Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000 Selling and administrative expenses, $119,000 Sales returns and allowances, $39,000 Gross profit, $499,000 Accounts receivable, $195,000 Sales discounts, $23,000 Allowance for doubtful accounts credit balance, $2,100 Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. What is the balance in the allowance for doubtful accounts after bad debt expense is recorded?

Answers

Answer 1

If Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000. Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. The balance in the allowance for doubtful accounts after bad debt expense is recorded will be: $11,280

First step is to determine the estimated bad debt expense

Bad debts expense=($459,000×2%)

Bad debt expense=$9,180

Now let determine the balance in the allowance for doubtful accounts after bad debt expense is recorded

Balance in allowance for doubtful accounts=$9,180+$2,100

Balance in allowance for doubtful accounts=$11,280

Inconclusion if Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $159,000 Credit sales, $459,000. Flyer estimates bad debt expense assuming that 2% of credit sales have historically been uncollectible. The balance in the allowance for doubtful accounts after bad debt expense is recorded will be: $11,280

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Related Questions

Can anyone please write a summery of everything that happened in the Great depression?

Answers

The price of everything in the stock market lost its value, everyone went to the bank to withdraw their money but there wasn’t enough money in the bank so people lost all their savings, and after president hoovers term ended president roosevelt became president to help the banks get back and order and helped americans trust the banks again to store their money in again. (pls mark brainliest)

A small ice cream business earns $26538 profit during the two months of July and August. This represents 35% of the annual profit. Find the annual profit. Round to the nearest whole number.

Answers

Let the annual profit be x.

profit earned in July and August is 35% of the annual profit

=> $26538 = 35% of x

=> $26538 = (35/100) × x

=> $26538 × (100/35) = x

=> $2653800/35 = x

=> $530760/7 = x

So, the profit is $530760/7.

The annual profit is $75,823.

Given that,

Two months profit is $26,538.This two month profit represents 35% of annual profit.We need to find annual profit.

According to the scenario, computation of the given data are as follows,

Let annual profit be X.

So, X \(\times\) 35% = 26,538

X = 26,538 \(\div\) 0.35

X = 75,822.86 or 75,823

Hence annual profit = $75,823.

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Assume that a tire company sells four tires to an automobile company for $400, another company sells a compact disc player for $500, and the automobile company puts all of these items in or on a car that it sells for $20,000. In this case, the amount from these transactions that should be counted in GDP is:

Answers

Answer:

$20,000

Explanation:

Gross domestic product is the sum of final goods and services produced in an economy within a given period which is usually a year.

GDP calculated using the expenditure approach = Consumption spending + Investment spending by businesses + Government Spending + Net Export

Only final goods are included in the calculation of GDP.

The tires and compact are intermediate goods and would not be included in GDP. If they are included it would be regarded as double counting

Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise tax on the welfare of her constituents. You explained to the Senator that one way of measuring the impact on her constituents is to determine how the tax change affects the level of consumer surplus enjoyed by the constituents. Based on your arguments, you are given the go-ahead to conduct a formal analysis, and obtain the following estimates of demand and supply:
Qd=500-5P
Qs-2P-60
(a) What are the equilibrium quantity and equilibrium price? Graph your solution.
(b) If a $2 excise tax is levied on this good, what will happen to the equilibrium price and quantity? Show the changes in your graph from part (a).
(c) How much tax revenue does the government earn with the $2 tax?

Answers

Answer:

(a) P = 80 and Q= 100

(b) P = 80.57 and Q= 97.15

(c) Tax revenue = 194.3

Explanation:

Qd= 500 - 5P

Qs = 2P - 60

(a)

In equilibrium

\(Qd = Qs \\500 - 5P = 2P - 60 \\7P = 560 \\P = 80 \\\)

Putting this value of P back into the Qd or Qs equation

\(Qd = 500 - 5p\\Q = 500 - 5 (80) \\Q = 500 - 400 \\Q = 100\)

Thus, equilibrium price is 80 and equilibrium quantity is 100

(b)

When a tax is imposed the supply curve shifts up to the left by the amount of the tax. The new supply curve is given by

\(Qs = 2(P-2) - 60 \\Qs = 2p - 4 - 60 \\Qs = 2P - 64\)

The new equilibrium is

\(Qd = Qs \\500 - 5P = 2P - 64 \\7P = 564\\P = 80.57 \\\)

Substitute it into Qs or Qd we get

\(Q = 500 - 5 (80.57 ) \\Q = 97.15\)

(c)

\(Tax revenue = Tax rate * Quantity \\ = 2 * 97.15\\ = 194.3\)

Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise
Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise

a. At equilibrium the quantity demanded is equal to the quantity that was supplied.

Qd = Qs

500 - 5p = 2p - 60

We collect like terms from here

500+60 = 2p+5p

560 = 7p

p = 560/7

p = 80 dollars.

Therefore the equilibrium price is 80 dollars.

The equilibrium quantity

Qd = 500 - 5p

= 500-5*80

= 500-400

= 100

The equilibrium quantity is 100

b. Qs = 2p+60

2p = Qs + 60

divide through by 2

p = 0.5Qs + 30

P =  0.5Qs + 30 + t

where we have tax = t = 2

=  0.5Qs + 30 + 2

= 0.5Qs + 32

p - 32 = 0.5Qs

divide through by 0.5

Qs = 2p - 64

The demand function is still the same at Qd = 500 - 5P.

At equilibrium: Qd = Qs

2P- 64 = 500-5P

collect like terms

7P = 500+64

7P = 564

divide through by 7

P = 564/7

P = $80.57

When we put this in the demand function

Q = 500-5P

Q = 500-5*80.57

Q = 97.14

This is the equilibrium quantity

500-5*80.57

= 400-402.85

= 97.15 dollars

c. the tax revenue = 2x97.15

= 194.3 dollars

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Suppose you are an aide to a U.S. Senator who is concerned about the impact of a recently proposed excise

Why is ethics important in business give an example of how an unethical practice can affect a business

Answers

Answer:

being ethical ensures a trustworthy reputation in business, and will make sure your less likely to be sued for malpractice or involved in a major scandal. for an example, probably just make a unethical financial situation or involving social or environmental ethics

Discuss the challenge created for financial accountants by the presence of uncertainty.

Answers

Uncertainty creates challenges for financial accountants in accurately measuring, reporting, and disclosing financial information.

The presence of uncertainty poses significant challenges for financial accountants. Uncertainty refers to the lack of predictability or reliability in future events or outcomes, which makes it difficult to accurately measure and report financial information. Here are some key challenges created by uncertainty:

Measurement and valuation: Uncertainty makes it challenging to determine the appropriate measurement and valuation of assets, liabilities, revenues, and expenses.

Financial accountants must make estimates and judgments based on available information, assumptions, and professional judgment. However, the accuracy of these estimates may be compromised by the inherent uncertainty.

Financial statement presentation: Uncertainty affects the presentation of financial statements. Accountants must disclose the nature and extent of significant uncertainties that could impact the company's financial position and performance. However, determining which uncertainties are material and require disclosure can be subjective and complex.

Risk assessment: Uncertainty introduces risk into financial reporting. Accountants need to assess and manage risks associated with uncertain events, such as changes in market conditions, legal disputes, or environmental factors. They must consider the potential impact of these risks on financial statements and disclose them appropriately.

Forecasting and decision-making: Uncertainty makes forecasting and decision-making challenging for financial accountants. They need to analyze financial data and projections while considering the potential impacts of uncertain factors.

This requires them to use sophisticated models, scenario analysis, and sensitivity analysis to assess the range of possible outcomes.

Regulatory compliance: Financial accountants must comply with accounting standards and regulatory requirements. Uncertainty adds complexity to compliance efforts, as new and evolving regulations may require additional disclosures or adjustments to financial statements to reflect uncertain events or future obligations.

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A company purchased equipment for $ 2,000 cash. the seller stated that the equipment was worth $ 2,400. at what amount should the equipment be recorded? at $ 2,000 or $2,400? justify your answer​

Answers

2,400 is the correct answer



Consumers spend the least amount of time-consuming news delivered in which format?

A.television
B.print
C.digital
D.radio

Answers

Answer: A. television. and D. Radio.

business studies grd 12 presentation on business environment​

Answers

The business environment is the set of internal and external factors that affect the operations and success of a business. It includes factors such as economic conditions, political and legal systems, technological advancements, social and cultural factors, and competitive forces.

Understanding the business environment is important for businesses because it enables them to identify opportunities and threats that may impact their operations.

Businesses can then use this information to make informed decisions about their strategies and plans.

For example, a business operating in a highly competitive market may need to focus on product differentiation or cost reduction strategies to stay competitive.

Similarly, a business operating in an unstable economic environment may need to adjust its pricing or marketing strategies to remain viable.

In summary, the business environment is a complex and dynamic system that affects businesses in various ways, and understanding it is critical for success in the business world.

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Required information Skip to question The Ferre Publishing Company has three service departments and two operating departments. Selected data from a recent period on the five departments follow: Service Departments Operating Departments Administration Janitorial Maintenance Binding Printing Total Costs $163,800 $122,850 $56,160 $321,750 $503,100 $1,167,660 Number of employees 60 35 140 315 210 760 Square feet of space occupied 15,000 10,000 20,000 40,000 100,000 185,000 Hours of press time 30,000 60,000 90,000 Administration is allocated based on number of employees; Janitorial based on space occupied; and Maintenance based on hours of press time. Required: Assuming that the company uses the direct method to allocate service department costs, how much cost would be assigned to each operating department

Answers

Answer:

The Ferre Publishing Company

The cost assigned to each operating department:

Binding =  $463,320      

Printing = $704,340

Explanation:

a) Data and Calculations:

                           Service Departments                    Operating Departments

               Administration  Janitorial  Maintenance      Binding         Printing

Total Costs $163,800    $122,850      $56,160         $321,750     $503,100 $1,167,660

Number of

 employees    60                 35               140                315                 210   760

Square feet

 of space

 occupied     15,000        10,000         20,000            40,000      100,000 185,000

Hours of

 press time                                                                  30,000       60,000       90,000

Allocation of Service Departments' Costs to the Operating Departments;

                           Service Departments                    Operating Departments

               Administration  Janitorial  Maintenance      Binding         Printing

Total Costs $163,800    $122,850      $56,160         $321,750     $503,100 $1,167,660

Admin.        (163,800)           8,190        32,760              73,710          49,140     0

Janitorial                          (131,040)        16,380            32,760          81,900

0

Maintenance                                      (105,300)           35,100          70,200  0

Total                                                                        $463,320      $704,340  $1,167,660

Rate of Administration Cost to the other departments =$234  ($163,800/700)

Janitorial   35*$234 = $8,190

Maintenance  140*$234 = $32,760

Binding 315*$234 = $73,710  

Printing 210*$234 = $49,140

Janitorial cost:

Rate based on space occupied = $131,040/160,000 = $0.819

Maintenance  = 20,000*$0.819 = $16,380

Binding   = 40,000*$0.819 = $32,760

Printing =   100,000*$0.819 = $81,900

Maintenance Cost of $105,300

Rate = $1.17 ($105,300/90,000)

Binding = 30,000*$1.17 = $35,100

Printing = 60,000*$1.17 = $70,200

PLEASE HURRY

1. What are the 3 parts of the Federal Reserve?

2. How many Board of Governors are there?

3. How many District/Reserve Banks are there?

4. Which Reserve Bank President always gets a vote with the FOMC (hint: which city)?

5. How many votes are there in the FOMC, the group that takes action on the nation's money supply?

6. What is the long term goal of the Federal Reserve (hint: discussed at the research department)

7. How do banks get money so that it can be lended out to businesses and consumers?

Answers

1. The Board of Governors
The Federal Reserve Banks
The Federal Open Market Committee

2. 7

3. 12

4. New York

5. 12

6. Maximum employment
Stable prices
Moderate long-term interest rates

7. Taking out loans from depositors and paying them back with a set interest rate

-transposition
-reversal of entries
-original entry
-omission

•Ethan records $1,000 as a rent expense; however, the actual rent paid was
$1,500.
•Ethan records stationery expenses as $251, but it should have been $215.
•Ethan records salaries of $5,000 as credits instead of debits.
•Ethan made a subtraction error while analyzing the profit on the sale of an
asset.
•Ethan completely overlooked stationery expenses of $115.
calculation
1000
Match each definition to each example.

-transposition-reversal of entries-original entry-omissionEthan records $1,000 as a rent expense; however,

Answers

Accounting error are errors committed in accounting, which are not intentional.

What is accounting error?

These are unintentional errors committed in accounting, which are often corrected when spotted.

Matching each definition to each example is shown below:

Ethan records $1,000 as a rent expense; however, the actual rent paid was $1,500  Original entryEthan records stationery expenses as $251, but it should have been $215    TranspositionEthan records salaries of $5,000 as credits instead of debits. Reversal of entriesEthan made a subtraction error while analyzing the profit on the sale of an asset.  CalculationEthan completely overlooked stationery expenses of $115.  Omission

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#hi makenzie thomas this is the owner of Brainly we or taking away some of your coins because of the inappropriate language and offensive cheating you have been using

:Thank You

Answers

Answer:

girl yk you aint nobodies owner

Explanation:

If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be _____.

Answers

Answer:

High

Explanation:

Entrants can be regarded as firms that are willing in entering a particular industry. As regards to market theory, a potential entry can become actual entry into a market on some condition such as when existing firms that are in the market have their earns above the Normal profit. It should be noted that If your firm is a potential entrant thinking about entering an industry, you want the entry barriers to be High

please help me this question answer
Explain 2 benefits to Hamdi of being the sole owner of the company?

Answers

Answer:

freedom of choice

no dispute or conflict

no need to share profit

own boss

Explanation:

Carl is considering attending a concert with a ticket price of $35. He estimates that the cost of driving to the concert and parking there will total an additional $20. In order to attend the concert, Carl will have to take time off from his part-time job or forgo studying for an exam scheduled for the next morning. He estimates that he will lose 5 hours of work, at a wage of $6 per hour or 5 hours of study time. If Carl considers studying the best alternative use of his time, his opportunity cost of attending the concert equals

Answers

Assuming Carl considers studying the best alternative use of his time, his opportunity cost of attending the concert equals will be $85

First step

Loss of money income= 5 hours × $6 per hour

Loss of money income= $30

Second step.

Expenses for attending the concert= $35 + $20

Expenses for attending the concert= $55

Now let determine the opportunity cost of attending the concert

Opportunity cost=$30+$55

Opportunity cost = $85

Inconclusion Assuming Carl considers studying the best alternative use of his time, his opportunity cost of attending the concert equals will be $85

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Lucas Diving Supplies Company, in its first year of business, had labor costs of $83,000, overhead costs of $115,000, materials purchases of $52,000, and ending Materials and Work-in-Process Inventories of $4,000 and $3,000, respectively. What is the amount of cost of goods manufactured in the first year of operations?

Answers

Lucas Diving Supplies Company, in its first year of business, had labor costs of $83,000, overhead costs of $115,000, materials purchases of $52,000, and ending Materials and Work-in-Process Inventories of $4,000 and $3,000, respectively. The amount of cost of goods manufactured in the first year of operations is $243,000.

What is cost of goods?

Cost of goods it represents the amount that is spent to manufacture the goods to be sold. These goods are sold to customers and the cost of sales is deducted from the revenue generated through sale of these goods.

labor cost of $83,000 is added with purchases of $52,000 with overhead cost off $115,000 the work in process inventories of $4,000 earn $3,000 is deducted from the above which results in cost of goods manufactured of $243,000

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2. Which of the following best describes the law of diminishing marginal utility?

A. A coffee shop hiring more and more workers, with each worker producing more
than the last


B. A tea house hiring more and more workers, with each worker producing less than
the last

C. A hot dog stand hiring more and more workers, with each worker producing the
same amount

D. None of the above

Answers

Answer: C. A hot dog stand hiring more and more workers, with each worker producing the same amount

Explanation:

would you suggest Unilever implement supply base optimisation? Justify your stance by discussing at least 2 key points.

Answers

Answer:

Certainly, it is advised that Unilever pursue supply base optimization.

Explanation:

Supplier base optimization is a method that aims to simplify the supplier base by identifying and eliminating providers that are not delivering value. Unilever may obtain better economies of scale and negotiate better pricing for the products and services it purchases by lowering the number of suppliers. This might result in cost savings for the organization, which could be passed on to consumers or reinvested in other parts of the business.

Improved Agility and Risk Mitigation: Unilever can lower its susceptibility to supply chain disruptions by streamlining its supplier base.With fewer suppliers to oversee, the organization is better able to monitor and manage supplier performance, identify possible hazards, and adopt risk mitigation methods. This can assist to assure supply continuity, shorten lead times, and increase overall supply chain agility.

In conclusion, applying supply base optimization may assist Unilever in improving efficiency, lowering costs, increasing agility, and mitigating supply chain risks.

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A. Think of a product and describe the stages of production the product goes through.

Answers

The life cycle of a product is associated with marketing and management decisions within businesses, and all products go through five primary stages: development, introduction, growth, maturity, and decline. Each stage has its costs, opportunities, and risks, and individual products differ in how long they remain at any of the life cycle stages.

In 2008, real GDP began to fall below potential GDP. The Fed responded by cutting the federal funds rate.

Use the Fed model to answer the following questions.

In 2008, real GDP began to fall below potential GDP. The Fed responded by cutting the federal funds rate.Use

Answers

The Federal Reserve reduced the federal funds rate from 5.25% to a range of 0-0.25% in December 2008.

How does a reduction in the federal fund rate affect the real intrest rate and the output gap?

A reduction in the federal fund rate will generally lead to a decrease in the real interest rate. This decrease in the real interest rate can encourage borrowing, investment and consumption, which will help to increase economic output and reduce the output gap. This can help to stimulate the economy and reduce unemployment, as businesses are more likely to invest in new projects and hire more workers when the cost of borrowing money is lower.

How does  a feds response affect inflation?

A Fed's response to inflation can have a major impact on the rate of inflation. The Fed can use monetary policy tools, such as changing the target federal funds rate, adjusting the money supply, and engaging in open market operations, to influence the growth rate of the money supply and the rate of inflation. For example, if the Fed raises interest rates, it can slow economic growth and reduce the rate of inflation. Conversely, if the Fed lowers interest rates, it can encourage economic growth and increase the rate of inflation.

What principle explains the relationship between the federal fund rate, the intrest rate, the output gap and inflation?

The principle that explains the relationship between the federal fund rate, the interest rate, the output gap, and inflation is the Phillips Curve. This principle states that there is an inverse relationship between the inflation rate and the unemployment rate (output gap). In other words, as the unemployment rate increases, the inflation rate decreases. As such, changes in the federal fund rate, which affects the interest rate, can be used to control inflation by either increasing or decreasing economic activity (output gap).

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Assignment:
You work in a customer services department and have been assigned to answer a complaint from a customer. The customer, Mr. Fitzpatrick, ordered a chainsaw three weeks ago and has not received it. He wants to know where the chainsaw is and when he is getting it.
Using business writing and coherent paragraphs, craft a message to the customer. Complete and submit your message for possible credit.
Developing Paragraphs:
• Develops coherent paragraphs by linking ideas, keeping paragraphs unified & varied sentence/paragraph length.
• Demonstrates the use of an effective topic sentence.
• Applies connecting words to link sentences.
• Crafts the message using active voice.
• Constructs powerful sentences with emphasized important ideas, repetition, and words that label.
• Applies an appropriate conclusion.

Answers

Answer:

The message is as follows:

Mr. Fitzpatrick, I’m so sorry your ordered chainsaw hasn’t arrived. I know how frustrating this must be. I’ve tracked the package and it’s currently listed as processed. I am attaching a link here so that you can track its progress.

Please contact me directly if your order hasn’t arrived within the given timeframe. In the meantime, I will do everything I can to locate your package.

Once again, I sincerely apologize for the inconvenience.

Explanation:

No explanation is required to support the answer.

Jennifer accepted her first job out of college and is moving to another state. How can her credit score affect her?

Landlords may contact prior landlords.
Lenders may look at business bankruptcies.
Insurers may look at garnishment of wages.
Government agencies may look at prior employment.

Answers

Answer:A

Explanation:

The credit score of Jennifer may be affected when she moves out of state for job after finishing her college, as the landlords may contact prior landlords. Hence, option A is correct.

What is a credit score?

A credit score is a report that describes and intends to showcase the credibility of an individual in the market. A good credit score results in ease of getting loans and EMI.

A credit score gets affected if there is any default in payments previously by the individual. If Jennifer has made any defaults in her rent payments, the landlords take a note of the same, as it affects her credibility.

Hence, option A holds true regarding a credit score.

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Entrepreneurs generally think differently about resources than do employee-managers in which of the following ways?

Answers

Managers want larger budgets; entrepreneurs work to do more with less.

How do entrepreneurs approach resources differently from employee-managers?

Entrepreneurs have a distinct mindset when it comes to resources compared to employee-managers. While managers often seek larger budgets to accomplish their goals, entrepreneurs tend to focus on doing more with less.

This difference in perspective stems from the inherent nature of entrepreneurship which involves taking calculated risks and maximizing efficiency in resource allocation.

Entrepreneurs understand that resources, such as capital, time, and manpower, are limited and valuable. They recognize that acquiring substantial budgets may not always be feasible, especially in the early stages of a venture.

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Third Parties In General (not Just With Health Care) Are Inefficient Because
a) its not their money
b) it means a large bureaucracy
c) it aways involves insurance
d) all above

Answers

Answer:

Third Parties In General (not Just With Health Care) Are Inefficient Because

b) it means a large bureaucracy.

Explanation:

Ordinarily, in an efficient market, there are no third parties.  The market participants remain buyers and sellers.  They are aided in their business dealings and for the determination of prices during the exchange by the invisible hand.  It is the invisible hand that ensures the existence of market equilibrium between demand and supply.  If this invisible hand is removed and a third party comes in to regulate the market and the activities of the market participants, usually the government, it implies that bureaucracy will increase.  It has been established that decisions made by the state are not always efficient because more costs are added to the decision-making process.

_____ allow job seekers to search several different sources at the same time. Indeed.com and Jobs2Careers.com are both examples of this type of Web site.


Job board Web sites

Meta job search engine Web sites

Corporate career center Web sites

Industry-specific Web sites

Answers

Answer:

I think the answer is job board websites

Explanation:

Answer:

Meta job search engine Web sites

Explanation:

I looked up each one of the possible answer's and Meta job search engine web sites makes the most amount of sense. I guess Job board web sites when I took the quiz and got it wrong so I know for sure that it isn't that one.

You are risk managers of your own life (student life). Identify your loss exposures (>10), assess them and make a map

Answers

The answer is in the question click this link to find out the answer phs.dcsdk12.org good luck!

Scientific management were more concerned with the problems at the.........a. operational b.High level​

Answers

Answer:

The correct option is a. operational level​.

Explanation:

Scientific management is a management theory that examines and combines workflows. Its fundamental goal is to increase economic efficiency, particularly worker productivity at thee operational level.

Operational level is a level at which operational activities of a business are carried out. Operational activities are company functions that are directly tied to supply of goods and/or services to the market. Basic business activities include producing, distributing, marketing, and selling a product or service.

Therefore, the correct option is a. operational level​. That is, scientific management were more concerned with the problems at the operational level​.

reducing accounts in chart of accounts

Answers

Answer:

Reducing the Chart of Accounts It may be possible to drastically shrink the number of expense accounts in use. In particular, consider using just the following mega-accounts: Direct costs. This account will probably contain the cost of materials and supplies used in the production process, as well as freight costs, and not a great deal more.

Explanation:

Pd 4(A) Set 2 iz Question 7 (1 point) When investing in individual stocks, you should expect that... O a Stock prices for a company are relatively easy to predict d GRADES Next Page Back Unforeseen company events can have a dramatic impact on the stock price for a company You will have an informational edge by reading an article about a company you want to invest in Stock prices for an individual stock will be more stable over the long-term than prices for a diversified index fund S ✓ Sub Question 7 of 19 |​

Answers

An investor should carefully consider their risk tolerance and investment goals before deciding whether to invest in individual stocks or index funds.

When investing in individual stocks, you should expect that unforeseen company events can have a dramatic impact on the stock price for a company. This is because the company's stock price reflects not only the company's current financial situation but also investors' expectations for the company's future performance.Unforeseen company events such as changes in leadership, new competitors, or regulatory changes can cause investors to reassess their expectations for the company's future performance, which can lead to fluctuations in the stock price.An investor should not expect that stock prices for a company are relatively easy to predict. This is because stock prices are influenced by a variety of factors, including company financial performance, economic conditions, market trends, investor sentiment, and geopolitical events. While some investors may try to predict stock prices using technical analysis or fundamental analysis, it is important to recognize that these methods have limitations and cannot guarantee accurate predictions.An investor can gain an informational edge by reading an article about a company they want to invest in. Reading articles about a company can provide valuable insights into the company's financial situation, growth prospects, and risks. However, it is important to recognize that reading articles is only one part of the investment process and should be supplemented by other sources of information, such as financial statements, analyst reports, and market data.An investor should not expect that stock prices for an individual stock will be more stable over the long-term than prices for a diversified index fund. In fact, individual stocks are generally more volatile than index funds because they are more susceptible to company-specific risks. By contrast, index funds are diversified across multiple companies and sectors, which can help to reduce overall portfolio risk.

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