In the long run, average costs can change depending on the output. Order the types of scales from falling long-run average total cost to rising long-run average total cost. Start by clicking the first item in the sequence or dragging it here Drag the items below into the box above in the correct order, starting with the first item in the sequence. diseconomies of scale constant returns to scale economies of scale Which situation describes a company experiencing an accounting loss? Click or tap a choice to answer the question. The explicit costs are higher than total Total revenue is more than total cost. revenue. The explicit costs are higher than the implicit costs. The total cost includes only the implicit costs.

Answers

Answer 1

Answer: economies of scale, constant returns to scale, diseconomies of scale

Explanation:

Answer 2

The situation describes a company experiencing an accounting loss is the total cost includes only the implicit costs.

Accounting loss

The term accounting loss refers the decrease in net income that is outside the normal operations of the business.

Given,

In the long run, average costs can change depending on the output. Order the types of scales from falling long-run average total cost to rising long-run average total cost.

Here we need to find the situation describes a company experiencing an accounting loss.

In order to find the situation, we have to find the definition of long run, long run defines permanently looking to expand production capacity of cars instead of only during the season.

According to the given situation, average costs can change depending on the output, that refers the total cost which only includes the implicit cost.

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Related Questions

if a store owner is doing her best to minimize cost, why is it still true that total variable cost has to increase when output increases?

Answers

If a store owner is doing her best to minimize cost, it is still true that total variable cost would increase because to maximize the output, you need to enhance the input.

In the field of business, the variable cost can be described as a cost that changes according to the demand of a company.

When you need to increase the output, you also need to increase the input. This is because more input or work will be required to produce more output.

More input needs to be hired in order to increase the output. This means that the variable cost would increase in order for the output to be increased by the store owner.

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which of the following help avoid or reduce work-life conflict? multiple select question. expecting employees to respond to work emails whenever they are sent. requiring all employees to work five days a week at the office sharing domestic responsibilities with a spouse and other family members adopting a family-supportive philosophy in the workplace

Answers

By allowing all employees to work five days a week at the office sharing domestic responsibilities with a spouse and other family members help to avoid work-life conflict and maintain work-life balance.

Work-life balance is the harmony achieved when a person prioritizes their professional and personal obligations equally. Work-life balance is frequently used to refer to the a compromise. You establish an equilibrium between the amount of time you devote towards private hobbies and work-related tasks. This may also be used to describe whether flexible team members believe themselves to be.

Being on call each evening and on the weekends over years is indeed not sustainable, even though each individual has a unique definition of work-life balance. It's important for your health and can result in a happier life at home and at work if you have enough leisure for both personal and professional activities.

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a group of stocks and or bonds selected and managed by a professional manager sometimes preferred by professionals and workers too busy to manage their investments

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A group of stocks and or bonds selected and managed by a professional manager is sometimes preferred by professionals and workers too busy to manage their investments in mutual funds.

A stock is a collection of shares owned by a single investor that represents a share of a company's assets and earnings. Mutual funds, on the other hand, are pools of funds from multiple individual investors that are further invested in a portfolio of assets.

Group A represents companies that are highly liquid and actively traded on the stock exchange. You should also be aware that all trades in securities falling under this group will be settled according to the normal ongoing settlement process. A mutual fund is a type of investment vehicle that pools money raised from different investors and invests it in various assets such as bonds stocks and money market investments.

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1) internal rate of return, 2) , and 3) net present value. a. payback method b. external rate of return c. net future value

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A firm, project, or investment's future stream of payments is valued at present value using a method known as net present value (NPV).

The net present value approach is what, exactly?

The method of calculating net present value (NPV) is used to estimate the current value of all future cash flows produced by a project, including the initial capital expenditure. Establishing which projects are most likely to provide the most revenue is a common step in capital planning.

Alternatively, it is the compound yearly return that an investor anticipates (or actually receives) over the course of an investment.

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you purchased eight pangolin corporation call options with a strike price of $30.00 at a quoted price of $.29. what is your total profit on this investment if the price of pangolin is $32.40 on the option expiration date?

Answers

On the expiration date the total profit would be 3.40$  for eight pangolin corporation call options with a strike price of $30.00 at a quoted price of $.29.

The motivation behind buying a call option

Buying a call option provides the main advantage of amplifying stock price gains. For a very little up-front deposit, you can profit from stock gains over the strike price until the option expires. Therefore, if you are buying a call, you normally expect the stock to rise before expiration.

What makes the call option a call?

An open auction is one in which bidders announce their prices for items that are being sold. So, by having the ability to call the strike price, a call option effectively gives you the right to purchase the underlying asset.

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One of the main financial services that is provided by a bank involves offering accounts where people can safely store their money for a period of time, all the while earning interest and being protected by insurance. What is this common financial service called?.

Answers

The common financial service is called Savings.

Financial Services

Financial services are the services provided by the finance industry encompassing a large range of businesses that handle money, including credit unions, banks, credit  and debit card companies, insurance companies, accountancy companies, insurance companies, consumer-finance companies, stock brokerages, investment funds and public/private stocks, individual asset managers, and a few government-sponsored enterprises.

Savings

Saving is the portion of income or revenue generated that is not spent on expenditures. It is the money that is going to be used for the future and is not going to be spent immediately.

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in a large open economy, why is the supply curve for loanable funds upward sloping? a higher real interest rate discourages domestic consumers from buying foreign assets. a lower real interest rate encourages people to save. a lower interest rate makes borrowing more expensive. a higher real interest rate encourages people to save.

Answers

In a large open economy, due to a higher real interest rate encourages people to save the supply curve for loanable funds upward sloping.

Supply curve:

Supply curve is the graphic representation of the relationship between product price and quantity of product that a seller is willing and able to supply.

Given,

Here we need to find in the open economy, why is the supply curve for loanable funds upward sloping.

While we looking into the given situation we have identified that the  supply curve for loanable funds upward sloping when the interest is high.

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a real estate agent wants to estimate the average age of those buying investment property in his area. he randomly selects 15 of his clients who purchased an investment property and obtains the data shown. assume that s

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95% confidence interval for the mean age for all the real estate agent's clients who purchased an investment property is approximately

[41, 48] years.

n=15

x' = Σx/n

x = 670/15

x' = 44.67

The sample standard deviation:

s = √Σ(x-x')^2/n-1

s = 6.79

The confidence level  = 0.95

the significance level α = 0.05

Degrees of freedom

Df = n-1

Df = 14

[tex]T_{crictical}=t_{a/2,Df}[/tex]

= ±2.14

95% confidence interval

∪ = x' ± t.s/√n

∪ = 44.67 ± 2.14×6.79/√15

∪ = 44.67 ± 3.75

95% confidence interval for the mean age for all the real estate agent's clients who purchased an investment property is approximately

[41, 48] years.

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an industrial/organizational (i/o) psychologist is hired by a local bank. which of the following areas will an i/o psychologist be most likely to address?

Answers

The concerns mentioned above would all be addressed by an I/O psychologist.

What is meant by industrial/organizational (i/o) psychologist?

Industrial and organizational (I/O) psychologists concentrate on how workers behave at work. To improve the total working environment, including performance, communication, professional satisfaction, and safety, they use psychological principles and research techniques.

The application of psychological theories and concepts to business is the domain of industrial-organizational psychology. I-O psychology, as it is often known, focuses on improving employee physical and mental health as well as other relevant workplace difficulties.

Formerly known as industrial psychology, industrial-organizational psychology applies theories and techniques from a number of subfields of the discipline, including learning, motivation, and social psychology, to workplace and institutional settings.

The complete question is : Which of the following is not an issue that I/O psychologists would address?

a. legal issues related to hiring, firing, and evaluating employees

b. an organization's policies

c. all of the above are issues that an I/O psychologist would address

d. a company's organizational structure

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because it is not uncommon for applicants to engage in resume fraud, references and letters of recommendation are used to:

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Because it is not uncommon for applicants to engage in resume fraud, references and letters of recommendation are used to confirm details on a resume.

Many employers keep in mind mendacity on your task software to be a resume fraud. during the hiring manner, if an applicant is needed to make a signed statement that the statistics they are providing to the company are actual, lying from that factor onward will become illegal.

If a site makes it easy for each person to access your touch records, importing your complete resume there could reveal you to scammers. Many online activity boards, like certainly, have privacy and protection functions that assist to guard your resume statistics from scammers.

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how does a content plan relate to experience strategies? what are the elements included in the content plan?

Answers

The decisions a company makes for its targeted markets (customers) in terms of product qualities, pricing, distribution, and communication strategy in order to develop and sustain a desired response is known as the marketing mix.

A marketing mix often consists of the four Promotions: Having effective marketing communication, such as advertising, sales promotion, direct marketing, etc., is crucial for a successful sales record or to increase the number of people purchasing a product or using a service. This is the sum of money that a consumer willing to purchase goods and services is willing to pay. This shows the regions where these products and services are distributed so that potential clients can obtain them more easily.A marketing technique known as content marketing is the process of raising consumer awareness of a product via the use of media channels in order to draw in new customers.Most businesses utilise content marketing to promote or sell their goods in an effort to boost sales.

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which of the following statements regarding an audit and a standard auditor's opinion is most accurate?

Answers

A smooth “unqualified” opinion is the most frequent (and desirable). Here, the auditor states that the company's financial condition, function and operations are fairly introduced in the economic statements.

What kind of audit opinion do you assume is the most common?

An unqualified opinion is issued if the economic statements are presumed to be free from cloth misstatements. It is the most common kind of auditor's opinion.

What are the four sorts of audit opinions?

Tip. There are 4 kinds of audit reports: and unqualified opinion, a qualified opinion, and damaging opinion, and a disclaimer of opinion. An unqualified or "clean" opinion is the satisfactory type of file a enterprise can get.

which of the following statements regarding an audit and a standard auditor's opinion is most accurate?

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The claims relating to an audit and a typical auditor's opinion are most correct. The price adjustments brought on by inflation are not included in the first one.

What is inflation?

A broad increase in the costs of goods and services throughout an economy is referred to as inflation. Each unit of currency may purchase fewer products and services when the general price level rises; hence, inflation is associated with a decline in the purchasing power of money.

Who gains from inflation?

Investors in commodities and the stock market. Investors can profit from inflation despite slow economic development provided they have the right stocks as well as commodities in their portfolios. Equity investors: Investing in equities is considerably preferable to retaining cash during periods of rising inflation.

What occurs if inflation gets out of control?

The main cost of inflation is the erosion of real income, which occurs when prices rise unevenly and causes some customers' purchasing power to decline. For both those who receive and pay fixed interest rates, inflation can over time affect their ability to make purchases.

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in projecting sales, you look at other similar companies in similar areas to see what information you can discover. this forecasting technique is known as:

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In projecting sales, you look at other similar companies in similar areas to see what information you can discover. This forecasting technique is known as the competitive approch.

A competitive approch is a method that includes researching important competition to advantage insight into their products, sales, and advertising methods. imposing more potent enterprise strategies, heading off competition, and shooting marketplace percentages are only a few advantages of undertaking a competitive marketplace evaluation.

Aggressive advantage refers to elements that permit an employer to supply goods or offerings better or more affordably than its rivals. those factors permit the efficient entity to generate more sales or superior margins as compared to its marketplace opponents.

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What is a discretionary example?.

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A discretionary example is when an individual or institution has the freedom to make decisions about how to allocate resources and act on their own initiative.

What is discretionary?
Discretionary
refers to the freedom of choice. You can choose not to take regular baths if you wish; keep in mind, though, that your friends might disagree together on this. Bathing is a discretionary act. Money that isn't set aside for a specific use is frequently referred to as discretionary funding. The decision regarding how discretionary monies should be utilized rests with those in charge. If you're given an assignment to complete at ones discretion, you can choose how to do it or whether you want to do it at all. The word discretionary is derived from the term discretion, which has the potential to mean "the right to decide stuff based on one's own judgement."

For example, a discretionary fund manager has the ability to make decisions about which stocks and bonds to buy and sell without having to consult a client.

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g any amount converted from a traditional ira to a roth ira is: included in taxable income if it is a return of basis. not included in gross income. not subject to the 10% early withdrawal penalty at the time of conversion. subject to the 10% early withdrawal penalty at the time of conversion.

Answers

A 10% early-distribution penalty may also apply to distributions of earnings that are a part of a non-qualified payout. These distributions are taxable.

Are Roth conversions subject to the 10% early withdrawal penalty?

The amount you convert from a traditional to a Roth IRA is not subject to the 10% early withdrawal penalty tax even though it is considered taxable.

A 10% Roth IRA early withdrawal penalty may apply if you withdraw contributions before the five-year window has passed. This constitutes a fine for the entire distribution. Ordinarily, you must pay a 10% penalty on the amount you converted. Each conversion is subject to a separate five-year timeframe.

You'll pay a price from the IRS. The IRS typically imposes a 10% penalty when you file your tax return if you remove money from your 401(k) before you are 5912 years old. The might entail paying the government $1,000 or 10% of that withdrawal of $10,000.

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Other things held constant, if a bond indenture contains a small provision, the yield to maturity that would exist without such a call provision will generally be ______ the YTM with it. (A) higher than (B) lower than (C) the same as (D) either higher or lower, depending on the level of call premium (E) unrelated to Could you explain how you got the answer. Thank you.

Answers

If a bond indenture contains a small provision, the yield to maturity that would exist without such a call provision will generally be lower than the YTM with it.

What is bond indenture?

The agreement that goes with a bond is called a bond indenture. The conditions of a bond indenture detail the characteristics of the bond, any limitations placed on the issuer, and the consequences that will follow if the issuer is unable to make payments on time.

A bank or other financial organization is the trustee for the bond indenture. Bondholders' needs for financial and legal support are the main responsibilities of trustees.

A bond issuer and bondholders enter into an indenture arrangement. The terms of the bond and how the bond is handled on a daily basis are all covered by the indenture agreement, a technical document.

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TRUE/FALSE when calculating ranges for particular variables, it is mathematically possible to obtain negative variables.

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It is completely correct and factually appropriate to mention that it is mathematically possible to obtain negative variables when calculation ranges is ongoing for particular variables. Therefore, the statement given above holds true.

Variables can be referred to or considered as the symbol that is used for the representation of any mathematical object in such a way that it expresses an integral element within a set of mathematical observations. If their coefficients are negative, the variables also become negative.

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which of the following choices is a characteristic of restricted stock? multiple choice question. employees must use cash to purchase the employer's stock once the vesting date is reached. employees may purchase the stock on the grant date, but can not sell their shares until the vesting date. the employee is not required to pay for the stock but rather is given the shares on the grant date. employees must purchase the stock on the vesting date regardless of the market price.

Answers

The employee is not required to pay for the stock but rather is given the shares on the grant date. is a characteristic of restricted stock. So, the correct answer is option A.

What is a Restricted stock?

Usually granted as a form of employee remuneration, a restricted stock unit (RSU) is an award of stock shares. Prior to the transfer of the restricted stock units to the owner, the recipient must satisfy a number of requirements.

Employees who meet certain performance milestones or who have worked for their employer for a predetermined period of time are granted restricted stock units through a vesting scheme and distribution schedule.

While giving employees a stake in their employer's equity, restricted stock units are worthless until they are vested. When the RSUs vested, a fair market value (FMV) was assigned to them. When the RSUs vested, a fair market value (FMV) was assigned to them. Once vested, restricted stock units are treated as income, and some of the shares.

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On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $1,500,000 at 8% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021(Hint: use Weighted-average rate of these two other debts):
$5,000,000, 12% bonds
$3,000,000, 8% long-term note
Construction expenditures incurred during 2021 were as follows:
January 1 $ 600,000 March 31 1,200,000 June 30 800,000 September 30 600,000 December 31 400,000

Answers

The total amount of interest= 177,750

1/1 600,000*12/12= 600,000

3/31 1,200,000*9/12=900,000

6/30 800,000*6/12=400,000

9/30 600,000*3/12=150,000

12/31 400,000*0/12=0

the weighted average cost of = 2,050,000

5,000,000*.12=600,000

3,000,000*.08=240,000

840,000/8,000,000=10.5%

2,050,000-1,500,000=550,000

1,500,000*.08=120,000

550,000*.105=57,750

the total amount of interest= 177,750

Weighted Average Cost (WAC) – what is it?

The COGS and inventory amounts are determined using a weighted average in the Weighted Average Cost (WAC) technique of inventory valuation in accounting. The weighted average cost approach divides the price of the items up for grabs by their quantity of them. Under IFRS accounting as well as GAAP, the WAC approach is acceptable.

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kareem is a human resource specialist at a company with a promote-from-within policy. based on that policy, what method should he include in his recruiting efforts to fill an open position for an accounting supervisor?

Answers

The method that Kareem should include in his recruiting efforts to fill an open position for an accounting supervisor is internal candidates as the primary source for recruitment.

What is the promote-from-within policy?

A promote-from-within policy is an important tool for companies to ensure they are constantly developing the skills and talents of their existing staff. This policy encourages employees to stay with the company and motivates them to work harder and learn more, as they know there will be opportunities for them to progress through the organization. It also helps to create a greater sense of loyalty to the organization and can lead to increased job satisfaction and morale among employees.

Kareem should use internal candidates as the primary source for recruitment. He should first look to existing employees who have the right skill set and experience to fill the open position. He should also consider employees who have shown the potential to excel in the role, even if they don't have the exact qualifications. By promoting from within, he can ensure that the company culture and values are maintained and that the new supervisor is well-versed in the company structure and operations.

It can be concluded that the method that Kareem should include in his recruiting efforts to fill an open position for an accounting supervisor is internal candidates as the primary source for recruitment.

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What are the 6 factors that affect price?.

Answers

The cost of a product, its utility and demand, the level of market competition, governmental and legal restrictions, pricing goals, and marketing strategies are the most significant factors that influence its price.

Price Determinants?Six Cost of the product determines what is produced, The cost of a product, its utility and demand, the level of market competition, governmental and legal restrictions, pricing goals, and marketing strategies are the most significant factors that influence its price.Cost of production, product demand, competitor prices, and customer purchasing power are among the factors that affect how much is produced. Government regulations (v), goals (vi), and marketing techniques (vii) are all factors.Utility and demand, the degree of market competition, governmental and legal restrictions, pricing objectives, and the marketing techniques used.            

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b. suppose you decide to sell the house and use the proceeds of $200,000 to buy risk-free t-bills that promise a 3% rate of return. calculate the expected return and the standard deviation for the resulting portfolio. [hint: note that the correlation coefficient between any asset and the risk-free t-bills is zero.] (do not round intermediate calculations. round your final answers to 2 decimal places.)

Answers

The expected return on the resulting portfolio is 10%.

Calculate the expected return ?

The simplest formula for expected returns includes multiplying the weight of each item in the portfolio by the expected return, and then adding up all of those numbers.

Using this formula

Expected return  = (Portfolio weight ×Portfolio expected return) + (Portfolio weight× risk-free rate)

Where:

Portfolio weight=0.5

Portfolio expected return=16%

Risk-free rate=4%

Let plug in the formula

Expected return  = (0.5×16%) + (0.5× 4%)

Expected return  = 8% + 2%

Expected return  =10%

In conclusion the expected return on the resulting portfolio is 10%.

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if a firm's average fixed cost is $4 and its average total cost is $6, its average variable cost is:

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If a firm's average fixed cost is $4 and its average total cost is $6, its average variable cost is $2.

How do we solve this?

Average total cost - average fixed cost=equals average variable cost.or $6 $4 = $2. The average total cost is calculated as the overall production costs divided by the total output. To put it another way, the average cost is the sum of all fixed and variable expenses divided by the total number of units produced by the company.

What is Average fixed cost?

The cost that remains constant regardless of how many goods or services a firm produces is known as the average fixed cost (AFC). Simply expressed, the average fixed cost (AFC), which is determined by dividing the entire fixed cost by production level, is the fixed cost per unit.

What do you mean by Average Variable cost?

The entire variable cost per unit of production is known as the average variable cost (AVC). Total variable cost (TVC) is determined by subtracting total output (Q). Total variable cost (TVC) refers to all expenses, including labor and supplies, that change depending on output.

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slumar, an accrual basis, calendar year corporation, reported $7,289,200 net income before tax on its financial statement prepared in accordance with gaap. the corporate records reveal the following information. 1. the allowance for bad debts on january 1 was $104,700. 2. write-offs for the year totaled $113,228, and the addition to the allowance for the year was $105,000. 3. slumar incurred $22,000 of entertainment costs and $32,000 of business meals not provided by a restaurant. 4. at its december 16 meeting, slumar's board of directors authorized a $100,000 salary bonus for the corporation's ceo. slumar paid the bonus to the ceo on january 4. the ceo owns 62% of slumar's outstanding stock. 5. slumar was incorporated last year. on its first tax return, it reported a $334,712 net operating loss. compute slumar's taxable income [taxableincome]. (no decimals, no dollar signs, no commas, just the number. not following this direction will result in zero credit!)

Answers

The taxable income for Slumar Co is $ 6992260.

Computation of Slumar taxable income:

Net income before tax                                      = $ 7289200

Bad debt deduction (105000 - 113228)            =  (8228)

Entertainment costs                                          =  (22000)

Business meals costs                                       =  (32000)

Salary bonus of CEO ( non deductible)            = 100000

Loss carry forward                                            = (334712)

Net Taxable Income                                          = 6992260

Thus, taxable income for Slumar Co is $ 6992260.

Note : Salary bonus is not paid in the year of computation of income.

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dade corporation has residual income of $12,520. if net operating income equals $33,000 and the minimum required rate of return is 8%, what are the average invested assets?

Answers

If dade corporation has residual income of $12,520. if net operating income equals $33,000 and the minimum required rate of return is 8%, the average invested assets is $284,500.

How to find the average invested assets?

Using this formula to find the average invested assets

Average total assets = [(Total assets for current year) + (Total assets for previous year) /2] /Minimum required rate of return

Let plug in the formula

Average total assets = [($12,520 + $33,000)/2 ] ÷ 0.08

Average total assets = $22,760 ÷ 0.08

Average total assets = $284,500

Therefore the average total assets  is $284,500.

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What are some factors to consider when choosing a checking account which is most important to you?.

Answers

Insurance, in-person vs online banking, deposit and minimum balance requirements, fees, interest rates, ATM accessibility, and mobile apps are some of the contributing elements.

What is account short answer?

An account is a condensed record of the pertinent transactions associated with a specific head. It keeps track of the volume of transactions as well as their outcomes and directions. A cash account, for instance, will display all of the cash received and spent.

What is account and its types?

Real, personal, or notional accounts are three different types of accounts used in accountancy. The 2 categories of real account are then determined: tangible real account and intangible genuine account. Additionally, there are three distinct subtypes of personal accounts: natural, representative.

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wally's widgets' budgeted fixed overhead is $8,000. the company expects to produce 4,000 units and has a practical capacity of 5,000 units. the fixed overhead rate based on practical capacity is per unit.

Answers

$1.60 per unit is  the fixed overhead rate based on practical capacity is per unit.

What is Practical Capacity?

The most realistic output that a factory can sustain over the long haul is known as practical capacity. It is the maximum theoretical output less any downtime required for routine maintenance on the equipment, machine setup, scheduled employee vacations, and so forth.

What is theoretical capacity?

The level of production that a manufacturer could achieve if all of its tools and processes ran continuously at peak effectiveness is known as theoretical capacity. Ideal capacity is another name for theoretical capacity.

= 8000/5000

= $1.60 per unit

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the keynesian economic framework is based on an assumption that: an increase in government spending will cause the aggregate demand curve to shift to the left. prices and wages are sticky and do not adjust rapidly. an increase in government spending will cause the aggregate supply curve to shift to the left. people can afford a high level of government services.

Answers

The Keynesian economic framework is based on an assumption that: B. prices and wages are sticky and do not adjust rapidly.

Who is John Maynard Keynes?

John Maynard Keynes was a famous British economist during the Great Depression and he was born on the 5th of June 1883. During the Great Depression, John Maynard Keynes advocated and promoted expansionary actions to encourage economic recovery, which was typically part of the Keynesian economic framework.

According to the Keynesian economic framework, it is assumed that both prices and wages are considered as being sticky and as such, they do not adjust rapidly, which makes an economy's recovery from a recession to be very slow.

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Consumer surplus will _____ when a monopolist goes from single-price monopoly to perfect price discrimination. Remain the same increase decrease initially increase and then return to its original level.

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Consumer surplus will increase when a monopolist goes from a single-price monopoly to perfect price discrimination. Remain the same increase decrease initially increase and then return to its original level.

A monopolistic marketplace is a marketplace shaped by the characteristics of a natural monopoly. A monopoly exists when one dealer gives a specific good or carrier to many customers. In a monopolistic market, the monopoly (or dominant corporation) exerts management over the market, allowing it to set the price and supply.

A monopoly is a firm that's the sole seller of its product, and in which there aren't any near substitutes. An unregulated monopoly has marketplace electricity and may have an impact on charges. Examples: Microsoft and home windows, DeBeers and diamonds, your neighborhood natural fuel agency.

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Power Industries has acquired a patent for $16,000. Its useful life is expected to be four years. When the company records the annual amortization it will
Increase amortization expense and decrease the specific intangible asset.

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Power Industries paid $16,000 for a patent. Its expected useful life is four years. When the company records the annual amortization, the amortization expense rises while the specific intangible asset falls.

what is amortization?Amortization is the process of charging the cost of an asset to expense incrementally over its expected period of use, thereby moving the asset from the balance sheet to the income statement. It essentially reflects the use of an intangible asset over the course of its useful life. Amortization is most commonly used to gradually write down the cost of intangible assets with a finite useful life.

How is amortization calculated?Companies typically calculate amortization using the straight-line method for accounting purposes. This method evenly distributes the cost of the intangible asset across all accounting periods that will benefit from it.

The amortization formula is as follows:

   Capitalized Cost = Annual amortization expense / Estimated useful life

Power Industries paid $16,000 for a patent. Its expected useful life is four years. When the company records the annual amortization, the amortization expense rises while the specific intangible asset falls.

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Power Industries paid $16,000 for a patent. Its expected useful life is four years. When the company records the annual amortization, the amortization expense rises while the specific intangible asset falls.

what is amortization?Amortization is the process of charging the cost of an asset to expense incrementally over its expected period of use, thereby moving the asset from the balance sheet to the income statement.It essentially reflects the use of an intangible asset over the course of its useful life.Amortization is most commonly used to gradually write down the cost of intangible assets with a finite useful life.

How is amortization calculated?Companies typically calculate amortization using the straight-line method for accounting purposes.This method evenly distributes the cost of the intangible asset across all accounting periods that will benefit from it.

The amortization formula is as follows:

Capitalized Cost = Annual amortization expense / Estimated useful life

Power Industries paid $16,000 for a patent. Its expected useful life is four years. When the company records the annual amortization, the amortization expense rises while the specific intangible asset falls.

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