Answer:
In the first instance money serves as Measure of Value, while in the second instance money serves as Medium of Exchange.
Explanation:
The measure of value and medium of exchange are two of the functions of money which are explained as follows:
a) Measure of Value
The function of money as a measure of value permits all goods and services to be attached prices. That is, every commodity is valued in terms of money. Therefore, money gives the opportunity to compare values of goods and services. Measure of value is also referred to as a unit of value.
From the question, the function of money as a measure of value is what permits Seven-11 to quote a super Slurpee as $1.39.
b) Medium of exchange
The function of money as a medium of exchange provides the opportunity use money as an intermediary instrument in order to ensure goods and services purchased, sold or traded between parties at a standard value. This is different from what obtained under the trade by barter in which commodities had to be exchanged for commodities without any standard value.
From the question, the function of money as a medium of exchange allows an amount of $1.39 which is a standard value was exchanged for the super Slurpee.
Answer:
(1) Unit of Account
(2) Medium of Exchange
Explanation:
(1) A unit of account is the measure in which prices are quoted. Thus, when the price of the super Slurpee is quoted in dollars, money functions as a unit of account.
(2) A medium of exchange is what people trade for goods and services. Thus, when you buy the super Slurpee, you are offering the $1.39 in exchange for the super Slurpee. Money here serves as a medium of exchange.
Answer: Option (e) is correct.
Explanation:
Given that,
Company's revenue = $530,000
Profit before taxes = $98,000
Product costs = $390,000
Company's gross margin = Company's revenue - Product costs
= $530,000 - $390,000
= $140,000
Therefore, The company's gross margin totals $140,000.
b. countries.
c. demographics.
d. counties.
e. countercultures.
Answer:
a, b
regions and countries.
Explanation:
Often termed global marketing strategy, involves bridging the cultural gap by producing advertising that appeals to countries from several different regions in the world.
Disney is a good example of a company that uses a global marketing strategy, another example is Coca-cola because of irrespective of the regions they produce products that appeal to their consumers.
Answer:
12.8%
Explanation:
Data provided in the question:
Debt = 60% = 0.60
Equity = 40% = 0.40
Cost of debt, kd = 10% = 0.10
cost of equity, ke = 17% = 0.17
Now,
firm weight average cost of capital
= ( ke × weight of equity ) + ( kd × weight of debt )
on substituting the respective values, we get
= ( 0.17 × 0.40 ) + ( 0.10 × 0.60 )
= 0.068 + 0.06
= 0.128
or
= 0.128 × 100%
= 12.8%
Answer:
The correct answer is letter "B": Cash inflow equal to the cash received and a cash outflow equal to the cash paid.
Explanation:
The cash inflow equals to the amount of money received for the old equipment sold and cash outflow equivalent to the money paid for the brand new equipment. The note payable is not a cash outflow, and the cash outflow received should not be decreased.
Answer:
a. advocate redistributing income from David to Rita.
Explanation:
Since David is getting a lower utility from his last dollar obtained (6) than Rita (10), the benefit that David gains from this last dollar is less than what Rita would gain if she was the one receiving this dollar. Therefore, those who favor an equal distribution of income would advocate redistributing income from David to Rita, since total utility would increase with this redistribution.
Delivery and receipt of merchandise $76 per delivery
Shelf-stocking $19 per hour
Customer support and assistance $0.15 per item sold
The revenues, cost of goods sold, store support costs, activities that account for the store support costs, and activity-area usage of the three product lines are as follows:
Baked Goods Milk and Fruit Juice Frozen Products
Financial data
Revenues $60,000 $66,500 $50,500
Cost of goods sold $41,000 $51,000 $32,000
Store support $12,300 $15,300 $9,600
Activity-area usage (cost-allocation base)
Ordering (purchase orders) 44 24 14
Delivery (deliveries) 120 60 36
Shelf-stocking (hours) 170 150 20
Customer support (items sold) 15,400 20,200 7,960
Under its simple costing system, FS allocated support costs to products at the rate of 30% of the cost of goods sold.
Required:
1. Use the simple costing system to prepare a product-line profitability report for FS.
2. Use the ABC system to prepare a product-line profitability report for FS.
3. What new insights does the ABC system in requirement 2 provide to FS managers?
Answer:(1) Baked Goods profit $6,700, Milk and Fruit juice profit $200, Frozen Products profit $8,900 (2) Baked Goods profit $160, Milk and Fruit juice profit $2,870, Frozen Products Profit $12,860. (3) it provide insight to FS managers that Frozen Products is the most profitable among the three product lines.
Explanation:
(1) Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less : Cost of good sold 41,000. 51,000. 32,000
------------- -------------- ---------------
Gross Margin. 19,000. 15,500. 18,500
Less: Store Support. 12,300. 15,300. 9,600
----------- ------------ -------------
Profit. 6,700. 200. 8,900
------------- --------------- ----------------'
(2)
Baked Goods. Milk and Fruit juice. Frozen Products
$ $ $
Revenue. 60,000. 66,500. 50,500
Less Cost of good sold 41,000. 51,000. 32,000
------------- ---------------- -----------
Contribution. 19,000. 15,500. 18,500
Less Overhead
Ordering cost. 4,180. 2,280. 1,,330
Delivery&Receipt. 9,120. 4,560. 2,736
Shelf Stocking. 3,230. 2,850. 380
Customer Support & Assistant 2,310. 3,030. 1,194
------------ -------------- ------------
Profit. 160. 2,870. 12,860
------------------ ----------------- ---------------
(3) The new insight to FS managers is that Frozen Products is the most profitable among the three products lines
Workings
Ordering cost ($95 × 44) = 4,180 ($95 × 24) = 2,280 ($95 × 14) = 1,330
Delivery &Receipt ($76 × 120) = 9,120 ($76 × 60) = 4,560 ($76 × 36) = 2,736
Shelf Stocking ($19 × 170) = 3,230 ($19 × 150) = 2,850 ( $19 × 20) = 380
Customer Support &Assistant ($0.15 × 15,400) = 2,310 ($0.15 × 20,200) = 3,030 ($0.15 × 7,960)= 1,194
To prepare a product-line profitability report for FS, first, use the simple costing system by allocating support costs to products at a rate of 30% of the cost of goods sold. Second, use the ABC system by calculating the total activity cost for each product line and allocating it based on activity-area usage. The ABC system provides more insights into cost drivers and helps in analyzing profitability.
1. Simple costing system:
Under the simple costing system, FS allocates support costs to products at a rate of 30% of the cost of goods sold. To prepare a product-line profitability report, we need to calculate the support costs allocated to each product line by multiplying their respective cost of goods sold by 30%. Then, subtract the allocated support costs from the revenues to determine the profitability.
2. ABC costing system:
Under the ABC costing system, we need to calculate the total activity cost for each product line by multiplying the activity cost rate with the respective activity-area usage. Then, allocate the total activity costs to each product line based on their activity-area usage. Finally, subtract the allocated support costs from the revenues to determine the profitability.
3. New insights from ABC system:
The ABC system provides a more accurate and detailed view of the costs associated with each product line. It allows FS managers to identify the activities that contribute the most to the total support costs and analyze the profitability of each product line based on these cost drivers. This insight helps in making informed decisions regarding product line management and pricing strategies.
#SPJ3