 = $58,600 ($117,200/2)

Jan. 1, 2022 to December 31, 2021 = $117,200

Jan. 1, 2023 to September 1, 2023 = $78,133 ($117,200 * 8/12)

Total amortization during the period = $253,933

Initial cost = $586,000

Accumulated amortization = $253,933

Reduced book value = $332,067

Sales proceed = $340,000

Gain from sales = $7,933 ($340,000 - $332,067)

6 0

1 year ago

The small island nation of kaboom is a simple economy with no government, no taxes, and no imports or exports. kaboomers (cit

Luden [163]

HERE IS/ARE THE FULL QUESTION(S):

The small island nation of Kaboom is a simple economy with no government, no taxes, and no imports or exports. Kaboomers (citizens of Kaboom) are creatures of habit. They have a rule that everyone saves exactly 40 percent of income. Assume that planned investment is fixed and remains at 225 million Kaboomian dollars. Further assume that autonomous consumption (independent of Y) is zero, so consumption (C) is MPC times Upper YMPC×Y.

The following data are estimates for the island of Kaboom:

bullet• Real GNP (Y): 422 million Kaboomian dollars

bullet• Planned investment spending (I):225 million Kaboomian dollars

You are asked by the business editor of the Explosive Times, the local newspaper, to predict the economic events of the next few months.

Based on the data given, you predict inventories will DECREASE and the level of real GNP will INCREASE.

Things will stop changing when SAVINGS EQUAL INVESTMENT.

Kaboom's economy will reach equilibrium when its real GNP = 563 MILLION Kaboomian dollars

6 0

2 years ago