Consider a firm's short-run cost curves. If average total cost is increasing as output rises, thenSelect one: a. total fixed costs must be increasing b. average variable cost must be increasing, c. marginal cost must be below average total cost. d. average fixed costs must be increasing. e, average total cost is no longer equal to the sum of average variable cost and average fixed cost.
Option (a) total fixed costs must be increasing if the average total cost is increasing as output rises.
What happens to the average fixed cost when production increases in the short term?
In the short term, as a company's output increases, its average fixed cost decreases. Fixed costs remain the same regardless of the number of products produced. As performance improves, the fixed cost contribution per unit decreases.
On the short-term curve, much of the initial downslope is due to lower average fixed costs. Increasing the variable input return at low output levels also plays a role, but the slope is due to the decreasing limit variable input return.
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Insider trading is seen as a threat to the functionality of the financial markets. Write a short paragraph describing why this is so.
insiders can cheat the market.
They can do things on the inside to make a stock go up or down. this can be an advantage to buying in low and selling high. Elon Musk did something similar, (put this in your answer for a kick) as he used his social influence to lower his stock, by saying its "overpriced" making people sell it. when the stock fell, more investors used the buying in low strategy, and he split the stock to allow smaller investors to buy into the stock, giving him 8 BILLION dollars in one market day. (I LOVE THE STOCK MARKET, IF YOU WANT TO LEARN POST A COMMENT AND I WILL TEACH YOU A LOT!!)
Insider trading is a threat to financial markets because it disrupts the fairness and transparency necessary in these markets. It involves using confidential info to make advantageous trades, giving some an unfair advantage and undermining trust in the market.
Insider trading is indeed considered a threat to the functionality of financial markets. This is primarily due to the nature of insider trading, where confidential, non-public information about a company is used to make advantageous trades. This information imbalance disrupts the fairness and transparency that the financial markets rely on to operate efficiently. For instance, if a company's internal member knows something crucial that could significantly impact the company's stock price and trades based on this information before it is publicly released, then they have an unfair advantage over other market participants. This can lead to a lack of confidence and trust in the market, which is detrimental to the smooth functioning of financial markets.
The difference between the sole proprietorship and limited liability company is that, in a sole proprietorship, the owner can start the company in his own name and under no legal liability. The owner is not treated as a separate entity than the business.
In a restricted obligation organization, the business is dealt with distinctively and a different element than the individual who maintains the business. Any financial issue or liability is bourne by the sole proprietor himself whereas in LLC it becomes the companies liability and that too up to the amount they can afford.
Laser World reports net income of $600,000. Depreciation expense is $45,000, accounts receivable increases $12,000, and accounts payable decreases $25,000. Calculate net cash flows from operating activities using the indirect method
For the indirect method, the below steps are applicable.
Net income $600,000 + Add non cash expense (depreciation) $45,000
We will need to account for changes in assets; which is add sources of cash and subtract use of cash. Therefore, net cash flow from operating activities is ;
= $645,000 + (-$25,000) + (-$12,000)
= $645,000 - $25,000 - $12,000
Note: The above negative signs indicates cash usage which reduces accounts payable and increases accounts receivable.
On January 1, 2018, Westside Sales issued $ 20 comma 000 in bonds for $ 21 comma 800. These are eightminusyear bonds with a stated interest rate of 10% that pay semiannual interest. Westside Sales uses the straightminusline method to amortize the bond premium. After the first interest payment on June 30, 2018, what is the bond carrying amount? (Round your intermediate answers to the nearest dollar.)
Premium on bonds payable = $21,800 - $20,000= $1,800
Interest payments = 8 years X 2 semiannual interest payments per year = 16 payments
Premium ammortisation = $1,800 / 16 = $112.5
Carrying value of the bond = $21,800 - $112.5 = $21,687.5
A widely used activity base for developing factory overhead rates in highly automated settings is a.machine hours b.direct materials c.direct labor hours d.direct labor dollars
a. machine hours
Machine hours -
It is the measurement adapted to apply factory overhead to the manufactured goods , is referred to as machine hours .
In the field of machine environment ,
the time consumed for processing the machine is the maximum .
In case there is lesser machines in the company , the labor hours would be more .
Hence , from the given information of the question,