Answer:
False
Explanation:
A lender is any individual or institution that advances funds to another entity on conditions that they repay. Most lenders are commercial institutions that make funds available to individuals and firms at a cost. In other words, lenders provide credit services to households and businesses.
Borrowers seek funds from lenders. It is the borrower who requires funds to finance planned activities.
Which of the following explains why a researcher would use an interview instead of an online survey?
O The process needs to be cost effective.
O The interviewer can record both observations and responses.
O The data needs to be quickly compiled.
O The interviewer can target a specific population.
Please help me
Hey there!
I believe the answer to your question would be B.) The interviewer can record both observations and responses.
In an online survey, you can just put random answers, but in an actual interview, the interviewer can catch you off guard, and they can see expressions and hear tone of voice, to really understand your answer.
Hope it helps and have a great day!
The answer is:
B) The interviewer can record both observations and responses.On January 1, 2024, Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1, 2034. The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on December 31. The 12/31/24 bond carrying value is approximately:
Answer: The bond carrying value is approximately $3,332
Explanation:
Given that
Year Int. Expense(A) Interest pmt(B) Pre. amortization Bonds carrying val
9% of previous 11% of face B-A Issue price - prem
carrying value value Amort
0 0 0 0 $3,385
1 (0.09×3385) (0.11×3000) (330 - 304.65) (3,385 - 25.35 )
$304.65 $330.00 $25.35 $3,359.65
2 (0.09×3,359.65) (0.11×3000) (330 - 302.37) (3,359.65-27.63)
$302.37 $330.00 $27.63 $3,332.02
The bond carrying value is approximately $3,332
Suppose a relative has promised to give you $1,000 as a gift the day you graduate. Assuming a constant interest rate of 5%, consider the present and future values of this gift depending on whether you graduate in 1 year or in 2 years.
Complete the first row of the table by determining the value of the gift in one and two years if you become engaged today.
Present Value Value in One Year Value in Two Years
Date Received (Dollars) (Dollars) (Dollars)
Today 1,000.00 ? ?
In 1 year ? 1,000.00
In 2 years ? 1,000.00
Complete the first column of the table by computing the present value of the gift if you get engaged in one year or two years. The present value of the gift is _________ if you get engaged in two years than it is if you get engaged in one year.
Answer:
a.
Date Received Present Value Value in 1 year Value in 2 years
Today 1,000 $1,050 $1,102.50
In 1 year $952.38 $1,000
In 2 years $907.03 $1,000
Future value in 1 year if $1,000 is received today:
= 1,000 * (1 + 5%)
= $1,050
Future value in 2 years:
= 1,000 * ( 1 + 5%)²
= $1,102.5
Present value if $1,000 received in a year:
= 1,000/(1 + 5%)
= $952.38
If received in 2 years:
= 1,000 / (1 + 5%)²
= $907.03
b. The present value of the gift is smaller if you get engaged in two years than it is if you get engaged in one year.
Net working capital is expected to increase by $25,000 in year 5 of a project. If this extra working capital is recovered when the project ends in year 6, what is the effect on the project's net present value, if the cost of capital is 15%
Answer:
c. NPV will decrease by $1,621.23.
Explanation:
Missing word "Hint: what happens to cash flow when net working capital increases and decreases? a. NPV will not be affected because the $25,000 will all be recouped b. NPV will decrease by $25,000. c. NPV will decrease by $1,621.23. d. NPV will increase by $1,864.41. 19"
Present Value of Net Working Capital investment in Year 5 = $25000 / (1+15%)^5
= -$25,000 / (1+15%)^5
= -$25,000 / 2.01135719
= -$12,429.418
= -$12,429.42
Present Value of Net Working Capital Recovered in Year 6 = $25000 / (1+15%)^6
= $25,000 / (1+15%)^6
= $25,000 / 2.31306077
= $10,808.1899
= $10,808.19
Effect on the project's net present value = Present Value of Net Working Capital investment in Year 5 + Present Value of Net Working Capital Recovered in Year 6
= -$12,429.42 + $10,808.19
= -$1,621.23
Therefore, NPV will decrease by $1,621.23.
With rapid advancements of science and technology, the emergence of artificial intelligence is transforming traditional practices and systems. Its impact on recruitment and selection is evident that’s why it is predicted that the efficiency of artificial intelligence in screening resumes is exceeding 60,000 times as compare to doing it manually. However, the critics raise questions on its effectiveness. They are of the view that resumes solely cannot present the in-depth potentials of candidates therefore without having personalized interactions a perfect person-organization fit can’t be established.
Keeping in mind the pros and cons, how you foresee future of Artificial Intelligence in recruitment and selection process. Do you think it should eventually replace human recruiter or not? Discuss with logical arguments to prove your stance.
Explanation:
The globalized and competitive business environment requires companies to be in line with new trends and market changes that happen very quickly around the world. Organizational automation is already happening on a large scale in large companies and the tendency is for artificial intelligence to reach more and more organizations, regardless of the sector or the size of the company.
In the human resources department, the crossing of information from the company and candidates can assist in a more effective and standardized recruitment and selection process for the company, with the chances of aligning the company's values and skills with those of the professional sought. to complete the staff.
The main advantages of artificial intelligence in HR is the speed with which the process is carried out, the lowest cost and the highest standardization, but although it is advantageous, it is still not a sufficient process to replace the human recruiter in the decisive stages of the process, as artificial intelligence systems still need to achieve the subjectivity inherent to human beings, which is essential for the creation of the expected organizational climate.
Mills Corporation acquired as a long-term investment $250 million of 8% bonds, dated July 1, on July 1, 2021. Company management has classified the bonds as an available-for-sale investment. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Mills paid $290 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $270 million.
Required:
a. Prepare the journal entry to record Mills'investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate.
b. At what amount will Mills report its investment in the December 31, 2021, balance sheet?
c. Suppose Moody's bond rating agency upgraded the risk rating of the bonds, and Mills decided to sell the investment on January 2 2022 for $300 million. Prepare the journal entry to record the sale.
Answer:
A. 07.01.2021
Dr Investment in Bonds A/c 250
Dr Premium on Bond Investment A/c 40
Cr Cash 290
12.31.2021
Dr Cash 10
Cr Premium on Bonds 1.3
Cr Interest Revenue 8.7
B. $251.3
C. Jan-02
Dr Fair Value Adjustment 30
Cr Unrealised Gain or loss 30
Jan-02
Dr Cash 300
Cr Premium on Bonds A/c 38.7
Cr Gain On sale of Investment or Profit on sale of Investments 11.3
Cr Investment in Bonds A/c 250
Explanation:
a. Preparation of the journal entry to record Mills'investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective market) rate.
07.01.2021
Dr Investment in Bonds A/c 250
Dr Premium on Bond Investment A/c 40
(290-250)
Cr Cash 290
(Being To record investments in Bonds)
12.31.2021
Dr Cash 10
[(8%/2)* 250] semiannually
Cr Premium on Bonds 1.3
(10-8.7)
Cr Interest Revenue 8.7
[(6%/2)* 290] semiannually
(Being To record Interest)
b. Calculation for At what amount will Mills report its investment in the December 31, 2021, balance sheet
Book Value 290
Add:Premium on Bonds ( -40+1.3) -38.7
Amount to be reported 251.3
(290-38.7)
Therefore the Amount to be reported in Balance sheet will be Book Value of the amount of 251.3
c. Preparation of the journal entry to record the sale.
Jan-02
Dr Fair Value Adjustment 30
Cr Unrealised Gain or loss 30
(300-270)
Jan-02
Dr Cash 300
Cr Premium on Bonds A/c 38.7
(40-1.3)
Cr Gain On sale of Investment or Profit on sale of Investments 11.3
[300-(250+38.7)]
Cr Investment in Bonds A/c 250
(Being To record the sale)
LinkedIn targets a specific demographic: working professionals. They tend to be older and better educated. Why might advertisers be more interested in this group over others
Answer: Buying power
Explanation:
As the question says, LinkedIn has working professionals which means that these are people with income sources that can enable them to purchase goods and services.
Advertisers would therefore target them so that they may get them to purchase the goods and services they are advertising because these working professionals have a better chance of patronising the advertisers than other groups of people who may not have the income requirements necessary to do so.
g 0. Antipoverty programs U.S. government transfer payments that are made in the form of goods or services are known as
Answer:
These antipoverty programs are known in the U.S. as in kind transfers
Explanation:
There are several examples of in-kind transfers in the U.S. One example is Medicare, the health insurance program for the elderly and the disabled. Beneficiaries obtain a transfer payment in the form of a service: medical care.
Another example is food stamps. Food stamps are a form of voucher or coupon that beneficiaries can only exchange for food items in certain locations. This is transfer payment in the form of a good.
s company recently experienced a major system outage due to the failure of a critical component. During that time period, the company did not register any sales through its online site. Which type of loss did the company experience as a result of lost s
Answer:
Opportunity cost
Explanation:
opportunity cost in microeconomics can be regarded as alternative cost it can be explained as loss in term of potential gain that one incurred from the alternatives when one chose one specific alternative over other alternatives
Assume the real rate of return is 2.97% and the inflation rate is 2.20%. Find the nominal rate of return using the exact formula.
Answer:
Nominal rate of return= 0.0517 = 5.17%
Explanation:
Giving the following information:
Real rate of return= 2.97%
Inflation rate= 2.20%
To calculate the nominal rate of return, we need to use the following formula:
Real rate of return= nominal rate of return - inflation rate
Nominal rate of return= Real rate of return + inflation rate
Nominal rate of return= 0.0297 + 0.022
Nominal rate of return= 0.0517 = 5.17%
What kind of business would you create if you had the chance and why
[tex] \huge \bold{answer}[/tex]
Writing ebooks
Similar to blogging, e-books allow you to teach others new skills through a digital book that will cost readers a fraction of the price of a printed copy while offering them the same level of education. E-books are free to start and can be sold on huge platforms such as Amazon. You could even donate copies to not-for-profit organizations who believe in your cause.
Assume that Bunch Inc. has an issue of 18-year $1,000 par value bonds that pay 7% interest, annually. Further assume that today's expected rate of return on these bonds is 5%. How much would these bonds sell for today
Answer:
$1,244
Explanation:
According to the scenario, the given data are as follows:
Future value (FV) = $1,000
Interest = 7%
So, Payment (PMT) = $1,000 × 7% = $70
Rate of return (rate) = 5%
Time period (Nper) = 18 years
So, by putting the following data in PV formula in excel sheet,
Attachment is attached below.
Present value of Bonds = $1,233.79 or $1,244
Golden Eagle Company prepares monthly financial statements for its bank. The November 30 adjusted trial balance includes the following account information:
November 30
Debit Credit
Supplies $1,650
Prepaid Insurance 6,600
Salaries Payable $10,300
Deferred Revenue 2,300
The following information is known for the month of December: Purchases of supplies during December total $3,800. Supplies on hand at the end of December equal $3,150. No insurance payments are made in December. Insurance cost is $1,650 per month. November salaries payable of $10,300 were paid to employees in December. Additional salaries for December owed at the end of the year are $15,300. On November 1, a tenant paid Golden Eagle $3,450 in advance rent for the period November through January, and Deferred Revenue was credited for the entire amount.
Required:
Show the adjusting entries that were made for supplies, prepaid insurance, salaries payable, and deferred revenue on December 31.
Answer:
Date General Journal Debit Credit
Dec 31 Supplies expenses $2,300
(1,650+3,800-3150)
Supplies $2,300
(To record the supplies used during the period)
Dec 31 Insurance expenses $1,650
Prepaid expenses $1,650
(To record the insurance expired for December)
Dec 31 Salaries expenses $15,300
Salaries payable $15,300
(To record the unpaid salaries)
Dec 31 Deferred revenue $1,150
(3450/3 months)
Rent revenue $1,150
(To record the revenue earned during the period)
Journal entries are used in accounts for the purpose of recording financial transactions either economic or non-economic for the business.
Adjustment entries are used for making final income and expenditure recordings at the point of their occurrence.
The adjustment entry for the given dataSupplies expenses Dr $2,300
To supplies $2,300
The supplies are recorded during 31 December:
[tex]1,650+3,800-3150\\=2300[/tex]
Dec 31 Insurance expenses Dr. 1650
To Prepaid expenses 1650
Dec 31 Salaries expenses Dr. 15,300
To Salaries payable 15,300
Dec 31 Deferred revenue Dr. 1150
To Rent revenue 1150
Revenue earned during this period is calculated by:
[tex]\frac{3450}{3} \\=1150[/tex]
Learn more about accounting entries here:
https://brainly.com/question/5713357
Explain how IT (Information Technology) impacts your career and the positive outlook for IS (Information Systems) management careers
Answer:
IT has impacted the career of individuals to great extend. The ease of using softwares and new technology has made life easier. The information system has led the data storage easier. Huge data can be stored and found within seconds when needed.
Explanation:
The management information system has made individuals store data within the storage disk. This data can be found in minutes.
Define economic profit. Explain how economic profit is different than accounting profit. Why is it important for economists to measure economic profit rather than just sticking to the accounting profit used in accounting and finance?
Answer:
a. Economic profit is the excess of revenue over both opportunity (implicit) and explicit costs. Explicit costs are the cost of all inputs used.
b. The difference between economic profit and accounting profit is that in calculating economic profit, both the explicit costs and the implicit or opportunity costs are deducted from the revenue. Whereas, in computing the accounting profit, only the explicit costs are deducted from the revenue.
c. Economists measure economic profit rather than accounting profit because economists believe that the real cost of an output includes the economic or opportunity cost (potential benefits lost as a result of the course of action chosen).
Explanation:
Opportunity cost is the implicit cost incurred, which is equal to the potential benefits lost by an individual or a business, when an alternative is chosen instead of the other alternative. It is an important concept in the computation of economic profit. The concept ensures that both implicit and explicit costs are considered when determining the profits generated by a business.
rate us 1 to 10!!!!!!!!
The following selected account balances appeared on the financial statements of Washington Company: Accounts Receivable, January 1 $16,936 Accounts Receivable, December 31 8,878 Accounts Payable, January 1 5,832 Accounts Payable, December 31 8,151 Merchandise Inventory, January 1 6,202 Merchandise Inventory, December 31 14,530 Sales 61,882 Cost of Merchandise Sold 32,077 Washington Company uses the direct method to calculate net cash flow from operating activities. Cash payments for merchandise were
Answer:
the Cash payment to the merchandise is $38,086
Explanation:
The computation of the cash payment for merchandise is shown below:
Cash payment to the merchandise is
= Cost of goods sold + Increase in inventory - Increase in accounts payable
= $32,077 + ($14,530 - $6,202) - ($8,151 - $5,832)
= $32,077 + $8,328 - $2,319
= $38,086
hence, the Cash payment to the merchandise is $38,086
Letter 1: You purchased a coffee table from Jones Department Store, 432 West Main, Small Town, CA 93714. When it was delivered, there was a large scratch on the top. You would like to have it replaced. Your invoice number is 0065386.
what is the question???///.
what is utilitarianism
Explanation:
Utilitarianism is a family of normative ethical theories that prescribe actions that maximize happiness and well-being for all affected individuals.[1][2] Although different varieties of utilitarianism admit different characterizations, the basic idea behind all of them is to in some sense maximize utility, which is often defined in terms of well-being or related concepts. For instance, Jeremy Bentham, the founder of utilitarianism, described utility as "that property in any object, whereby it tends to produce benefit, advantage, pleasure, good, or happiness...[or] to prevent the happening of mischief, pain, evil, or unhappiness to the party whose interest is considered."
Utilitarianism is a version of consequentialism, which states that the consequences of any action are the only standard of right and wrong. Unlike other forms of consequentialism, such as egoism and altruism, utilitarianism considers the interests of all humans equally. Proponents of utilitarianism have disagreed on a number of points, such as whether actions should be chosen based on their likely results (act utilitarianism), or whether agents should conform to rules that maximize utility (rule utilitarianism). There is also disagreement as to whether total (total utilitarianism), average (average utilitarianism) or minimum utility[3] should be maximized.
Though the seeds of the theory can be found in the hedonists Aristippus and Epicurus, who viewed happiness as the only good, and in the work of the medieval Indian philosopher Śāntideva, the tradition of modern utilitarianism began with Jeremy Bentham (1748-1832), and continued with such philosophers as John Stuart Mill, Henry Sidgwick, R. M. Hare, and Peter Singer. The concept has been applied towards social welfare economics, the crisis of global poverty, the ethics of raising animals for food, and the importance of avoiding existential risks to humanity.
Sabv Corporation's break-even-point in sales is $890,000, and its variable expenses are 70% of sales. If the company lost $39,000 last year, sales must have amounted to:
Answer:
Sales must have amounted to $760,000
Explanation:
We need to calculate from the bottom to the top of the Contribution Income Statement
Step 1
Break Even Point (Dollars) = Fixed Cost ÷ Contribution Margin
Where,
Contribution Margin = 100 % - 70%
= 30 %
Therefore,
Step 2
Fixed Costs = Break Even Point (Dollars) × Contribution Margin
= $890,000 × 30 %
= $267,000
Step 3
We know that,
Net Income/ loss = Contribution - Fixed Costs
Therefore
Contribution = Net Income/ loss + Fixed Costs
= - $39,000 + $267,000
= $228,000
Step 4
Finally, we need to calculate the amount in sales
Sales = 100/30 × $228,000
= $760,000
After achieving a result, good managers invest time in reflecting on what went well and what could have gone better. They consider whether they were as effective as they could have been and whether they got the result in the most efficient way possible. Then they apply what they have learned to future projects.
Congratulations! You just graduated with a degree in management. As you reflect on your school experience, you make a list of the reasons you were so efficient with your studies. Which of the following statements relate specifically to your efficiency?
a. Last year, you reviewed the course schedule to ensure you knew when to enroll in certain electives that are offered only once per year.
b. When registration opened for each term, you immediately registered for the classes you needed, especially the ones that fill up quickly.
c. Throughout your time in school, you chose electives that would provide you with a well-rounded education, and not based on how easy you heard the classes were.
d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date.
Answer: d. After each semester, you asked your adviser to review your progress to ensure you remained on track for your anticipated graduation date
Explanation:
Efficiency is measurable and has to do with the ability to achieve a goal or get a result that's desired and avoid wastage of efforts or resources.
With regards to the explanation above, the statement that relate specifically to your efficiency is asking the level adviser to review ones progress in order to show that one is on track.
This shows that the person wants to achieve the goal of graduation and is putting all of his efforts towards that.
evaluate the philosophy behind the company's way of working and analyze how it impacted upon perceptions of organizational justice both when the company was formed and later when redundancies were threatening.
Answer: The system treated everyone fairly and carried them along
Explanation:
Prior to Ed's passing away his phone was to make work as much fun as possible and less stressful. Although it was more of a selfish reason for Ed but it worked out for the interest of the company. This boasted the relationship within the company making everyone happy. Everybody was treated special to the company regardless of how they worked, there was no pillars nor competition. Although Ed was never working from the HRM perspective he still delivered some of the important key roles within the HRM which was fairness and happiness within employees. After his passing away, the pillar system was not sustained.
. What, in your view, were the relative importance of economic interest, ideology, and strategic interest in encouraging American imperialism
Answer:
American imperialism was mostly fueled by its need to expand its economic frontiers, gaining markets for American goods, and acquiring sources of raw materials for its domestic productivity.
Secondly, political ideologies needed the spreading of democratic ideals around the world in order to defeat communism abroad and combat home-grown and imported communism. If this was not done, communist ideology would have overrun the majority of the countries with dare consequences.
These two pursuits cannot be achieved without ensuring that America's strategic interests and influence over other countries are militarily safeguarded.
Explanation:
Economic expansion, political power, the diffusion of ideological beliefs, and the spreading of religious beliefs and practices to other nations are the main driving force behind all forms of imperialism. America narrowed its interests to these three drivers: economic interest, political ideology, and defense strategies.
Fuchsia provided services to 1,600 clients in the month of March and generated $23,500 as revenue. How much is the cost per service? (Round your answer to the nearest cent.)
Answer:
$10.72
Explanation:
Calculation for How much is the cost per service
First step is to calculate the Total costs
Building Rent Expense $5,200
DepreciationExpense—Equipment 1,600
Supplies Expense 8,000
Utilities Expense 2,350
Total costs $17,150
Now let calculate the Cost per service using this formula
Cost per service = Total costs / Services
Let plug in the formula
Cost per service = $17,150 / 1,600
Cost per service = $10.72
Therefore the cost per service is $10.72
Governor Patrick Cote of Vermont is beginning his primary campaign for the presidency and is considering whether or not to accept public funds set aside for primary candidates in the Presidential Election Campaign Fund. Cote is concerned that his primary opponents may forgo revenue from the fund with the hope of raising money beyond its established limits. From which group could Cote solicit funds to maximize donations to his primary campaign, thereby allowing him the option of declining money from the Presidential Election Campaign Fund
Question Completion with Options:
a. Political action committees
b. Professional organizations
c. Corporations
d. Labor unions
Answer:
The group from which Cote could solicit funds to maximize donations to his primary campaign, thereby allowing him the option of declining money from the Presidential Election Campaign Fund is called:
Political action committees
Explanation:
A political action committee is a committee set up primarily to raise funds for the political campaign of a candidate. The committee collects funds from various individuals, better called contributors, and then distributes the funds to candidates who support the same ideals as the contributors. The establishment of a political action committee by supporters of a political aspirant enables the committee to collect funds for distribution to a candidate's political course. The committee is established based on ideology and political interests.
Universal Computer Corporation is evaluating its use of debt and equity capital. Some members of the finance team think the company would be better served by issuing new debt and using the proceeds to buy back shares of its common stock. What type of managerial decision is this
Answer: capital structure
Explanation:
In this case, the type of managerial decisions is referred to as the capital structure.
The capital structure is when a business combines both debt and equity in order to help its growth. finance its overall operations and growth. The debt can include loans, while the equity can be the retained earnings.
Minimizing Inventory. An electronics store sells 100 digital storage devices per year. It costs $18 to store one storage device for one year. To reorder, there is a fixed cost of $36, plus $11 for each storage device. How many times per year should the store order storage devices and in what lot size, in order to minimize inventory costs
Answer:
Expl one year. To reorder, there is a fixed cost of $36, plus $11 for each storage device.anaMinimizing Inventory. An electronics store sells 100 digital storage devices per year. It costs $18 to store one storage device for one year. To reorder, there is a fixed cost of $36,tion:
1. Acquired $25,000 from the issue of common stock. 2. Purchased $2,500 of supplies on account from the Gadget Supply Agency. 3. Performed security services at local sporting events during the year for $8,000 cash. 4. Paid salaries expense of $3,000 for the year. 5. Purchased land, paying $10,000 cash. 6. Paid utility expenses of $2,000 for the year. 7. Paid a cash dividend of $1,500 to the shareholders. 8. Found out from an appraiser that the market value of the land on 12/31 was $12,500.
Answer:
I guess that you need the journal entries:
1. Acquired $25,000 from the issue of common stock.
Dr Cash 25,000
Cr Common stock 25,000
2. Purchased $2,500 of supplies on account from the Gadget Supply Agency.
Dr Supplies 2,500
Cr Accounts payable 2,500
3. Performed security services at local sporting events during the year for $8,000 cash.
Dr Cash 8,000
Cr Service revenue 8,000
4. Paid salaries expense of $3,000 for the year.
Dr Salaries expense 3,000
Cr Cash 3,000
5. Purchased land, paying $10,000 cash.
Dr Land 10,000
Cr Cash 10,000
6. Paid utility expenses of $2,000 for the year.
Dr Utilities expense 2,000
Cr Cash 2,000
7. Paid a cash dividend of $1,500 to the shareholders.
Dr Dividends 1,500
Cr Cash 1,500
8. Found out from an appraiser that the market value of the land on 12/31 was $12,500.
NO JOURNAL ENTRY
Domingo Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 400 units. The costs and percentage completion of these units in beginning inventory were: What are the equivalent units for conversion costs for the month in the first processing department
Answer:
Equivalent units for conversion costs are 6,925 units
Explanation:
Note : I have attached the full question as an image below
Equivalent units are physical units expressed as a percentage of total work completed on them
Equivalent units for conversion costs
Units Completed and Transferred (6,100 × 100%) 6,100
Units in Closing Work in Process (1,100 × 75%) 825
Equivalent units for conversion costs 6,925
Equivalent units for material costs
Units Completed and Transferred (6,100 × 100%) 6,100
Units in Closing Work in Process (1,100 × 85%) 935
Equivalent units for material costs 7,035
4. If a decrease in the price of one product results in an increase in demand for another product, then the product is:
Answer:
Substitute goods
Explanation:
Substitutes goods are products that can be used in place of one another. Consumers will be happy consuming either of the substitute goods. Therefore, substitute goods are similar and offer solutions to similar customer problems. Examples of substitute goods are tea and coffee.
If the price of one substitute good decreases, its demand will rise. Customers will prefer consuming that product over its substitutes due to its lower prices. The demand for other substitute goods will decrease as customers prefer the more affordable options.
