Businesses that sell services rather than tangible items don't have a line for _____ on their statements.

Answers

Answer 1

Answer:

cost of goods sold (COGS)

Explanation:

Generally service businesses do not include cost of goods sold in their income statement. Cost of goods sold (COGS) is calculated when a business sells goods (= ending inventory + purchases - beginning inventory), but when you only sell services, what COGS can you have?


Related Questions

he difference between an L3C (low profit limited liability company) and other types of businesses is that:

Answers

Answer: L3Cs explicitly take on a social mission as well as profit-seeking

Explanation:

The options are:

a. L3Cs do not pursue profit, but instead seek social goals.

b. L3Cs cannot accept government funding of any kind.

c. L3Cs explicitly take on a social mission as well as profit-seeking.

d. L3Cs are chartered by the government and all profits are retained by the government.

An L3C is a limited liability company (LLC), which has both attributes of profit and non profit. It is usually set up in such a way that private investiors can be attracted and also provide social objectives.

The owners are not responsible for the debt of the organization and they usually participate in management. Therefore, the answer to the question is that L3Cs explicitly take on a social mission as well as profit-seeking

Salespeople who assist in design and specification processes, installation of equipment, and training of a customer's employees are called

Answers

Answer:

technical support salespeople.

Explanation:

Salespeople can be defined as a group of individuals or employees who are saddled with the responsibility of taking orders from customers, as well as sales of finished goods and services to consumers or end users.

Salespeople who assist in design and specification processes, installation of equipment, and training of a customer's employees are called technical support salespeople.

If actions of the Nepalese government caused a shortage of domestic currency, then the government fixed exchange rate would be

Answers

Answer:

D) below the market equilibrium and rupee per dollars will tend to rise.

Explanation:

In the case when the nepalese government taken an action that result in shortage of the domestic currency so the government exchange rate i.e. fixed would be below the market equilibrium and the dollars per rupee would increase as if there is a shortage so the government fixed the currency i.e. below the equilibrium due to which the currency would become stronger

Hence, the correct option is d.

If the Bank of Uchenna is not meeting its reserve requirement, what action can it take to meet the reserve requirement without calling in loans or selling property

Answers

Answer:

In this situation, the Bank of Uchenna has two options:

It can borrow extra funds to meet the reserve requirements in the interbank market. These funds would be borrowed at the federal funds rate if the bank is the U.S., or at the specific interbank rate applying to the area where the bank is located.

Or it can borrow those extra funds from the central monetary authority, in other words, the central bank (the fed in the case of the U.S.), since one of the main functions of a central bank is acting as lender of last result for financial institutions when these institutions are in need.

In this situation, Uchenna Bank has two options that can be done by the bank  without calling in loans or selling property :

Additional funds can be borrowed to meet the reserve    requirement requirements of the interbank market.

These funds are borrowed at the federal funds rate if the bank is based in the United States, or at a specific interbank rate applicable to the area in which the bank is located.

They can borrow these additional funds from  Central bank.

The central bank's main functions is to act as a lender to the central bank, you can borrow these additional funds from the central bank, the central bank (FRB in the United States).

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Explain why it is important to set realistically attainable financial goals. Select one of your personal financial goals and develop a brief financial plan for achieving it.

Answers

Answer:

Explanation:

The main importance of setting realistically attainable financial goals is to remain optimistic and stay on track. If your goals are too ambitious and not very realistic then as time passes and you do not see much progress towards attaining that financial goal you will begin feeling depressed and begin losing faith that you will ever attain that goal. This leads you to give up on your plans and ultimately wasting the money on unnessesary purchases. My financial plan is to first save up an emergency fund to be able to maintain myself an entire year. Once I have this fund I will begin investing 10%-20% of my monthly income every month. 50% of that into a dividend stock portfolio and 50% into a cryptocurrency portfolio. Cashing out the crypto portfolio every time it doubles.

According to the eTextbook, ______ is the lot size (Q) that will minimize total annual inventory cost.

Answers

Answer:

EOQ (Economic Order Quantity).

Explanation:

As the acronym goes EOQ, it is economic order quantity which is seen to reduce or hold the amount of raw material been ordered. This is seen by experts as a formula in production that intels the most optimum and economic purchase pattern in purchase of goods or materials to be used in production. Therefore this will directly be seen to have a big effect in the total size if an order; thereby causing a reduction in its annual inventory cost.

On January 1, 2021, Reston Company purchased 25% of Ace Corporation's common stock; no goodwill resulted from the purchase. Reston appropriately carries this investment at equity and the balance in Reston's investment account was $1,170,000 at December 31, 2021. Ace reported net income of $700,000 for the year ended December 31, 2021, and paid cash dividends on common stock totaling $280,000 during 2021. How much did Reston pay for its 25% interest in Ace

Answers

Answer:

initial investment in Ace Corporation = $1,065,000

Explanation:

initial investment in Ace Corporation = December 31st balance - (25% x net income reported) + (25% x distributed dividends)

initial investment in Ace Corporation = $1,170,000 - (25% x $700,000) + (25% x $280,000) = $1,170,000 - $175,000 + $70,000 = $1,065,000

When using the equity, reported net income increases the investment account while dividends decrease it.

Acme Global has five factories. Three in the United States, one in Germany, and one in India. Each factory is a separate independent business facility owned by Acme Global. It appears Acme Global is in the ________ stage of corporate globalization.

Answers

Answer: multinational

Explanation:

From the information given in the question, we can see that Acme Global is in the multinational stage of corporate globalization.

A multinational corporation is typically a corporation that is large and is usually incorporated in a particular country but has branches and sells its products in other countries. The parent company controls its activities worldwide.

Acme Global is in the multinational or international stage of corporate globalization.

Acme Global is in the international stage of business globalization, based on the facts provided in the inquiry.

A multinational firm is usually a major corporation that is incorporated in one nation but has subsidiaries and markets its products in other nations.

The parent company is in charge of all of the company's operations around the world.  

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If disposable income increases from $912 billion to $1092 billion and Savings increased by $180, then the consumption will increase by

Answers

Answer: $0 billion

Explanation:

Money spent for consumption is the difference between Disposable income and Savings.

Disposable income increase:

= 1,092 - 912

= $180 billion

Savings increased by $180 billion which is equal to the change in Disposable income.

Change in consumption = Change in disposable income - change in savings

= 180 - 180

= $0 billion

What is the best way to experience what it's like to work in a field that interests you?
O Watch a movie that features a main character working in that field.
O Get an internship in that field
O Look up information about the field on the Bureau of Labor Statistics Web site.
O Gather ideas from your friends about the field.

Answers

Answer:

O Get an internship in that field.

Explanation:

Depending on one's interest, there are numerous ways by which one can get an experience of such a field. One of the most exciting and first-hand means of getting to experience is to be an intern in that field.

An internship is the temporary employment of a person by a company that allows the person to learn and be familiar with the workings of the company or field. In such a manner, the intern is made a part-time employee where he/ she learns, be familiar, and also get more knowledge about the workings of that place.

Thus, the best way to experience working in a field that one likes is to get an internship in that field.

Describe how the ethical codes of your company support or inhibit how these individual characteristics impact employee morale and organizational performance.

Answers

Explanation:

Codes of ethics are essential in every organization to be a parameter of employees' moral conduct. Through the code of ethics, the organization induces its people to take actions and behaviors that are positive for the organizational environment and the company's culture, as well as encouraging employees to act in accordance with the company's identity and moral values ​​and also from society.

In a globalized environment, work environments have become multicultural, which should be understood in the code of ethics, which when effective and aligned with organizational objectives will positively impact on motivation and organizational performance, since the organization will have the image and the positioning of a company that preserves individual values, morals and positive development practices in society.

Jay owns 100% of Kaye Company. Jay (an individual) is in the 37% tax bracket. Assume that Kaye Company is a corporation and distributes $50,000 cash to Jay as a dividend. How much tax must Jay pay on this $50,000 dividend

Answers

Answer:

$10,000 as qualified dividends

Explanation:

As this is in the form of dividends we assume the business is a corporation therefore their dividends are taxed as well.

As Jay is the sole owner of Kaye Company we have to assume their dividends are qualified as were held during the entire 121-days period

Therefore are subject to his capital gains rate rather than his rate of 37%

According to the IRS table for the year 2020:

Income Tax Bracket  Income Tax Rate  Capital Gains Rate

$0 – $9,875  10%  0%

$9,876 – $40,000  12%  0%

$40,001 – $40,125  12%  15%

$40,126 – $85,525  22%  15%

....

$518,401+  37%  20%

Thus the $50,000 qualified dividends will be taxes at 20%

50,000 x 20% = 10,000

subsidiary wants to raise $US 1 million by issuing a bond denominated in Pakistani rupees (PKR). The current exchange rate of the rupee is $.02. How many PKR does the MNC need to obtain the $US 1 million needed

Answers

Answer:

50,000,000  PKR

Explanation:

The amount needed in this case is the Pakistani rupees (PKR) equivalent of $US 1 million using the current exchange rate of $.02 to 1 Pakistani rupees (PKR) as computed thus:

Amount needed in Pakistani rupees (PKR)=funds required in USD/exchange rate

funds required in USD=$US 1 million

exchange rate= $.02/1 Pakistani rupees (PKR)

Amount needed in Pakistani rupees (PKR)=$1,000,000/ $.02

Amount needed in Pakistani rupees (PKR)=50,000,000  PKR

Engineering change orders, maintenance of equipment used in manufacturing, and product design costs are examples of: Unit costs. Unit, batch, and customer-sustaining costs, respectively. Facility-level costs. Batch costs. Product-level costs.

Answers

Answer:

Product-level costs.

Explanation:

The equipment maintenance that used in the manufacturing, the design of the product, and the engineering change in orders represent the example of product level cost as they are relevant with the product or directly related with the product

So as per the given situation the last option is right

Hence, the same would be relevant

Consider the following statements, and indicate which variable is an independent variable and which variable is a dependent variable; moreover, determine whether there is a positive or a negative relationship between two variables. a. More educated employees typically have higher income than less educated employees.

Answers

Answer and Explanation:

A. When the employees are more educated and have the higher income as compared with the less educated employees so here education would be indepedent variable and the income is dependent variable. Also the relationship between these two variables i.e. education and income is positive

Therefore the same is relevant

Which of the following circumstances lends itself to the direct organization approach? A. Telling your client that you are running behind schedule B. Giving your client the statistics showing the workload on your team and asking for a later deadline C. Informing your client that you have technical issues that are hampering the project D. Sending your client a business referral E. Informing the client about the attrition resulting in slow work

Answers

Answer:

D. Sending your client a business referral

Explanation:

The alternative that corresponds to the circumstance that lends itself to the direct approach of the organization is the sending of a business reference to the client.

The direct approach is used when the main message of a document is described before the argument, that is, before explaining the arguments arising from the idea, the company first presents the central idea, is usually present at the beginning of a document, and immediately after there is the text that provides further clarification of the idea. This strategy is used by companies when there is evidence that the message contained in the document will cause positive or neutral reactions.

5. Briefly explain why when the marginal cost of an activity increases as one does more of it and why the marginal benefit of an activity decreases the more one engages in it.

Answers

Answer:

The law of decreasing marginal utility states that the actual utility obtained from carrying out some specific activity decreases as you perform that activity more often. E.g. you are very thirsty and decide to drink a glass of Coke. The first glass will yield a very high number of utils. If you are still thirsty, you might drink a second glass, but this time the second glass will yield a lower amount of utils. If you keep drinking more Coke, eventually you will be full and will not even enjoy drinking it.

The opposite happens with the marginal cost of carrying out an activity. For example, you like to bike outdoors. Biking outdoors one day per week will cost you X amount (including actual costs of biking plus opportunity costs). But if you decide to do it 2 times per week, your opportunity costs will increase. If you decide to do it 3 or more times per week, you better be good enough to become a professional or have a very tolerant boss. Opportunity costs of biking outdoors more days per week will keep increasing.

A firm sets up a factory to manufacture TV sets, and this model is expected to be in the market for 10 years and its machinery will be used for this period. Every year it manufactures 12000 TV sets, the component costs are $60 per set; hourly labor costs are $10 a set; CEO salary and other overheads are $200000 a year. The firm also buys manufacturing machinery for $400000. Considering its production of 12000 TV sets every year, what should the price of the TV set be, if the firm makes no profit or loss every year.

Answers

Answer:

$90

Explanation:

No of TV set in 10 years = 12000*10 years = 120,000 TV sets

Total component cost = 120,000*$60 = $7,200,000

Total labor cost = 120,000 * $10 = $1,200,000

Total cost of CEO Salary & Overheads = $200,000 * 10 = $2,000,000

Cost of machinery = $400,000

Total cost = $7,200,000 + $1,200,000 + $2,000,000 + $400,000

Total cost = $108,000,000

Cost per unit = $108,000,000/120,000

Cost per unit = $90

So, for a no profit-no loss scenario, the selling price should be $90

Hocus Pocus Smoked Ribs has only one location and wants to exploit its competitive advantage, a very popular recipe for smoked meats. This means that it wants to: a.form multiple business-level strategies. b.create a single business-level strategy. c.implement a cooperative strategy. d.establish a global strategy.

Answers

Answer:

b.create a single business-level strategy

Explanation:

Analyzing the information above, it is correct to say that the company wants to create a unique business-level strategy.

This strategy occurs when the company has a competitive advantage and wants to exploit it, as in the case of Hocus Pocus Smoked Ribs, which has a very popular recipe for smoked meat.

So the company seeks to improve its production, marketing and development strategies to focus on its central differential, which is its meat recipe.

This is a strategy that can be advantageous because it strengthens the product delivered by the company, but it can also be risky because it presents inherent risks, such as the price of ingredients going up or missing, which can harm the entire competitive advantage of the business.

Product recall is an example of: Select one: a. prevention costs b. appraisal costs c. internal failure costs d. external failure costs

Answers

Answer:

External failure costs

Explanation:

A recall of a process is determined as a recommendation for a good or service to be returned, exchanged or replaced after a retailer or consumption watch group uncovers deficiencies that could impede performance, cause frustration or cause producers legal problems.

How is efficiency related to the number of firms in an industry characterized by strong economies of scale

Answers

Answer: C. In industries with a strong economies of scale, efficiency tend to increase as the number of firms decrease. As each firm increases its output, it's cost per unit fall. This means that fewer firms each producing higher output leads to greater efficiency than more firms each producing lower output.

Explanation:

Economies of scale refers to the cost savings made as a result of more production occurring. In other words, efficiency leads to costs decreasing as production increases.

In an industry with strong economies of scale therefore, efficiency will increase as the number of firms decreases because this will allow the remaining firms to increase their production and enjoy economies of scale.

Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.

Answers

Answer:

Floating exchange rate

Explanation:

The floating exchange rate is the rate in which the price of the currency would be determined by the forex market that depend on the supply and the demand as compared with the other types of currencies.

So as per the given situation, the markets of the currency that operates under a system is known as the floating exchange rate

So the same is relevant

What is the incremental cost incurred if the company increases production and sales from 11,000 to 11,001 units

Answers

Answer:

Marginal Cost

Explanation:

The cost for increasing the output one unit is know as Marginal Cost

It will be the sum of all variable cost related to that sale from cost of goods sold (manufacturing department) to sales commisions (sales department) to collection cost (adminsitrative deparment) It considers the company as a whole not just the manufacturing deparment.

The difference between the Marginal cost and the sales price is now as contribution margin and both are used in Managerial accounting and economics.

Marco Manager supervises three employees at a bank. Several times over the last three months, money has been missing from a specific employee’s till at the end of the shift. Marco Manager has worked with this employee for five years and considers this employee a friend. What ethical dilemmas does this present for Marco Manager?

Answers

Answer:

The ethical dilemma that Marco Manager is facing having to choose between trying to keep an existing friendship (at least he believes that they are friends) or doing the right thing as a manager, which would involve investigating why the money is missing and most certainly firing the employee.

Many of the proponents of price ceilings argue that government-mandated maximum prices simply reduce producers' profits and do not affect the quantity supplied of a good on the market. What must the supply curve look like if the price ceiling does not affect the quantity supplied

Answers

Answer:

the supply curve must be vertical

Explanation:

A horizontal supply curve is perfectly inelastic. This means that the price of a good or service will not affect the quantity supplied. In other words, the quantity supplied is not affected by an increase or a decrease of the good's price. This type of situation is basically theoretical, or may exist for a very short period of time where the availability of a good is very low. But in the real world, it cannot hold for significant periods of time.

Oriole Corporation acquired two inventory items at a lump-sum cost of $123000. The acquisition included 3090 units of product LF, and 6180 units of product 1B. LF normally sells for $30 per unit, and 1B for $10 per unit. If Oriole sells 1030 units of LF, what amount of gross profit should it recognize?

Answers

Answer:

$6,304

Explanation:

Calculation for what amount of gross profit should it recognize

First step is to calculate the total value sales

Total value sales

3090 units* $30 per=92,700

6180 units *$10 per unit=61,800

Total value sales=154,500

Second step is to calculate the cost per unit

Cost per unit=(92,700/154,500)*$123000/3090

Cost per unit=0.6*123,000/3090

Cost per unit=73,800/3090

Cost per unit=23.88

Now let calculate gross profit using this formula

Gross profit=Sales -Cost

Let plug in the formula

Gross profit=1,030*(30-23.88)

Gross profit=1,030*6.12

Gross profit=$6,304

Therefore the amount of gross profit that should it recognize is $6,304

Helen owns 10.0% of the stock of the Median Corporation. If Median makes a dividend payment of $29 million paid proportionally to its shareholders, how much of this amount would Helen receive, disregarding tax

Answers

Answer:

$2,900,000

Explanation:

Calculation for how much of this amount would Helen receive, disregarding tax

Using this formula

Amount to receive=Stock percentage*Dividend

Let plug in the formula

Amount to receive=0.10 × $29,000,000

Amount to receive=$2,900,000

Therefore how much of this amount would Helen receive, disregarding tax is $2,900,000

g In the current business environment, companies cannot survive without a long-term strategy. What exactly should an effective strategy include

Answers

Explanation:

The organizational strategy to be effective, must understand the organizational structure, that is, it must be aligned with the company's interests, aligned with its values and with the set of policies, procedures and business approaches that will result in long-term success.

It is essential that the strategy understands the organizational systems as a whole, and uses its resources effectively so that the objectives and goals are achieved.

"Based on historical figures, how much would you LOSE by putting your money in a savings account compared to investing in the stock market? "

Answers

Answer:

4.5% annual interest.

Explanation:

Assuming that we are talking about a specific Savings Account then we can say that the average APY on a savings account such as HSBC savings is 2.5% per year. On the other hand, the stock market has an average APY of 7% annually. Therefore, in order to find how much you would lose by putting your money in a savings account, we would need to subtract the savings account APY from the stock market APY.

7% - 2.5% = 4.5%

We can see that what you would lose in opportunity cost is 4.5% annual interest.

Jubilee, Inc., owns 35 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory costing $60,000 and then sells it to JPW for $75,000. At the end of the year, JPW still holds only $30,000 of merchandise, What amount of gross profit must Jubilee defer in reporting this investment using the equity method

Answers

Answer:

The amount of gross profit which Jubilee must defer in reporting this investment is equal to $2,100.

Explanation:

This can be calculated as follows:

Gross profit on sale = Sales - Cost of sales = $75,000 - $60,000 = $15,000

Gross profit margin = Gross profit on sale / Sales = $15,000 / $75,000 = 0.20, or 20%

Gross margin on ending inventory = Ending inventory * Gross profit margin = $30,000 * 20% = $6,000

Share of gross profit of Jubilee, Inc. in ending inventory = Gross margin on ending inventory * Share of Jubilee, Inc. in JPW Company = $6,000 * 35% = $2,100

Therefore, the amount of gross profit which Jubilee must defer in reporting this investment is equal to its share of gross profit in ending inventory which is $2,100.

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