GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation during a specific time period (say a quarter or a year). It accounts for all the output produced inside a nation's boundaries.
The total amount of private and public consumption, government expenditures, investments, additions to private inventories, and paid-in all go into calculating a nation's GDP.
A input or an output, is GDP?
GDP measurement
GDP calculates the monetary value of the final goods and services—those purchased by the consumer—produced in a nation during a specific time period (say a quarter or a year). It accounts for all the output produced inside a nation's boundaries.
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the income statement ______.
The income statement is financial statements. Along with the balance sheet and the cash flow statement, the income statement is one of the three key financial statements that summarize a company's operating results for a given accounting period.
The revenue, costs, profits, and losses incurred by a corporation over a specific time period are the main topics of the income statement. An equation can be used to determine a company's net profit or loss for a given time period by plugging the expenses, income, gains, and losses from the income statement into the equation.
The timely decision-making required to uphold your company's financial stability is made easier with the help of this information. Revenues - Expenses = Net Income is the fundamental equation for an income statement. This simple equation determines whether the company is profitable. In a productive firm, sales must exceed expenses.
When you apply for business loans or seek investor interest, you must provide an income statement. The income statement displays the company's historical profitability and is also used to forecast future profitability, which reveals the company's capacity to pay back loans.
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if the total book value of the assets of the accounting entity is $4,350,000, and the total liabilities of the accounting entity are $1,235,000, the stockholder's equity in the accounting entity is
The stockholder's equity in the accounting entity is $3115000.
What is book value?In accounting, an asset's book value is its value[1] as expressed by the balance in its balance sheet account. Asset values are determined by subtracting any depreciation, amortization, or impairment expenses from the asset's initial cost. The total assets of a corporation, less intangible assets and liabilities, are often considered to be its book value. However, in actuality, the inclusion of goodwill, intangible assets, or both may vary depending on the methodology used to calculate book value. The value of a company's personnel, which makes up a portion of its intellectual capital, is never taken into consideration. The term "tangible book value" is frequently used to specify the statistic when goodwill and intangible assets are specifically omitted.
In the UK, the phrase "net asset value" might apply to book value of a company.
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Sofia makes $120 a day as a bank clerk. She takes two days off work without pay to fly to another
city to attend the concert of her favorite band. The cost of transportation and lodging for the trip is
$300. The cost of the concert ticket is $80. The opportunity cost (not total cost) of Sofia's decision
to attend the concert is
$240.
$620.
$380.
$300.
Respuesta:La respuesta es 380
Explanation: Porque,en el problema nos plantea ¿Cuánto gasta si viaja más la entrada? Pero somos dice,no pongas el total gastado,se refiere a que no sumemos los días no pagados
Además que no nos dice si ya le pagaron entonces no tiene un ahorro.
Terrence and Benita were married for 53 years. Terrence died on June 10, 2021. Benita has no dependents and she did not remarry. The correct and most favorable filing status for Benita's 2021 return is?
A. single
B. married filing jointly
C. married filing separately
D. qualifying widow
For Benita's 2021 return, the most favorable filing status is married filing jointly.
When only one spouse makes a living or has the largest income, filing jointly with your spouse is frequently the best option.
If both couples earn incomes that are substantial and unequally distributed, however, you may be better off filing separately.
Married Filing Jointly: What Is It?
Married couples can file their taxes together by choosing the filing status known as married filing jointly. A married couple can report their individual incomes, deductions, credits, and exemptions on the same tax return while filing their taxes as a married couple.
Filing Separately vs. Jointly by Married People
Your combined total tax obligation is frequently lower when you file as married filing jointly than it would be if you and your spouse had each filed separately. Couples are enticed to file jointly by the Internal Revenue Service (IRS) by a number of tax benefits that don't apply to other filing statuses.
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how to do this questions?
The Net Income for 2018 after all income and money used will be $320.40.
Total Sales = $3,060
Receiving goods price =$ 1,800
Total Money used = $600
Earnings before = $660
Money used = $126
Earnings before =$ 534
40% =$ (534 × 40%)
=$ 213.60
Net Income for 2018 = $320.40
What is Net Income?
The amount earned by an individual or business after costs, allowances, and taxes is referred to as net income. Net income is the amount that remains after all costs, such as salaries and wages, the cost of goods or raw materials, and taxes, have been paid. Net income is the amount that a person keeps after paying taxes, health insurance premiums, and retirement contributions.
So, The correct option is C.
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the gdpr created a ________ framework in order to enable u.s. businesses to legally use personal data from eu countries.
The GDPR created a Safe harbor. Framework in order to enable U.S. businesses to legally use personal data from EU countries.
General Data Protection Regulation (GDPR) created a framework called Safe harbor.
Safe harbor is an agreement between the United States Department of Commerce and the European Union, the framework safeguards the European citizen's personal data (data protection). The General Data Protection Regulation (GDPR) is a framework of law that establishes standards for the gathering and handling of personal data from. Safe harbor is a term in a law or regulation that, under certain circumstances, protects from legal responsibility or other penalties. Safe harbor rules shield individuals and organizations from liability for unexpected errors .safe harbor are helpful if Anyone acting in good faith who may otherwise break the law for reasons beyond their control now has peace of mind thanks to these laws.
Completed question ): The GDPR created a framework in order to enable U.S. businesses to legally use personal data from EU countries.
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when evaluating how much to produce, increase the quantity produced if the marginal benefit of an additional item is _____ the marginal cost of the additional item.
If the marginal benefit of an extra item is greater than or equal to the marginal cost of the additional item, raise the quantity produced when determining how much to produce.
The difference in total production costs caused by creating or producing one extra unit is known as the marginal cost in economics. Divide the variation in production costs by the variation in quantity to determine marginal cost. Finding the point at which an organisation can realize economies of scale to improve production and overall operations is the goal of marginal cost analysis. The producer may make money if the marginal cost of producing one extra unit is less than the price per unit.
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Nando’s Company has a debt to equity ratio of 0.80. ROA is 9.7 percent, and total equity is $735,000. What is the equity multiplier? Return on equity? Net income?
If Nando’s Company has a debt to equity ratio of 0.80. ROA is 9.7 percent, and total equity is $735,000. The equity multiplier is 1.8 ,Return on equity is 17.46%, The Net income is $128,331.
Equity multiplier, return on equity and net incomea) Equity Multiplier
Equity multiplier ratio = 1 + debt-equity ratio
Equity multiplier ratio = 1 + 0.8
Equity multiplier ratio = 1.8
b) Return on equity
Return on equity = Equity multiplier × return on assets ratio
Return on equity = 1.8 × 9.7%
Return on equity = 17.46%
c) Net income
Net income = Return on equity × total equity
Net income = 17.46% × $735, 000
Net income = $128,331
Therefore the equity multiplier is 1.8.
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monthly sale of beer at a bar is believed to be approximately normally distributed with mean 2450 units and standard 400 units.to determine the level of orders and stock ,the management wants to find two value symmetrically on either side of mean,such that the probability that sales of beer during the month will be between the two values is 0.95 and 0.99 find the required value
Using the normal distribution, the values are given as follows:
Probability 0.95: between 1666 and 3234 units.Probability 0.99: between 1420 and 3480 units.Normal Probability DistributionThe z-score of a measure X of a variable that has mean [tex]\mu[/tex] and standard deviation [tex]\sigma[/tex] is given by the rule presented as follows:
[tex]Z = \frac{X - \mu}{\sigma}[/tex]
The z-score measures how many standard deviations the measure X is above or below the mean of the distribution, depending if the z-score is positive or negative.From the z-score table, the p-value associated with the z-score is found, and it represents the percentile of the measure X in the distribution.In the context of this problem, the mean and the standard deviation of sales are given as follows:
[tex]\mu = 2450, \sigma = 400[/tex]
For the interval with 95% probability, the bounds are calculated when Z = -1.96 and Z = 1.96, excluding the 2.5% of the tails of the distribution, hence:
[tex]Z = \frac{X - \mu}{\sigma}[/tex]
-1.96 = (X - 2450)/400
X - 2450 = -1.96(400)
X = 1666.
[tex]Z = \frac{X - \mu}{\sigma}[/tex]
1.96 = (X - 2450)/400
X - 2450 = 1.96(400)
X = 3234.
For the interval with 99% probability, the bounds are calculated when Z = -2.575 and Z = 2.575, excluding the 0.5% of the tails of the distribution, hence:
[tex]Z = \frac{X - \mu}{\sigma}[/tex]
-2.575 = (X - 2450)/400
X - 2450 = -2.575(400)
X = 1420.
[tex]Z = \frac{X - \mu}{\sigma}[/tex]
2.575 = (X - 2450)/400
X - 2450 = 2.575(400)
X = 3480.
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Having more capital goods requires
spending more of our money on consumer goods
giving up some present day consumption
giving up some present day investment spending
increased government regulation about what should be produced
Answer:
spending more money on consumer
Department S had no work in process at the beginning of the period. It added 14,400 units of direct materials during the period at a cost of $100,800. During the period, 10,800 units were completed, and 3,600 units were 32% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $51,500, and factory overhead was $8,000.
The total conversion costs for the period were
The total conversion costs for the period for Department S was $59500.
What are conversion costs?Conversion costs are those costs that are incurred to convert raw materials into finished goods/services. They can be called production costs and they are also direct costs. In cost accounting, the concept is used to calculate the value of ending inventory, which is then reported on the balance sheet.
Conversion cost derives its name from the fact that the costs that comprise conversion cost are all of the costs incurred to convert raw material into a finished good. These expenses include direct labor and manufacturing overhead.
These costs include direct labor cost and factory overhead cost. In this question, only direct labor and factory cost are conversion costs.
Direct labor = $51,500
Overhead = $8,000
Therefore, total conversion costs will be:
= $51,500+$8,000
= $59500
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One of the disadvantages of global joint ventures is that, unlike licensing and franchising, they do not help companies to avoid tariff and nontariff barriers to entry.
a. True
b. False
"One of the disadvantages of global joint ventures is that, unlike licensing and franchising, they do not help companies to avoid tariff and nontariff barriers to entry." This statement is False.
Franchising is grounded on a marketing conception that can be espoused by an association as a strategy for business expansion.
Franchising is a type of agreement that entails reproducing a successful business model across multiple locales. As the business proprietor and franchisor, you would produce a ballot agreement to begin the process and move toward opening a new franchise
.Franchising is a business relationship between two realities wherein one party allows another to vend its products and intellectual property. For illustration, several fast food chains like Domino's and Mcdonald's operate in India through franchising.
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The amount of water consumed each day by a healthy adult follows a normal distribution with a mean of 1.56 liters. A health campaign promotes the consumption of at least 2.0 liters per day. A sample of 10 adults after the campaign shows the following consumption in liters:
1.88 1.74 1.98 1.70 1.86 1.72 1.74 1.98 1.68 1.50
At the 0.025 significance level, can we conclude that water consumption has increased? Calculate and interpret the p-value.
Click here for the Excel Data File
a. State the null hypothesis and the alternate hypothesis. (Round your answers to 2 decimal places.)
b. State the decision rule for 0.025 significance level. (Round your answer to 3 decimal places.)
c. Compute the value of the test statistic. (Round your intermediate and final answer to 3 decimal places.)
d. At the 0.025 level, can we conclude that water consumption has increased?
e. Estimate the p-value.
Yes we can conclude that the water consumption has increased at 0.025 level of significance.
How to solve for the meanThe mean is given as
(1.88 + 1.74 + 1.98 + 1.70 + 1.86 + 1.72 + 1.74 + 1.98 + 1.68 + 1.5)/10 = 1.778
= 17.78 / 10
standard deviation calculator
= (1.88 - 1.778)² + ... + (1.50 - 1.778)² / 10
= 0.19796 / 10
= 0.019796
σ = √0.019796
standard deviation = 0.14069825869569
b. At alpha = 0.025, the critical value is t* = 2.262
Reject H0 if t > 2.262
c. Test statistic
= x - u / s √n
= 1.778 - 1.56 / 0.14069 / 3.1622
= 0.218 / 0.0444911
= 4.8998
d. Given that the test statistic is seen to be greater than the critical value, we would have to reject the null.
At 0.025, the assumption would be that the consumption of water has increased.
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in the short run, which of the following firms should attempt to produce where average costs are at a minimum in order to maximize profits or minimize losses?
a. perfectly competitive firm
b. a monopolistically competitive firm
c. an oligopoly
d. a monopoly
e. none of the above
Answer: A perfectly competitive firm
Explanation:
Which of the following is NOT an example of a liability?
O Cash
O Equipment loans
O Charge accounts
O Rental fees
According to the given information Cash is NOT an example of a liability.
The correct option is A.
What liabilities mean?Payables, wages, and taxes are examples of current liabilities, which are sums owed for ongoing costs. Current obligations will include payments on long-term debt due in the following year. A company records the following in a liability account, which is a general ledger account as a result of commercial transactions.
Why liability is credited?Liability accounts are parts of the company's books that display its debt. When a liability account is debited, the quantity owed by the company is reduced (i.e., the liability increases), and when a liability bank is credited, the amount owed by the company develops (i.e. increases the liability).
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The complete question is -
Which of the following is NOT an example of a liability?
A- Cash
B- Equipment loans
C- Charge accounts
D- Rental fees
effective guiding policy is supported by and stays consistent through the use of ______.
The effective guiding policy is supported by and stays consistent through the use of strategic commitments.
Strategic commitments that senior management and key personnel for the duration of the employer purchase in to drive the corporation forward to attain its targets. therefore, they have dedicated themselves to the success of the corporation. furthermore, they execute the strategies of the agency as efficaciously as feasible.
Whilst employees are dedicated to a method and its implementation they may be extra stimulated to put into effect it. Organizational individuals who strongly consider the strategy and its dreams are more likely to be willing to make greater efforts on its behalf. This in flip results in higher method execution performance.
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Out of the following economic statistics, which is the best measure of economic prosperity?
Group of answer choices
The growth rate of real GDP
The level of real GDP
The price level
The level of nominal GDP
The level of real GDP is the best economic statistics for measuring an economic prosperity.
What is a real GDP?The term real GDP is an acronyms for the real gross domestic product. This economic tool means an inflation-adjusted measure that reflects the value of all goods and services produced by an economy in a given year (expressed in base-year prices). It is also referred to as constant-price or inflation corrected GDP.
This type of GDP makes the comparison of GDP from year to year or from different years more meaningful because it shows difference comparisons for both the quantity and value of goods and services. It is calculated by dividing nominal GDP over a GDP deflator.
In conclusion, an economists mainly use a simple economic measure known as GDP to define prosperity whether being measured in total for a country or on a per-capita basis, the GDP is the most familiar and widely used measure of national progress.
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a consumer magazine published by a retail business for readers having demographic characteristics similar to those consumers with whom it typically does business is
A consumer magazine published by a retail business for readers having demographic characteristics similar to those consumers with whom it typically does business is Brand Magazine.
What is a brand magazine?A branded magazine is a manner for an organization to marketplace its services or products through offering readers with original, enticing content material as a way to encourage and inform. The content material gives cost to the target market and frequently foregrounds the brand`s services or products in a way of life context, enticing with readers who can see their personal lives pondered withinside the content material.
Branded magazines can shape a crucial a part of your content material advertising and marketing approach on the subject of the retention and loyalty stop of the income funnel. They are a powerful manner of growing a dating among manufacturers and their target market and might regularly convey collectively actual and virtual global activities in a single place.
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The ledger of Duggan Rental Agency on March 31 of the current year includes the following selected accounts before adjusting entries have been prepared.
Debit Credit
Prepaid Insurance $ 3,600
Supplies 2,800
Equipment 25,000
Accumulated Depreciation—Equipment $ 8,400
Notes Payable 20,000
Unearned Rent Revenue 9,300
Rent Revenue 60,000
Interest Expense –0–
Salaries and Wages Expense 14,000
An analysis of the accounts shows the following.
1. The equipment depreciates $250 per month.
2. One-third of the unearned rent was recognized as revenue during the Quarter.
3. Interest of $500 is accrued on the notes payable.
4. Supplies on hand total $850.
5. Insurance expires at the rate of $300 per month.
Instructions
Prepare the adjusting entries at March 31, assuming that adjusting entries are made quarterly. Additional accounts are Depreciation Expense, Insurance Expense, Interest Payable, and Supplies Expense.
The adjusting entries at March 31, assuming that adjusting entries are made quarter is: Debit Depreciation expense $750; Credit Accumulated depreciation - Equipment $750.
Journal entryMarch 31
Debit Depreciation expense $750
Credit Accumulated depreciation - Equipment $750
( $250 × 3 months)
(To record quarterly depreciation on equipment)
March 31
Debit Unearned rent revenue account $3,100
Credit Rent Revenue Account $3,100
( 1/3 × $9,300)
(To record rent revenue earned)
March 31
Debit Interest expense Account $500
Credit Interest payable account $500
(To record accrued interest expenses)
March 31
Debit Supplies expense account $1,950
Credit Supplies account $1,950
($2800 - $850)
(To record supplies consumed)
March 31
Debit Insurance expense account $900
Credit Prepaid insurance account $900
( $300 × 3 months)
(To record expired insurance for the quarter)
The entry to record the transaction is to debit Depreciation expense for the amount of $750, credit accumulated depreciation - Equipment of the amount of $750.
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A United Nations report shows the mean family income for Mexican migrants to the United States is $27,300 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 20 Mexican family units reveals a mean to be $28,500 with a sample standard deviation of $9,651. Does this information disagree with the United Nations report? Apply the 0.01 significance level.
a. State the null hypothesis and the alternate hypothesis.
b. State the decision rule for 0.01 significance level. (Negative amounts should be indicated by a minus sign. Round your answers to 3 decimal places.)
c. Compute the value of the test statistic. (Round your answer to 2 decimal places.)
d. Does this information disagree with the United Nations report?
A United Nations report shows the mean family income for Mexican migrants to the United States is $27,300 per year. A FLOC (Farm Labor Organizing Committee) evaluation of 20 Mexican family units reveals a mean to be $28,500 with a sample standard deviation of $9,651.
stated mean is 27,300 per year.
sample of 20 family units reveals a mean of 28,500 with a sample standard deviation of 9,651.
sample standard error = standard deviation of sample divided by square root of sample size.
sample standard error = 9,651 / sqrt(20) = 2158.029205.
since standard deviation is from sample rather than from population, use t-score rather than z-score.
degrees of freedom is equal to sample size minus 1 = 20 - 1 = 19.
t-score = (sample mean minus assumed population mean) / standard error.
t-score = (28,500 - 27,300) / 2158.029205 = .5560629102
alpha for .01 significance level for two sided distribution is the same as .005 significance level for one sided distribution.
if using t-score tables, you would look for critical t-score of .01 for two sided distribution or critical t-score of .005 for one sided distribution.
either one is for 19 degrees of freedom.
using the ti-84 plus scientific calculator, i looked for critical t-score of.005, since the calculator assumed one sided distribution table.
critical t-score is between -2.86 and 2.86 according to TI-84 Plus.
critical t-score table confirms this value is true at .01 alpha for two tailed distribution and at .005 alpha for 1 tailed distribution.
i'm reasonably certain this is accurate.
since the t-score is .5560629102, it is well within the confidence interval limits.
you would therefore reject the alternate hypothesis becauwse the results of the tewt are not significant.
they are significant if outside the limits and not significant if inside the limits.
your alternate hypothesis is that the scores are not equal to the assumed mean.
your null hypothesis is that they are equal to the assumed mean.
since the t-score is well within the confidence limits, this mean that the sample mean is most likely different from the assumed population mean due to random variation in sample means of size 20.
in order for you to reject the null hypothesis, the t-score would have had to be either less than -2.86 or greater than 2.86.
then you could have considered that the sample means difference from the assumed population mean would not have been likely to chance variations at the .01 significance level.
you can assume that the data does not contradict the report.
that means you aqcept H0.
at which rate is total utility increasing: a constant rate, a decreasing rate, or an increasing rate? how do you know?
The total utility is increasing at a decreasing rate.
As we consume more and more of the same good , utility from that good goes on decreasing. This phenomena shows us that total utility will increase but at a decreasing rate. Total utility is the total amount of satisfaction or fulfillment a consumer experiences as a result of using a particular good or service. Marginal utility, or the satisfaction a consumer has from consuming one more unit of an item or service, is sometimes contrasted with total utility. The law of diminishing marginal utility states that overall utility increases at a decreasing rate as marginal utility declines. The slope of the total utility curve is determined by marginal utility, which is the rate of change in total utility.
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From the following list, identify those that are likely to serve as source documents. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Sales ticket
Trial balance
Balance sheet
Telephone bill
Invoice from supplier
Company revenue account
Income statement
Bank statement
Prepaid insurance
From the following list, these are likely to serve as source documents.
Sales ticketsTelephone billinvoice from supplierBank statementA document is a written, drawn, presented, or memorialized illustration of thought, regularly the manifestation of non-fictional, in addition to fictional, content material. The word originates from the Latin Documentum, which denotes a "coaching" or "lesson": the verb doceō denotes "to teach".
In each subject, it is critical to decrease as a good deal hazard as feasible. Documentation is a amazing tool in protective in opposition to proceedings and complaints. Documentation assist ensure consent and expectancies. It allows to tell the narrative for selections made, and how your self or the patron replied to exceptional conditions.
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what is the purpose of completing a job application form or sending a resume and a cover letter?
Answer: a cover letter serves as your first impression to an employer and helps you to stand out from other applicants. A resume highlights qualifications for employment including education, experience, skills, and other relevant information.
What is motivation?
A. It is a combination of a belief about something and a feeling about
it that leads to a tendency to act.
B. It is the energy and desire to act in a certain way.
C. It is a set of beliefs, values, and actions shared by a group of
people.
D. It is a group that consumers use as a source of information.
Answer:
Try B I'm not exactly sure but I think it's B
what type of contract exists when at least one party has the option of canceling it?
Voidable contract exists when at least one party has the option of canceling it.
A contract is an agreement among events, developing mutual responsibilities that are enforceable by way of regulation. The primary factors required for the settlement to be a legally enforceable contract are: mutual assent, expressed by way of a legitimate provide and recognition; good enough attention; ability; and legality.
A agreement may be described as an agreement verified by way of law under segment 2(h) of the Indian settlement Act, I872. in step with section 2(e) of the Act, an settlement is “every promise and each set of guarantees forming consideration for each different.”
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in 2014, the action movie john wick made about $14.5 million in its opening weekend. in 2017, john wick: chapter 2 made about $30.5 million in its opening weekend. the consumer price index in 2014 was 236.7. if the consumer price index in 2017 was 245.1, how much did the first john wick movie make in 2017 dollars?
The first John Wick movie made $15 million in 2017 dollars.
Consumer Price Index: The consumer price index (CPI) tracks variations in the average price of products and services that a reference population buys, uses, or pays for consumption over time.
Consumer price index is a broad index that estimates price changes in a basket of products and services that is representative of consumer spending in an economy. The CPI estimating process involves some very precise calculations.
What does the CPI for 2022 look like?
The Consumer Price Index for All Urban Consumers grew 9.1% in the year that ended in June 2022.
If the CPI increases, it indicates that the average rate of change in price over time has increased. Over time, this results in modifications to the cost of living and income (presumably so that income is adjusted to meet a higher cost of living). Indexation is the name given to this procedure.
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Suppose three companies, Optimax, Protade, and Electrodrink, dominate the sports drink market. Optimax enjoys the largest market share. Protade, dissatisfied with its market share, begins offering its sports drink in a new container that, according to Protade, keeps the drink colder for a longer period of time.
This is an example of:
Answer:
Suppose three companies, Optimax, Megachug, and Thirstoid, dominate the sports drink market. Optimax enjoys the largest market share. Megachug dissatisfied with its market share, begins offering its sports drink in a new container that, according to Megachug, keeps the beverage colder for a longer period of time. This is an example of: Non-price competition Price leadership A price war
Explanation:
I hope this may help you
which of the following is included in an individual taxpayers federal gross income?
A. certain income from discharge of indebtedness
B. disaster relief payments
C. a federal income tax refund
D. interest on state and local municipal bonds
b) The customer asks, "How many brands of baseball gloves do you sell? Are there any the cost
less than $50?" You don't know the answer and need to check the supply room for inventory. It
takes you close to 10 minutes to find the answer. When you have the answer, the customer asks if you can put one on hold for her. Play out the entire conversation, including ending the call. (3
points)
When the customer asks for the price range of the product baseball gloves, which can be less than $50. So, the seller needs to check the supply room for inventory.
Inventory refers to all the goods, items, merchandise, and also the materials which are held by a business for selling in the market in order to earn a profit. So, inventory management can help the companies to identify which and how much stock to order and to order when.
While making a sale, if a customer asks for different price ranges and so if the seller does not remember such information, then the seller needs to check the supply room for inventory and then inform the customer about it.
Hence, inventory is an asset which is intended to be sold.
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Difference between financial and managerial accounting?
The main difference between financial and managerial accounting is that financial accounting is done for external stakeholders and managerial accounting is done for internal stakeholders.
How are financial and managerial accounting different?Financial accounting is often made for the use of the external stakeholders of a company including the public, the government, and analysts and investors. As a result, it has to follow the recommended accounting principles.
Managerial accounting on the other hand, is done for the benefit of internal stakeholders like management. It is used to make decisions on operations. It therefore does not need to follow generally recommended accounting principles which makes it different from financial accounting.
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