What are some large-scale economic shifts that have created our present service economy

Answers

Answer 1

The capitalist system in the United States is one of the  large-scale economic shifts that have created our present service economy

What is meant by an economic shift?

Economic change, which can be characterized as a change in the economy's structure, policies, or growth, is one of the external factors that influence company decision-making.

Every country's economy has expansionary and contractionary eras. The levels of employment, productivity, and the overall demand and supply of the country's goods and services are what lead to these changes. These adjustments cause short-term expansionary and deflationary episodes.

An economic system known as a service economy is one in which the provision of services, as opposed to the production of products, is the primary activity. Road construction, medical treatment, food, lodging, and other professional services are some of these services.

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Related Questions

a group that managers or nonmanagerial employees form to help achieve their own goals or meet their own needs is called a(n)

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A group that managers or nonmanagerial employees form to help achieve their own goals or meet their own needs is called a(n) informal group.

What is an informal group?

An informal group is one that has no organizational control over it and is typically created by its members out of a desire for social interaction.

There are folks that share rides, play together, eat lunch together, and possibly even work together. These unofficial groupings originate for a variety of reasons, including shared hobbies, a common language, or other interpersonal ties.

Formal Groups are those formed by the organization with the intention of carrying out a certain task. Informal Groups are those formed by employees only for their own benefit.

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1. Concave Systems presently has earning interest and taxes of
$6 million. Its interest expenses are $1,000,000 a year, and it
pays $600,000 in annual dividends to its shareholders. Concave
has 300, 000 common shares outstanding, and its tax rate is 40
percent. Its annual capital expenditures are $900,000. Concave's
present priceto-earning ratio is 8.
a. Calculate the company's earnings per share and interpret.
b. Calculate the company's dividend payout ratio and interpret. 目
c. Calculate the company's dividend yield and interpret.

Answers

The company's earnings per share is 20, dividend payout ratio is 0.1  and dividend yield is 1.25.

What is Dividend payout?

The dividend payout is the ratio between dividend per equity share and earning per equity share.

Earning per share =  Earning net interest and tax/ Number of shares                 outstanding

                             = $6,000,000/3,00,000

                             = 20

Dividend per share = Total Dividend/ No of shares

                                 = $600,000/300,000

                                 = $2

Dividend payout ratio = Dividend per share/Earning Per Share

                                    = $2/20

                                    = 0.1

Market value per share = P/E Ratio × Earning per share

                                        = 8 × 20

                                         = $160

Dividend Yield =  Dividend per share/ Market Value Per Share

                         = $2/$160×100 = 1.25

Therefore the earning per share indicates the earnings of the company is attributable to the equity shareholders. The company's dividend payout ratio and dividend yield ratio indicate the percentage of earnings paid to shareholders via dividends.

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5. The process of production is complete
when...
A.goods of the right quality and
quantity reach the consumers.

B.the manufacturer produces a given
amount of goods.

C. retailers prepare goods for sale to consumers.

D. wholesalers buy goods from the
manufacturer.

Answers

The process of production is complete when retailers prepare goods for sale to consumers. Hence, Option C is correct.

What is the production process?

Capital, labour, technology, land, and other resources are considered factors of production because they are utilised to produce output, which includes commodities and services.

One of the most crucial procedures in manufacturing is production, which is essential to understanding what it means to be a manufacturer. Without this activity, there would be nothing produced that could be sold to buyers as finished goods.

Therefore, Option C is correct.

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Which 3 of these can you do when you select the Pencil icon on the bank account tile in the Banking center?

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The three (3) activities that can be done when one select the Pencil icon on the bank account tile in the Banking center are the following:

reorder the accountsDrag and drop the bank/credit card accounts to the right place, and then hit Save.

What is the Pencil icon on the bank account tile in the Banking center?

The pencil icon is a digital tool for editing. Perhaps, one may wish to have a different name or perceived a different name to be better fitting or need to correct a wrong name, one can easily rename or correct it by clicking the pencil icon to the right of the title and enter a new name.

Therefore, the correct answer is as given above.

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The complete question goes thus:

Which 3 of these can you do when you select the Pencil icon on the bank account tile in the Banking center?

reorder the accounts

Drag and drop the bank/credit card accounts to the right place, and

Save

setting

What is the best way to receive money internationally?

Answers

The best way to receive money internationally is by bank deposit.

What are bank deposits?

The most typical way to receive money from abroad is by a bank deposit, which happens when the person sending the money wires money from their bank account to yours. A very safe technique is a bank deposit.

Hence, Customers can utilize bank deposits, a type of savings product, to keep a certain amount of money in a bank for a predetermined period of time. In exchange, the financial institution will give the client the appropriate interest, depending on how much and how long they decide to deposit.

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Which of the following will not cause the consumption schedule to shift? The expectation of a recession. A change in consumer incomes. Agrowing expectation that consumer durables will be in short supply A sharp increase in the amount of wealth held by households.

Answers

The consumption schedule won't change as a result of shifting consumer incomes. As a result, choice (B) is the appropriate approach.

What is the consumption schedule?

The consumption schedule, also known as a consumption curve, depicts how much households want to consume at different levels of disposable income at a given time, assuming that the wealth, price level, expectations, debts, and taxes that are non-income determinants of consumption, do not change.

The goal of a consumption schedule is to give a way to derive the consumption line by summarizing the fundamental consumption-income relation for the family sector. The Keynesian economics aggregate expenditures line is built upon the consumption line.

Hence, option (B) is the accurate one.

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in which stage the attitude about the team and the project begins to shift to negative, and there is frustration around goals, tasks, and progress?

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The "win-lose" stage is when factions battle for control of an organization and people start to choose sides. Goals, tasks, and progress are becoming frustrating as the attitude toward the team and the work starts to change.

What is team development?

The evolution of a team goes through various "stages." Teams and team members frequently begin a project or endeavor from a place of friendliness and excitement, but once the hard work begins, the atmosphere can swiftly turn and the team dynamics can rapidly deteriorate.

Bruce Tuckman created a four-stage model in 1965 to describe the difficulties he had seen in team growth. Tuckman's Stages of Group Development was the name of the original model before he added the fifth stage, "Adjourning."

The Tuckman model's four stages are as follows:

FormingStormingNormingPerforming

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"Which of the following statements regarding private health insurance plans is true?
a. In a traditional indemnity plan, the premium cost is low if it is a high-deductible plan.
b. In managed care plans, employers contract with the health care service provider.
c. In traditional indemnity plans, the insured pays 80% of the eligible health care expenses.
d. In fee-for-service plans, the health care provider is the same as the insurer.
e. Group health insurance is a contract between pharmaceutical companies and the health care provider. "

Answers

The true statements regarding private health insurance plans is that a. In a traditional indemnity plan, the premium cost is low if it is a high-deductible plan.

What is a Private health insurance?

As a general insurance, a private health insurance means a health insurance plans marketed by the private health insurance industry as opposed to the government-run insurance programs. The health insurance currently covers a little more than half of the U.S. population.

Generally, this type of health insurance is obtained in two ways, either as an employment benefit or through direct purchase by an individual.

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All of the following riders can increase the death benefit amount EXCEPT:_____.
a) Cost of living
b) Waiver of Premium
c) Accidental Death Rider
d) Guaranteed Insurability

Answers

Except for Accidental Death Rider, all of the following riders can raise the death benefit amount. Thus option (C) is correct.

What is the benefit?

Discounted rates and other perks of a museum membership are examples of things that have positive or beneficial impacts or effects or that support well-being. The advantages of using the medicine exceed the hazards. taking advantage of the fruits of their labor.

If you drown while swimming, for example, an accidental death rider raises the amount to your life insurance beneficiaries. Because it has the potential to twice the amount of money your beneficiaries get, it is commonly referred to as a "double indemnity" rider.

Therefore, Thus option (C) is correct.

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check all of the following that are true about the response to the financial crisis of 2009.
A. greater government intervention into the economy was the hallmark of the incoming Obama administration and its “stimulus” package that passed through Congress in February 2009

B. although it included temporary payroll tax cuts, most of the package’s $831 billion was focused on government spending and therefore represented a Classical approach to countering a recession

C. with unemployment rising over the previous year to 7.6 percent, Obama asserted that the American Recovery and Reinvestment Act (ARRA) was necessary because the government “was the only entity left with the resources needed to jolt our economy” back to life

D. following the enactment of the stimulus package, the unemployment rate continued to rise, not only surpassing the eight percent estimate of the administration, but staying above eight percent for 43 consecutive months until late 2012

Answers

Option A and C. The  following that are true about the response to the financial crisis of 2009

Less government intervention into the economy was the hallmark of the incoming Obama administration and its “stimulus” package that passed through Congress in February 2009 with unemployment rising over the previous year to 7.6 percent, Obama asserted that the American Recovery and Reinvestment Act (ARRA) was necessary because the government “was the only entity left with the resources needed to jolt our economy” back to life

What was the financial crisis of 2009

The economic slowdown from 2007 to 2009 that followed the collapse of the U.S. housing bubble and the world financial crisis is known as "The Great Recession." Since the Great Depression of the 1930s, the Great Recession was the country's worst economic downturn.

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lean production requires that activities be __________________ to achieve production using minimal inventories.

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Lean production requires that activities be integrated to achieve production using minimal inventories.

What is Lean production?

Lean manufacturing can be described as the methodology  which help to focuses on minimizing waste within manufacturing systems  with the  productivity been maximized.

It should be noted that the Waste to the customers are those things that the customer do not see as a value to the product and they will not pay for it.

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nicole agrees with naomi to sell nicole's sports utility vehicle to naomi for $20,000. naomi assigns her right to buy the vehicle to oscar. oscar is

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Because Nicole agrees with Maomi to sell Nicole's sports utility vehicle to Naomi for $20,000. Because Naomi assigns her right to buy the vehicle to Oscar, then, Oscar is an assignee.

What is an Assignment in Law?

Basically, an assignment means a process whereby a person (the assignor) transfers rights or benefits to another (the assignee). An assignment may not however transfer a duty, burden or detriment without the express agreement of the assignee and the right/benefit being assigned may be a gift (such as a waiver) or it may be paid for with a contractual consideration such as money.

The rights on an assignment may be vested or contingent and may include an equitable interest. A mortgages and loans are relatively straightforward and amenable to assignment. An assignor can assign rights such as a mortgage note issued by a third party borrower, and this would require the latter to make repayments to the assignee.

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when the values of a set of currencies are set against each other at some mutually agreed on exchange rate, a exchange rate exists.

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A fixed exchange rate, also known as a pegged exchange rate, is a form of exchange rate regime in which a monetary authority fixes or pegs the value of one currency against the value of some other currency, a basket of currencies, or another measure of worth, such as gold.

What is the fixed exchange rate?

A fixed exchange rate is a system used by a central bank or a government that links the value of the nation's official currency to the currency of another nation or the price of gold. The goal of the fixed exchange rate system is to maintain a currency's value within a specific range.

A fixed exchange rate promotes the efficient transfer of funds from one nation to another. It facilitates the attraction of foreign investment to smaller and less developed nations. Additionally, it aids the smaller nations in preventing currency depreciation and maintaining steady inflation.

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Which of the following is NOT true about capital budgeting? a. It involves identifying projects that will add to a firm's value. b. It involves investing large capital. c. It allows a firm to reverse the decision of large capital investments at any time. d. It allows a firm's management to analyze potential business opportunities and decide on which ones to undertake.

Answers

The following is NOT true about capital budgeting It allows a firm to reverse the decision of large capital investments at any time.  Thus the correct option is C.

What is capital budgeting?

When a company wants to assess potential big projects or investments, they use capital budgeting. The creation of accountability and measurability makes it significant for business.

When creating a capital budget, projects that will increase a company's worth are considered. It entails spending a lot of money. It enables the management of a company to assess possible business prospects and choose which ones to execute.

Therefore, option C is appropriate.

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Which of the following statements is true for a perfectly competitive firm but NOT true for a monopoly?

a) The firm's price is equal to its average revenue.
b) The firm cannot affect the market price for its good.
c) It is difficult for other firms to enter the industry.
d) The demand for the firm's product is unit elastic.
e) The firm must lower its price in order to sell more of its product.

Answers

The statement that is true for a perfectly competitive firm but not true for a monopoly is the firm cannot affect the market price for its good. (option b)

What is a perfect competition and a monopoly?

A perfect competition is when there are numerous buyers and sellers of identical goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into a perfectly competitive firm. The demand for the firm's product is perfectly elastic.

A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. The demand curve is downward sloping. it sets the price for its goods and services. An example of a monopoly is a utility company

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Option E. The answer that is true for the perfectly competitive firm but NOT true for a monopoly is The firm must lower its price in order to sell more of its product.

What is meant by the monopoly?

A scenario known as monopoly occurs when there is only one seller in the market. The monopoly case is viewed as the polar opposite of perfect competition in conventional economic analysis. The industry's downward-sloping demand curve is, by definition, the demand curve that the monopolist faces.

a market arrangement in which there is just one seller and only one type of goods available. As the only vendor of the goods with no viable alternatives, the seller in a monopoly market has no rivals.

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Which of the following is not a repayment method for a Stafford Loan?
Extended Repayment
Graduated Repayment
Success Repayment
Income Based Repayment

Answers

A repayment method that does not apply to a Stafford Loan is C. Success Repayment.

How can you pay back a Stafford Loan?

A Stafford Loan is given by the government and it helps students attend colleges because the loans given have low interest rates. When a person is done, they can pay back the Stafford Loan through an extended repayment overtime.

One can also pay back through a graduated repayment method. Income based repayment takes into account, the income of a person and what amount they can afford to pay. Success repayment is not a repayment method as it does not include money.

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Draw an organization chart of an organization with which you’re familiar (where you work, a student organization to which you belong, your college or university, etc.). Be very careful in showing the departments (or groups) and especially be careful to get the chain of command correct.

Answers

By using an University as a reference, the Organization chart of the institution will highlight the top hierarchy to the bottom hierarchy of the institution's staff. An example is attached as picture.

What is an Organization chart?

An organizational chart refers to a diagram or model that conveys an institution's internal structure by detailing the roles, responsibilities, and relationships between individuals within an entity. It is one of the way of visualizing a bureaucracy.

Its graphically represents the organization's structure, highlights different jobs, departments, and responsibilities that connect the company's employees to each other and to the management team.

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Put the following hypothetical events, illustrating frictional unemployment, in chronological order. Start by clicking the first item in the sequence or dragging it here Drag the items below into the box above in the correct order, starting with the first item in the sequence. Burger chain A introduces a new product, the MegaBurger. Burger chain B lays off some of its workers. Burger chain A hires more workers as a result of increased demand for its products. At the same time, burger chain B begins to lose market share to burger chain A. Customer demand for burger chain A’s new burger is high. Unemployed burger chain workers are hired by burger chain A.

Answers

Answer:

1. Burger chain A introduces a new product, the MegaBurger.

2. Customer demand for burger chain A’s new burger is high.

3.  Burger chain A hires more workers as a result of increased demand for its products. At the same time, burger chain B begins to lose market share to burger chain A.

4. Burger chain B lays off some of its workers.

5. Unemployed burger chain workers are hired by burger chain A.

Explanation:

Frictional unemployment is typically temporary. It is due to the time lag between a worker’s being laid off from one job and finding another one.

a(an) ________ locus of control is the belief that our outcomes are outside of our control; an ________ locus of control is the belief that we control our own outcomes.

Answers

Answer:

a(an) external locus of control is the belief that our outcomes are outside of our control;

an internal locus of control is the belief that we control our outcomes

The Santa Fe Manufacturing Company has two divisions in Kansas, the Holton Division and the Derby Division. Currently, Derby buys a part (10,000 units) from Holton for $16 per unit. Holton has purchased new equipment and wants to increase the price to Derby to $18 per unit. The controller of Derby claims that she cannot afford to go that high, as it will decrease the division’s profit to near
zero. Derby can buy the part from an outside supplier for $16 per unit. The incremental costs per unit that Santa Fe incurs to produce each unit are Holton’s variable costs of $12. Fixed costs per unit for Holton with the recent purchase of equipment are $5.


Holton has no alternative uses for its facilities. Should Derby continue to buy from Holton or buy from the external supplier?
answer choices
Company as a whole Buy from external supplier
Derby Division only Buy from external supplier
Company as a whole Buy from external supplier
Derby Division only Buy from Holton Division
Company as a whole Buy from Holton Division

Answers

Option D. The option that Derby would have to make would be : Buy from Holton  division : Buy from external supplier

How Derby would have to make the choice

The cost to the company for the Holtan Division is $5 per unit. Whether or not the company produces parts in the Holtan Division, this cost is a fixed cost.

Now, the price per unit will be: $12 Variable Cost + $ 5 Fixed Cost = $ 17/ Unit if the material is produced in Holtan Division.

and the cost per unit will be: $ 16 Buying Cost + $ 5 Fixed Cost + $ 21/unit if the material is obtained from an outside buyer.

As a result, the company should create its own parts at the Holtan Division and sell them to Derby. Each unit will save $3 (21-17).

Second, just for the Derby Division

If buying through Holtan, the price per unit is $ 18 per unit.

Cost per unit, if bought from an outside source: $16 per unit

Therefore, if Derby division purchases from an outside supplier, they might save $2/unit. So, buy from external supplier.

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hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities, is called

Answers

Hiring others to perform some of the noncore activities and decision making in a company's value chain, rather than having the company and its employees continue to perform those activities, is called Outsourcing.

What is Outsourcing?

Outsourcingcan be described as the way tat a omany can seek for labor outside the company, this method is usually used when a firm is seeking for a cheap labor.

It should be noted that some comapany do outsource from outside the company while some do perform outsourcing within the country all for cheap labor.

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Controls allow top management to decentralize decision making at lower levels within the organization and to encourage employees to work together in teams. True / False

Answers

Controls allow top management to decentralize decision making at lower levels within the organization and to encourage employees to work together in teams. The given statement is true.

What do you mean by the top management?

Top management is made up of those who control an organization's resources, authority, and ability to make decisions. They also have control over how the organization changes.

The organization's top management is in charge of setting policies, rules, and strategic goals as well as giving leadership and guidance for quality management.

Additionally, it ought to identify persons in charge and keep them answerable for a variety of management system procedures.

Therefore, controls allow top management to decentralize decision making at lower levels within the organization and to encourage employees to work together in teams. The given statement is true.

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Determining the Beginning and Ending Inventory from a Partial Spreadsheet: Periodic Inventory System
From the following partial spreadsheet, indicate the dollar amount of beginning and ending merchandise inventory to be used to compute cost of goods sold.
ACCOUNT TITLE
Merchandise Inventory
Estimated Returns Inventory
Supplies
Prepaid Insurance
Customer Refunds Payable
Income Summary
Sales
Sales Returns and Allowances
Beginning inventory
Ending inventory
Feedback
T Chack My Word
ADJUSTMENTS
DEBIT
X
60,000.00
6,000.00
55,000.00
5,500.00
2,200.00
CREDIT
55,000.00
5,500.00
4,700.00
1,600.00
2,200.00
60,000.00
6,000.00
ADJUSTED TRIAL BALANCE
DEBIT
60,000.00
6,000.00
3,300.00
3,800.00
55,000.00
5,500.00
16,700.00
CREDIT
7,200.00
60,000.00
6,000.00
525,140.00

Answers

The indication of the dollar amounts of beginning and ending merchandise inventory, which will be used to compute the cost of goods sold, is as follows:

Beginning inventory = $60,500Ending inventory = $66,000.

What is the cost of goods sold?

The cost of goods sold is the sum of the beginning inventory and purchases minus the ending inventory.

The cost of goods sold can also be computed by subtracting the ending inventory from the cost of goods available for sale under the periodic inventory system.

Under the periodic inventory system, the cost of goods sold is determined at the end of the period and not during the inventory transactions.

ACCOUNT TITLE                     Adjustments          Adjusted Trial Balance

                                                Debit          Credit     Debit              Credit

Merchandise Inventory         60,000      55,000    60,000

Estimated Returns Inventory  6,000        5,500       6,000

Supplies                                                      4,700       3,300

Prepaid Insurance                                      1,600       3,800

Customer Refunds Payable                     2,200                              7,200

Income Summary                 55,000     60,000     55,000          60,000

                                               5,500        6,000       5,500            6,000

Sales                                                                                             525,140

Sales Returns and Allowances 2,200                   16,700

Beginning inventory   = $60,500 ($55,000 + $5,500)

Ending inventory = $66,000 ($60,000 + $6,000)

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Which of the following statements about liabilities is true? Multiple Choice O In part, liabilities are probabile, future sacrifices of economic benefits that result from past transactions or events Current abilities as obligations payable within one year from the balance sheet date or within the firm's operating cycle, whichever is shorter Libes ordinary are recorded at their maturity amounts In practice, payable after one year from the balance sheet date ordinarily are recorded at their maturity amounts

Answers

Liabilities are potential future losses of financial gains due to transactions or events in the past. Regarding liabilities, this remark is accurate. As a result, choice (A) is the best way to respond.

What are liabilities?

A liability is defined in financial accounting as the future forfeitures of economic benefits that an entity must make to other entities as a result of previous transactions or other previous events, the resolution of which may result in the transfer or use of assets, the provision of services, or another future yielding of economic benefits.

Financial accounting liabilities do not always have to be based on legally enforceable duties; they can be based on constructive or equitable responsibilities.

Hence, option (A) is accurate.

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which phase of the product life cycle is marked by slow sales growth, heavy investment, no profits, and few competitors?

Answers

The phase of the product life cycle which is marked by slow sales growth, heavy investment, no profits, and few competitors is: B. Introduction.

What is a product life cycle?

A product life cycle can be defined as all of the phases or stages that a specific product moves through, primarily from the point (period) it was introduced by the manufacturer (producer) into the market to the point (period) when it is eventually revoked and moved from the market.

Generally speaking, there are four (4) main stages in the product life cycle and these including the following;

Introduction.Growth.Maturity.Decline

In conclusion, we can reasonably infer and logically deduce that businesses experience no profits, slow sales growths, few competitors, with heavy investment and expenses at the introduction stage of a product.

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Complete Question:

Which phase of the product life cycle is marked by slow sales growth, heavy investment, no profits, and few competitors?

A. Product Development

B. Introduction

C. Growth

D. Maturity

E. Decline

Assess the potential areas of conflict between the purchasing and design functions, using examples to illustrate your answer.

Answers

The potential areas of conflict between the purchasing and design functions is based on their different need for example, The design  function can be more focus on tasteful beauty of the product while the purchasing group are more focused on the cost-viability.

What connection exists between design and purchasing?

The design function create a product based on the necessary technological requirements. After that, production planning receives a parts list. As a result, the purchasing department's sole responsibility is to find the defined components at the lowest possible cost.

The procurement cost issues that businesses report encounter are:

Not adhering to purchasing policy is the first issue.Second issue: rogue or fraudulent spending.Overspending is the third issue.

Therefore,  an AI-driven Insights in Purchasing Intelligence are the Solution to the problems.

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for investors, credit rating agencies provide independent, easy-to-use measurements of relative credit risk. the most well-known credit rating agencies are ______. (check all that apply.)

Answers

The most well-known credit-rating agencies, which provide independent, easy-to-use measurements of relative credit risk are Standard and Poor, Fitch, and Moody.

What is a credit-rating agency?

A credit-rating agency is an investment bank that evaluates financial instruments.

A credit-rating agency provides credit ratings and quality information about corporate and municipal borrowers and the financial securities (for example, the bonds and stocks) they issue to potential lenders.

The credit-rating agency sells the credit ratings to interested entities.

During the evaluation process, the credit rating agencies consider the credit risks, the interest rates, and the financial performance and position of borrowing entities.  They also suggest the interest rate that each financial security should attract.

Thus, credit-rating agencies provide information about borrowing entities' creditworthiness; the best known are Standard and Poor, Fitch, and Moody.

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a firm that wanted to enable its employees to use and share data without allowing outsiders to gain access could do so by establishing an) internet internet. extranet. intranet.

Answers

A firm that wanted to enable its employees to use and share data without allowing outsiders to gain access could do so by establishing an)  d. intranet.

What is intranet?

Intranet can be defined as a type of private network that enables only people within an organization to be connected to the internet while on the other hand extranet is a public network as everyone can access it.

Most companies tend to make use of intranet  so as to enables only their  employees to have access to  the company sensitive​ or confidential information  they have store on their  computer network.

Therefore the correct option is D.

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Which of the following assets is NOT considered to be an ordinary asset?
Inventory in taxpayer's business
Equipment owned for six months and used in taxpayer's business
Accounts receivable in taxpayer's business
Corporate stock in taxpayer's investment portfolio

Answers

Option 4. Corporate stock in taxpayer's investment portfolio  is NOT considered to be an ordinary asset.

What is an ordinary asset?

Ordinary assets, such as stock or property held for sale, like inventories, are typically employed in the regular course of the taxpayer's business or trade.

Contrarily, ordinary assets are possessions that the taxpayer uses in the course of their business or trades or that they hold in order to sell to customers.

Any real estate held by a taxpayer that is not included in the list of real estate that is deemed to be ordinary assets under Section 39(A)(1) of the Code is referred to as capital assets, regardless of whether it is related to the taxpayer's trade or business. 4. Real estate used by the taxpayer in their trade or company.

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If sales are $1,000,000 and contribution margin is $250,000, the contribution margin ratio is % Contribution margin ratio __________ 81%

Answers

The required contribution margin ratio will be 0.25.

What is the contribution margin ratio?

The contribution margin ratio is the ratio of the contribution margin to the sales.

Contribution margin ratio = Contribution margin ÷ Sales

As per the given question, the data will be as:

Sales = $1,000,000

Contribution margin = $250,000

Contribution margin ratio = Contribution margin ÷ Sales

Contribution margin ratio = $250,000 ÷ $1,000,000

Apply the division operation, and we get

Contribution margin ratio = 0.25

Thus, the required contribution margin ratio will be 0.25.

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