Task Team of FUNDAMENTAL ACCOUntING hool of Business, Sun Y at-sen University Lesson 6 Accounting for Merchandising Activities Self-Test L. True and False Questions The income statement of a wholesaler includes a deduction from revenue representing the cost
An individual has a comparative advantage in the production of a particular good if she can produce it at a lower opportunity cost than other individuals. An individual has an absolute advantage in the production of a good if she can produce more of that good than another individual. using comparable amounts of time. raw materials and effort
1. The principle of increasing opportunity cost, also known as the low-hanging-fruit principle, says that the least costly options should be exploited first, with more costly options taken up only after the least costly ones have been exhausted. At low prices, only those with low opportunity costs of producing the product would find it worthwhile to offer it for sale. As prices
Where we've been. Basic Skills:(Time value of money, Financial Statements) Investments: (Stocks, Bonds, Risk and Return) Corporate Finance: (The Investment Decision- Capital Budgeting)
1. Dear sirs We refer to contract No 645 for 500 pieces of printed cotton. The contract was made on a cfr basis, whereas your letter of cred it stipulates CIF. This inconsistency must obviously be resolved To avoid any further delay in shipping, we suggest that we arrange the insurance cover. The premium will cost US$140 and we could deduct it from the 2% commission payable to you. The balance
