• A competitive firm has a u-shaped average cost curve whereas a monopolist does not. • A monopolist can influence market price whereas a perfectly competitive firm cannot. • There are many substitutes for a monopolist’s product whereas there are no substitutes for a competitive firm’s product. Want help? Click to download ECO 365 5).
* Milestone payment revenue should then be spread out on a pro rata basis as products are distributed under the license and distribution agreement. Differences under IFRS? * Since the agreement has just one deliverable, and the agreements went into effect at the same, no material difference exists when comparing GAAP and IFRS. * However, under IFRS, one could record revenue up-front, mainly from the milestone
(McConnell., 2011) This total does not take include the cost of producing the product. The calculation of the TR is accomplished by multiplying the number of units sold time the sales price. * TR = Sales Price * Quantity Sold Total Cost (TC): The sum of fixed cost and variable cost at each level of output. (McConnell., 2011) * TC = TFC + TVC (Total cost = Total Fixed Cost + Total Variable
However, it does not specify when to recognize or how to measure the items that make up comprehensive income. In reporting comprehensive income, companies are required to use a gross disclosure technique for classifications related to items of other comprehensive income other than minimum pension liability adjustments. For those classifications, reclassification adjustments must be disclosed separate from other changes in the balances of those items so that the total change is disclosed as two amounts.
Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Do not round your interim calculations. Round your cost per unit answers to 2 decimal places. Omit the "$" sign in your response.) Reported Income Statement (1,600 units) Manufacturing Variance Marketing and Administrative Variance Sales Price variance (b) Flexible Budget (a units) Sales Activity
First, according to the ASC 605-25-25-6, “a delivered item or items that do not qualify as a separate unit of accounting within the arrangement shall be determined for those combined deliverables as a single unit of accounting.” If the Power starterpack is not a separate deliverable, it shall be considered as a single unit of accounting, which is not a separate unit of accounting. Power starterpack is sold as a bundle, and only one stream of revenue. That means the activation card has to be sold as combination with service, and only recognize $200 as revenue. 2. The activation card is a separate deliverable and a separate unit of accounting.
ECON 1312 Homework Assignment # 2 Chapter 4 1. Why do we need a units-free measure of the responsiveness of the quantity demanded of a good or service to a change in its price? Answer: To measure or to compare the demand of the two unrelated goods or services. 2. Define the price elasticity of demand and show how it is calculated.
State separately the amount of (a) cost of tangible goods sold, (b) operating expenses of public utilities or others, (c) expenses applicable to rental income, (d) cost of services, and (e) expenses applicable to other revenues. FASB ASC 225-10-S99-8 covers the reporting of the depreciation: If cost of sales or operating expenses exclude charges for depreciation, depletion and amortization of property, plant and equipment, the description of the line item should read somewhat as follows: "Cost of goods sold (exclusive of items shown separately below)" or "Cost of goods sold (exclusive of depreciation shown separately below)." To avoid placing undue emphasis on "cash flow," depreciation, depletion and
Reducing price will increase sales volume at least for short time but it not good in building the brand and increasing the brand market share as one the analyst has clearly stated that a price sensitive consumer will easily shift to another brand which offers a lower price than La Shampoo, thus rendering the entire exercise fertile. Another positive out come from Eric’s solution is that the brand can buy time for Caroline to think of a better decision. Beth’s solution is to create new advertisement campaign. This solution seemed better to improve sales but there are still no specific changes that suggested to repositioning La Shampoo on the consumers’ minds. Taking into consideration
The strongest competitive advantage is a strategy that that cannot be imitated by other companies. Competitive advantage can be also viewed as any activity that creates superior value above its rivals. A company wants the gap between perceived value and cost of the product to be greater than the competition. Michael Porter defines three generic strategies that firm's may use to gain competitive advantage: cost leadership, differentiation, and focus. A firm utilizing a cost leadership strategy seeks to be the low-cost producer relative to its competitors.