The distinguishing feature of a natural monopoly is economies of scale over a large range of output. L&P Power's profit-maximizing quantity and price can be shown on a graph, and government regulation can be used to achieve zero economic profit or allocative efficiency, but the compensation may be necessary for the latter.
a) The main condition that distinguishes a natural monopoly from a typical monopoly is the presence of economies of scale over a large range of output levels. This means that as the production scale increases, the average cost of production per unit decreases, giving the natural monopoly an advantage over potential competitors.
b) The graph for a natural monopoly market shows a downward-sloping demand curve and a U-shaped average total cost curve. The profit-maximizing quantity (QM) occurs where marginal revenue (MR) equals marginal cost (MC), and the profit-maximizing price (PM) is determined by the demand curve at that quantity. The economic profit is shown as the shaded rectangle between the price and average total cost curves.
c) If the government regulates L&P Power to produce the maximum quantity that would allow it to earn zero economic profit, it will produce the quantity (Qr) where the demand curve intersects the average total cost curve at its minimum point. The price (PR) will be equal to the average total cost at this quantity, and there will be no economic profit.
d) If the government regulates L&P Power to produce the allocative efficient quantity, it will produce where the marginal cost (MC) equals the demand curve. At this quantity, the price will be equal to the marginal cost, which is also equal to the average total cost at the minimum point of the average total cost curve. If L&P Power faces a perfectly competitive market for their electricity, they would produce at this point.
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TRUE/FALSE. If you are not getting interviews, reduce the number of sources you are using to find leads and concentrate on using monster and craigslist.
False. If you are not getting interviews, it is not advisable to reduce the number of sources you are using to find leads and concentrate solely on Monster and Craigslist.
Limiting your job search to only a few sources may restrict your opportunities and limit your exposure to potential job openings.In today's competitive job market, it is important to explore a variety of sources to increase your chances of finding suitable job opportunities. Utilizing multiple job boards, professional networking platforms, company websites, career fairs, and personal connections can provide a wider range of job leads and increase your chances of securing interviews.By diversifying your job search strategies, you can tap into a larger pool of potential employers and increase the likelihood of finding a job that aligns with your skills and interests. It is important to cast a wide net and explore various avenues to maximize your chances of securing interviews and ultimately landing a job.
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a certain city reports the following year-end total assets: general fund $ 18,400,000 library fund (a special revenue fund) 2,900,000 debt service fund 2,600,000 total governmental funds 26,300,000 total governmental and enterprise funds combined 51,250,000 based on this information, which funds should be reported as major funds?
The general fund ($18,400,000) and the debt service fund ($2,600,000) should be reported as major funds.
Major funds are defined as those funds that are considered significant in terms of size and scope. In the case of a city, the general fund and the debt service fund are typically considered major funds because they play a significant role in the overall financial operations of the city. The general fund is the main operating fund for the city and is used to finance the day-to-day operations, while the debt service fund is used to pay for long-term debt obligations.
Based on the information provided, the general fund and the debt service fund should be reported as major funds.
Total governmental funds: $26,300,000 (sum of the general fund, library fund, and debt service fund)
Total governmental and enterprise funds combined: $51,250,000
So, the general fund ($18,400,000) and the debt service fund ($2,600,000) should be reported as major funds.
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Which of the following may cause a favorable sales volume variance of the revenues? O Actual sales in dollars are greater than the master budget sales in dollars. O The flexible budget sales in dollars are greater than the static budget sales in dollars. O Actual sales in dollars are less than the static budget sales in dollars. O Actual net income for the subunit is greater than budgeted net income.
The correct answer to the given question about favorable sales of revenue is option B) The flexible budget sales in dollars are greater than the static budget sales in dollars.
An example of a budget that includes predicted values for inputs and outputs that are thought of before the period in question begins is a static budget. A static budget, which is an estimate of revenues and expenses for a specific period, remains constant despite changes in sales and production amounts. The figures from static budgets can, however, be very different from the real results as compared to those that are discovered after the fact. Accountants, finance experts, and management teams of businesses utilize static budgets to assess the financial success of a company over time. A flexible budget is one that is based on various sales volumes. A flexible budget is used to modify the static budget for each anticipated level of production. This adaptability allows management to anticipate how the budgeted numbers will change when the sales volume varies.
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Which type of investment works by taking investors’ money, investing that collective money in stocks, bonds, and other investments, and managing this portfolio for the investors? A. government bonds B. common stocks C. mutual funds D. savings accounts
Answer:
Option C
Mutual fund is the type of investment that works by taking investors’ money, investing that collective money in stocks, bonds, and other investments, and managing this portfolio for the investors
Explanation:
Mutual fund is basically a form of investment in which different investors pour in their money in various forms of securities such as stocks and bonds. These securities are taken care of by the Relationship/Money manager. This form of investment reduce the risk as investing individual's money into securities in not safe subjected to variation in market
Hence, option C is the correct answer
Answer:
Mutual funds
I got it right on my test, d;
If a leader creates a vision that emphasizes that everyone in the company is important, the dominant value being expressed is ______.
The main answer to your question is "inclusivity". If a leader creates a vision that emphasizes the importance of everyone in the company, the dominant value being expressed is inclusivity.
This value promotes the idea that all individuals, regardless of their background, position, or expertise, are essential to the organization's success and should be treated with respect and consideration.
When a leader creates a vision that emphasizes the importance of every individual in the company, they are expressing the value of inclusivity. This means that every person, regardless of their role or position, is considered to be valuable and essential to the success of the organization. Inclusivity is a key component of a healthy and productive work culture, as it fosters a sense of belonging and encourages collaboration and teamwork. Overall, the emphasis on inclusivity in a company vision is an important step towards creating a positive and effective workplace.
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What is the main reason that business organizations buy products?
Businesses purchase products to promote operational effectiveness, satisfy consumer requests, maintain competitiveness, boost sales and revenue, and enhance quality.
Business entities purchase goods to fulfil a variety of requirements and accomplish a variety of objectives. Among the main causes of this are: To increase operational efficiency: Businesses may purchase goods to enhance their operational procedures and make them more effective, for instance by investing in software or automation solutions to expedite workflow. To satisfy customer demands: Businesses may purchase goods in order to satiate the wants and needs of their clients, for instance by investing in cutting-edge goods that they can sell to them. These are some of the basic justifications for product purchases by commercial enterprises. The organization's goals and objectives, as well as the particular market and industry they compete in, will ultimately determine the precise reason.
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Disadvantages of choosing a job that is extremely popular or in demand
The disadvantage of choosing a job that is very popular or a job that is in high demand is that after a while such a job may become saturated or it would become monotonous.
What is a high demand job?This is the term that is used to refer to a job that the people that wpould employ labor are constantly in need of. Such a job is one that would require the people that have the qualification to opt in and get the places and the roles that they are to fill.
The issues that may arise from such a job that is in high demand is that after a period, such a job may have a lot of persons that would want to fulfil the role.
The number of qualified persons may become more than the job that is available for the people to do in the long run.
Hence this is a disadvantage. Therefore I would conclude by saying that the disadvantage of choosing a highly popular job is that the number of persons that are willing to fulfil the role may exceed the job overtime.
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Marion is making trail mix for a group camping trip. She buys 3 pounds of granola for $3 per pound, and 0. 75 pounds of raisins for $2 per pound. The equation 3(3) 0. 75(2) = (3 0. 75)x models the situation, where x is the price per pound of the trail mix. What is the price of the trail mix? $0. 36/lb $2. 50/lb $2. 80/lb $6. 75/lb.
From the computation, the price of the trail mix will be $10.50.
From the information given, we're informed that Marion buys 3 pounds of granola for $3 per pound, the cost of the granola will be:
= $3 × 3 = $9.
She also buys and 0.75 pounds of raisins for $2 per pound, therefore, the cost of the raisin will be:
= 0.75 × $2 = $1.50
Therefore, the price of the trail mix will be:
= $9 + $1.50
= $10.50
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2. Is his theory (Michael Lewis) of selecting players any good? In his eyes, what makes a player valuable?
Michael Lewis, the author of "Moneyball," has a theory of selecting players that focuses on statistical analysis and undervalued skills. His approach has been successful in Major League Baseball and has changed the way many teams evaluate and acquire talent.
In Lewis' eyes, a player's value is determined by their ability to produce measurable results, such as on-base percentage, rather than traditional metrics like batting average or home runs. He also values skills that may be overlooked by other teams, such as plate discipline or defensive abilities.
Overall, Lewis' theory has proven to be effective, but it is not without criticism. Some argue that it overlooks the intangible qualities that make a successful team, such as leadership and teamwork. However, in a sport where winning is ultimately determined by statistics, Lewis' approach has demonstrated its value.
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functions of Okhal best answer will be chosen as brainnest
Answer:
The cerebellum receives information from the sensory systems, the spinal cord, and other parts of the brain and then regulates motor movements. The cerebellum coordinates voluntary movements such as posture, balance, coordination, and speech, resulting in smooth and balanced muscular activity.
Explanation:
thanks me later po
Answer:
the function of are as given below:
it is long lasting
smooth and easy to use
helps to grind different species
Explanation:
mark as a brainlist if it is correct
setting prices higher than the competition can help create an image of quality. True or False
The given statement "Setting prices higher than the competition can help create an image of quality. " is True. Setting prices higher than the competition can create a perception of higher quality, exclusivity, and value.
This is known as premium pricing, and it can attract customers who are willing to pay more for a perceived higher quality product or service. However, it is important to ensure that the higher price is justified by the actual quality of the product or service, as customers may become dissatisfied if they feel that they are not receiving value for their money.
Setting prices higher than the competition can indeed help create an image of quality. When a product or service is priced higher than its competitors, it often creates a perception of exclusivity and premium value. This perception is based on the belief that higher prices reflect higher quality, craftsmanship, or superior features.
Price is often associated with quality because consumers tend to equate higher prices with higher value and superior performance. When a product is priced higher, it may signal to customers that the brand is confident in the quality and unique attributes of its offerings. This can result in a perception that the product is worth the higher price tag.
Furthermore, higher prices can create a sense of scarcity and desirability. The limited availability of a premium-priced product can enhance its perceived value and desirability among consumers.
However, it is important to note that simply raising prices alone does not guarantee success. The product or service must live up to the quality expectations associated with the higher price.
If customers perceive that the higher price is not justified by the actual quality or value delivered, it can lead to negative customer experiences and harm the brand's reputation. Ultimately, the balance between price and perceived quality needs to be carefully managed to effectively create an image of quality.
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Which of the following is characteristic of a centrally planned economy?
easy career class question.
Answer business
hope this helps
Which of the following is NOT affected by marketing?
A. The locations you shop
B. The items you purchase
C. The product regulations
D. The use of the products
Answer:
D, The use of products.
The use of the products is not affected by marketing. Thus, option D is appropriate.
Marketing describes the actions a business takes to encourage the purchase or sale of a good or service. Advertising, selling, and delivering goods to customers or other firms are all included in marketing. Affiliates perform some marketing on behalf of businesses.
Marketing is the procedure of discovering, developing, and providing value to satisfy a target market's needs in terms of products and services, which may also involve choosing a target audience. The process of developing, communicating, delivering, and trading offerings that are valuable to customers, clients, partners, and society at large collectively is known as marketing.
Thus, option D is correct.
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Conducting a search of the store is part of store closing duties. Why?
Compare these two sections of resumes. Which is more appropriate? a. - Completed nine-hour training course • Ran simulation software, • Used test probe to test over one hundred parts - Started a test plan document. b. Completed nine-hour training course • Ran simulation software • Used test probe to test over one hundred parts • Started a test plan document JURG Fil, Ir. Ob a
Answer:
the second one
Explanation:
george and ringo met at law school and decide to start a small law practice after graduation. they agree to split revenues and expenses evenly. the most common form of business organization for a business such as this would be a
George and Ringo met at law school and choose to begin a little regulation practice after graduation. they consent to equitably divide incomes and costs. the most well-known type of business association for a business like this would be a partnership. option (A) is correct.
A partnership is a type of business where at least two individuals share possession, as well as the obligation regarding dealing with the organization and the pay or misfortunes the business creates.
The understanding turns into the premise of the connection between the accomplices. It isn't required that such an arrangement is written down. An oral understanding is similarly legitimate.
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This question is not complete , Here I am attaching the complete question:
George and ringo met at law school and decide to start a small law practice after graduation. they agree to split revenues and expenses evenly. the most common form of business organization for a business such as this would be a ________
(A) partnership.
(B) HUF
(C) economic entity
(D) Limited liability partnerships
cab inc. has 1,000 shares of 4%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at december 31, 2012. what is the annual dividend on the preferred stock?
To calculate the annual dividend on Cab Inc.'s preferred stock, we need to first determine the total par value of the preferred stock.
This can be calculated by multiplying the number of preferred shares (1,000) by the par value per share ($100), which equals $100,000.
Next, we need to calculate the percentage of the par value that is paid out as a dividend each year. The question states that the preferred stock has a 4% dividend rate. Therefore, we can multiply the total par value of the preferred stock ($100,000) by the dividend rate (4%), which equals $4,000.
So, the annual dividend on Cab Inc.'s preferred stock is $4,000. This means that each year, Cab Inc. must pay out $4,000 to its preferred stockholders before it can pay any dividends to its common stockholders. Additionally, the preferred stockholders have a cumulative feature, which means that if Cab Inc. misses a dividend payment, it must make up the missed payments before it can pay dividends to its common stockholders.
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Fixed expenses are expenses that do not change from month to month, and variable expenses
are expenses that can fluctuate from month to month. Complete the second column of the
chart by determining if each expense is fixed or variable. (10 points - 2 points each)
Housing expense is a fixed expense, Food expense is a variable expense, Insurance and medical expense are variable expenses, Entertainment expense is variable expense and Savings for retirement expense is also a variable expense.
What do you mean by the fixed expenses and variable expenses?Fixed expenses are those expenses, which remain constant in each month. Some of the fixed expenses are monthly rent, insurance premium etc.
Variable expenses are those expenses, which can be changed. It is unpredictable such as repairs, medical expenses etc.
Fixed expenses generally remain the same each month.
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There are several steps you can take to reduce the potential of being a victim
of consumer fraud, including.
Answer:
Here are some steps to be taken to avoid being a victim of consumer fraud:
Spot Imposters: Scammers often pretend to be someone else, especially one you can trust, like a government official.Online searching: Search about the company of product online to see if it is legit or not.Don't pay in advance: Scammers always try to get money in advance, in terms of taxes or fees.Discuss with someone: Before giving someone your money, talk to someone you trust or preferably to an expert.Personal information: Don't given any unknown person your personal information, money, or any kind of financial detailsPastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below.
Account Title Debits Credits
Cash35,500
Accounts receivable43,000
Supplies3,000 Inventory63,000
Notes receivable23,000
Interest receivable0
Prepaid rent2,500
Prepaid insurance9,000
Office equipment92,000
Accumulated depreciation 34,500
Accounts payable 34,000
Salaries payable 0
Notes payable 53,000
Interest payable 0
Deferred sales revenue 3,500
Common stock 81,000
Retained earnings 36,000
Dividends7,000
Sales revenue 161,000
Interest revenue 0
Cost of goods sold85,000
Salaries expense20,400
Rent expense12,500
Depreciation expense0
Interest expense0
Supplies expense2,600
Insurance expense0
Advertising expense4,500
Totals 358,600 358,600 Information necessary to prepare the year-end adjusting entries appears below.1. Depreciation on the office equipment for the year is $10,300.2. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $900.3. On October 1, 2021, Pastina borrowed $50,600 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years.4. On March 1, 2021, the company lent a supplier $20,600 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022.5. On April 1, 2021, the company paid an insurance company $6,600 for a one-year fire insurance policy. The entire $6,600 was debited to prepaid insurance.6. $560 of supplies remained on hand at December 31, 2021.7. A customer paid Pastina $2,300 in December for 900 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue.8. On December 1, 2021, $1,200 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $600 per month. The entire amount was debited to prepaid rent.Prepare closing entries.
The necessary December 31, 2021, adjusting journal entries are: Debit Depreciation expenses $10,300, Credit Accumulated depreciation $10,300.
Journal entriesPastina Company Adjusting entries
Debit Depreciation expenses $10,300
Credit Accumulated depreciation $10,300
Debit Wages expense $900
Credit Wages payable $900
Debit Interest expense $1,518
($50,600 × 12% × 3/12)
Credit Interest payable $1,518
Debit Interest receivable $1,373
($20,600 × 8% × 10/12)
Credit Interest revenue
Debit Prepaid insurance $4,125
($6,600 × 15/24)
Credit Insurance expense $4,125
Debit Supplies expense $340
($900 − $560)
Credit Supplies $340
Debit Sales revenue $2,300
Credit Unearned revenue $2,300
Debit Rent expense $600
Credit Prepaid rent $600
Therefore the necessary December 31, 2021, adjusting journal entries are: Debit Depreciation expenses $10,300, Credit Accumulated depreciation $10,300.
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How can you avoid spending more than what is in your bank account?
1. Check your bank statement once a month.
2. Ask your financial institution to notify you when you are close to $0 in your account.
3. Keep your own records to compare with your financial institution's records.
4. None of the above
Concord Company has other operating expenses of $259000. There has been an increase in prepaid expenses of $19000 during the year, and accrued liabilities are $15100 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Concord's cash payments for operating expenses? O $224900 O $293100 O $255100 O $262900
Option O $224900 is the correct cash payments for operating expenses for the Concord company.
How to find?Given below is the cash payments for operating expenses for the Concord company when using the direct method of reporting cash flows from operating activities.
Cash payments for operating expenses = Operating expenses - increase in prepaid expenses + decrease in accrued liabilities.
Using the above formula, cash payments for operating expenses for the Concord company can be calculated as follows;
Operating expenses = $259000
Increase in prepaid expenses = $19000
Accrued liabilities are $15100 lower than in the prior period, which implies there is a decrease in accrued liabilities.
Hence, decrease in accrued liabilities = $15100.
Therefore, cash payments for operating expenses = $259000 - $19000 - $15100
= $224900.
Hence, the correct option is; Option O $224900 is the correct cash payments for operating expenses for the Concord company.
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What is your standard deviation of demand during lead time if your average lead times = 2 weeks, standard deviation of demand = 6, average demand is 24, and standard deviation of lead time is 1 week. a. 45.33 b. 33.94 c. 37.89 d. 29.45
The lead-time lead-time demand standard deviation If your standard deviation of demand is 6, your average demand is 24, and your standard deviation of lead time is 1 week 33.94, then your average lead times are 2 weeks.
If your typical lead times are two weeks, what is the standard variation of demand during lead time?If your average lead times are two weeks, your standard deviation of demand is six, your average demand is twenty-four, and your standard deviation of lead time is one week,
How much of a lead time does the demand standard deviation range from?Lead time multiplied by the average demand for the week equals average demand during lead time. The square root of the lead time is multiplied by the standard deviation of the demand for the lead time, which is equal to the demand standard deviation per week.
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John is considering the purchase of a lot. He can buy the lot today and expects the price to rise to $15,900 at the end of 10 years. He believes that he should earn an investment yield of 8 percent compounded annually on his investment. The asking price for the lot is $8,000. eBook Required: a. What is the internal rate of return compounded annually on the investment if John purchases the property for $8,000 and is able to sell it 10 years later for $15,900? Note: Do not round your intermediate calculations and round your final answer to 2 decimal places. b. Should he buy the lot? Print % ២ a. Internal rate of return Should he buy the lot?
a. Calculation of internal rate of return (IRR) :To calculate the internal rate of return (IRR) of this investment, you need to use the formula for compound interest and set the equation to equal zero. In this case, you invest $8000 in Year 0, and you expect to receive $15,900 at the end of Year 10.
The future value (FV) is positive, and the present value (PV) is negative, and the interest rate (r) is the unknown. Hence we can write as follows:PV = -$8,000; FV = $15,900; n = 10 yearsr = ?FV = PV × (1 + r)n$15,900 = -$8,000 × (1 + r)10Now, solve for r (IRR) using the logarithmic method:$\log(1 + r) = \frac{\log(1.9875)}{10}$where $\log(1.9875) ≈ 0.2986$.
Hence$\log(1 + r) ≈ \frac{0.2986}{10} = 0.02986$r = antilog$(0.02986) - 1 ≈ 0.0773$ or 7.73%Therefore, the IRR is approximately 7.73% per annum compounded annually.
b. Should he buy the lot. As the calculated IRR (7.73%) is greater than the expected rate of return (8%), he should purchase the lot as it is likely to yield more than 8% and hence the investment seems to be worthwhile for him. Hence he should buy the lot.
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A company that is organized by function will group its employees into teams based on what?
This organisational structure divides workers into functional areas according to their areas of competence. These functional categories frequently correspond to phases of the value chain like operations, R&D, and marketing and sales.
What is meant by organisational structure?The way tasks are assigned, coordinated, and managed in order to achieve organisational goals is determined by the organisational structure. The foundation upon which standard operating procedures and routines are built is provided by organisational structure, which influences organisational action. Functional, multi-divisional, flat, and matrix organisational structures are the four different types.An organisational structure is a framework for managing specific tasks in order to accomplish a strategic goal. All of these activities have guidelines, expectations, and roles.An organization's structure serves as a tool for its members to carry out their duties in an effective and timely manner as well as for the organisation as a whole to achieve its goals and objectives. In addition to assigning employees their specific work duties and responsibilities, an organisational structure aids management in coordinating and managing operations.To learn more about organisational structure, refer to:
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what effect would an effective minimum wage have on a perfectly competitive market?
In a aggressive exertions marketplace, an boom within side the minimal salary reduces employment and will increase unemployment. A minimal salary may want to boom employment in a monopsony exertions marketplace on the equal time it will increase wages.
The required details for unemployment in given paragraph
The time period unemployment refers to a scenario in which someone actively searches for employment however is not able to locate paintings. Unemployment is taken into consideration to be a key degree of the fitness of the economy. The maximum regularly used degree of unemployment is the unemployment rate. It's calculated via way of means of dividing the wide variety of unemployed human beings via way of means of the wide variety of human beings within side the exertions force. Many governments provide unemployment coverage to sure unemployed people who meet eligibility requirements.
Unemployment is a key financial indicator as it alerts the ability (or inability) of employees to attain gainful paintings and make contributions to the efficient output of the economy. More unemployed employees suggest much less general financial production.
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A coating machine costs $125,000. The coating solution costs $.15 per piece. You expect the coating machine to coat 50,000 parts over its useful life. What is the machine cost per part?
Answer:
$17.50
Explanation:
Cost of 50,000 times coating solution:
15 * 50,000 = 750,000 ($)
So 750,000 + 125,000 = 875,000 ($) ← Total cost
Single cost is 875000 ÷ 50,000 = 17.5 ($)
Performance obligations are satisfied when the seller transfers ____ of goods or services to the customer
Performance obligations are satisfied when the seller transfers control of goods or services to the customer.
Performance obligations refer to the promises made by a company to its customers to provide goods or services in exchange for payment or other forms of consideration. These promises may be explicit or implicit and can be made in various forms such as contracts, sales orders, or marketing materials.Under the revenue recognition standard known as ASC 606 (or IFRS 15), a company must identify all of its performance obligations in a contract with a customer and allocate the transaction price among them. This allocation must be based on the relative standalone selling prices of each performance obligation.For example, if a company sells a product that includes installation and maintenance services, the company must identify each performance obligation separately and allocate the transaction price accordingly. If the standalone selling price of the installation service is $1,000 and the standalone selling price of the maintenance service is $500, and the total transaction price is $1,500, then the company must allocate $1,000 to the installation service and $500 to the maintenance service.Learn more about performance obligations: https://brainly.com/question/15874481
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Zenk Co. wrote off obsolete inventory of $100,000 during 2016. What was the effect of this write-off on
Zenk’s ratio analysis?
a. Decrease in the current ratio but not the quick ratio.
b. Decrease in the quick ratio but not in the current ratio.
c. Increase in the current ratio but not in the quick ratio.
d. Increase in the quick ratio but not in the current rattio.
The correct option is A. If inventories were composed entirely of current assets, then depreciation would decrease the current ratio and have no effect on the quick ratio. The effect of the $100,000 write-off of obsolete inventory on Zenka's ratio analysis would depend on the inventory composition.
This is because current assets are calculated as current assets divided by current liabilities, so if current assets decrease, the current ratio will also decrease. However, if inventories were composed of both current and fixed assets, then both the current and quick ratios would decrease. This is because the portion of current assets from depreciation would decrease the current ratio, while the portion of fixed assets would decrease the current ratio because it would decrease the numerator of the current ratio equation.
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