This is a key idea with international trade. This involves what is known as comparative advantage.
let's say country A can produce a ton of soybeans in 4 hours and a ton of corn in 2 hours. While country B can produce a ton of soybeans in 15 hours and a ton of corn in 5 hours.
Looking at this set up you can see that country A can produce both corn and soybeans faster, so they have an absolute advantage in both!
However what trade is based on is opportunity cost. So if we think about how much corn country A has to give up to produce soybeans, they have to divert a total of 4 hours from corn to soy beans to produce one ton of soy beans. That 4 hours could be used to produce 2 tons of corn (since 2 hours for 1 ton and we're taking away 4 hours!). So opportunity cost of soybeans in country A is 2 corn.
In country B they would need a total of 15 hours to produce one extra ton of soybeans, but those 15 hours could instead be used to produce 3 tons of corn (5 hours per ton and we're stealing 15 total hours). That means country B's opportunity cost is 3 corn.
Since A has a lower opportunity cost in produce soybeans they will specialize and B will specialize in corn.
The type of financing that Pete has secured is VENTURE CAPITAL. Venture capital is a type of private equity, a form of financing that provides funds by private investors to new companies with high potentials or emerging companies that are deemed to have high potentials. In return for the money provided by the private investors, they become part owners in the company.
Retained earning must have been C. $413,640 on December 31, 2016
Both monetary and non-monetary. If "Joe" did not follow the regulations, he would receive fines. Plus, if customers got sick from him not following the regulations, he could lose his business.
Answer:
C. $2.007
Explanation:
The computation of cost per equivalent unit for conversion costs is shown below:-
For calculating the cost per equivalent unit for conversion costs first we need to find out the equivalent unit of conversion and conversion cost which is shown below:-
Equivalent unit of conversion = Completed units + (Ending units × Complete percentage)
= 92,000 + (14,000 × 90%)
= 104,600 units
Conversion cost = Beginning inventory + Total of conversion cost
= $7,480 + $202,400
= $209,880
Cost per equivalent unit of conversion cost = Conversion cost ÷ Equivalent unit of conversion
= $209,880 ÷ 104,600
= $2.007
