Economics, Accounting & Business: Post your doubts here!

[Asheerah angel]

1. why are the wages and salaries of some workers higher than others(15)
2. Discuss whether a govt should attempt to set a minimum wage(10) i need help its urgent with that questions guys???

 

[ktc]

Yes in the business book there are 3 limitations, i read them again and understood them, please tell me what this means, explain it to me

Cost based pricing:
The basic idea is that firms will assess their costs of producing or supplying each unit, and then add an amount on top of the calculated cost.

What does this mean?

this is from the chapter: marketing mix: product and price.

Page: 302 business book cambridge alevel by peter stimspon and alaistar

Cost based pricing involves calculating the unit cost of the product and adding an amount or fixed percentage to the cost to make a profit.

can anyone please explain to me what target pricing is?

thanks

Target pricing is a cost based pricing method in which a fixed sum or a percentage of the total cost is added (as income or profit) to the cost of the product to arrive at its selling price.

Example,

The business produces total output of 50,000 units. The production incurred a total cost of $100,000

The expected rate of return on sales was 10%

The business will need to set a selling price which will recover the total cost and make a profit.

Selling price = Total revenue/total output

Total cost = $500,000

Expected return on sales = 10% of $500,000
= $50,000

Therefore, total revenue to be made = $500,000 + $50,000
= $550,000

And selling price = $550,000/50,000
= $11

By selling 50,000 units at $11 each, the business will be able to recover $500,000 and make a profit of $50,000

I was just wondering, if i need to study this topic for the exam: Pricing decisions - some additional issues On page; 306

book: Cambridge International As and Alevel Business Studies Second Edition by Peter Stimpson and Alastair Farquharson

You might need to apply it to case studies in paper 3.

Better be safe than sorry.

Guys can someone please explain me this.

Its from the chapter 17: marketing mix: promotion and place

Factors that determine firms choosing advertising medias: the message to be communicated

Written forms of communication are likely to be ost effective for giving detailed information about a product that needs to be referred to more than once by the potential consumers. however, if an image-creating advert is planned, perhaps for a new range of clothes or sports equipment than a dynamic and colourful TV advert is possibly more effective

I seriously dont get whats written here, and i dont get the main idea that the author is trying to establish.

Please explain thoroughly in simple words. Thankyou.

This can be found on page: 317 of the As and Alevel cambridge business studies book by peter stimpson and alasitar.

An advertisement is successful if the message communicated to the consumer is accurate, clear and unambiguous.

Advertisements that convey lots of information about the product are usually very lengthy. And lengthy ads can be broadcasted through written media such as the internet; E - mails.

This makes it economical and practical for both the business and the consumer.

The business can provide as much as information about the product and any consumer can go over the ad as many times as s/he wants. Recalling the information and printing it becomes possible.

Another factor that influences the success of an advertisement is its ability to attract consumers.
The more 'live', vibrant, colorful and eye catchy an ad is, the easier it is to grab the attention of consumers.

Common choice of media in this case is TV.

 

[ktc]

Guys whats the purpose of business activity?

Is it to add value to resources such as raw materials thus making them more desirable to the final purchaser? Wouldnt this be the meaning of business activity as oppose to the purpose ?Let me know thanks

Business activity is one of the reasons why you, I and the rest of the world are surviving today.

As human beings, we all have our needs (basic essential items for survival) and wants (iPhone, iPad, make up, cosmetics, X Box 360, Assassin's creed, Mass Effect, COD Black Opps, Barbie...etc)

Businesses use factors of production/resources, such as land, labour, capital and enterprise to produce goods and services that satisfy your needs, the world's needs and my wants needs.

guys, can someone please explain me the advantages of this point for capital-intensive (Page: 387)

- Advantages:
The substantial opportunities for scale economies and unit-cost reductions offered by large-scale capital utilisation make this the first choice for many business managers.

I dont get this at all. Explain please.

Capital intensive involves the heavy use of capital equipment like machines, plants, computers, etc. to aid in the production of goods.

Naturally, machines perform faster than human beings, and the total output produced is higher than in labour intensive businesses.

The average cost of production (cost per unit) then starts falling due to an increase in the scale of operation, leading to economies of scale.

 

[Mess]

Partnership capitals are $60 000 for X and $90 000 for Y. The partnership agreement provides for
interest on capitals at 10 % per annum, but makes no other financial provisions.
Profits for the current year total $75 000.
How will the total profits be divided between the partners?

A 30 000 45 000
B 36 000 39 000
C 37 500 37 500
D 39 000 36 000

According to MS the answer is B, but ER says: "If a partnership agreement allows interest on capitals but makes no other financial provisions,
then under the Partnership Act the balance of profits is shared equally by the partners."

Please explain. Thank you.

 

[Asheerah angel]

can i have some past papers questions on limiting factor and break even analysis?

 

[shanky631]

Partnership capitals are $60 000 for X and $90 000 for Y. The partnership agreement provides for
interest on capitals at 10 % per annum, but makes no other financial provisions.
Profits for the current year total $75 000.
How will the total profits be divided between the partners?

A 30 000 45 000
B 36 000 39 000
C 37 500 37 500
D 39 000 36 000

According to MS the answer is B, but ER says: "If a partnership agreement allows interest on capitals but makes no other financial provisions,
then under the Partnership Act the balance of profits is shared equally by the partners."

Please explain. Thank you.

when they say total profits, it means share of profits and interest on capital. so if profit is 75000, deduct interest on capital 15000 (6000+9000). you will get 60000 as distribuable profit. now u have to divide it equally in the absence of info.. so for X (30000+6000) and Y (30000+9000).. hence the answer is B so both Ms and Examiner report is correct.

 

[meena khetan]

Can some1 please send me the link of as-level papers of year 2012 oct/nov ???

 

[Waleed007]

Can some1 please send me the link of as-level papers of year 2012 oct/nov ???

Here: http://www.mediafire.com/?rgxkvs1js32r9

 

[simple]

someone help for bussines pls.
write an essay plan title to what extend a sucessful entrepreneurs depends on luck rather than personal qualities and skills. how to write it.

 

[VelaneDeBeaute]

1. why are the wages and salaries of some workers higher than others(15)
2. Discuss whether a govt should attempt to set a minimum wage(10) i need help its urgent with that questions guys???

Read Labour Market from 'The Price System'? These questions require no elaboration or anything, simply jot down the concepts.
Anyway, The first question needs you to dig into the phenomena of Economic Rent and Transfer earnings. You need to demonstrate that people, like entertainers, possess rare skills hence are highly paid. Also, with time, the experience they earn makes their skills more valuable hence they're paid accordingly. Others, such as laborers, have a huge supply and are usually unqualified. The key word is 'Why?' so you just need to explain the reasons for the wages and salaries being higher for few individuals.
The second questions demands of you a full-fledged discussion. Present, first of all, how the minimum wage setting takes place (include the diagram too if you've learnt that one) and then carry on with the good and bad aspects of it. Will there be any unemployment? Will the Supply of Workers exceed the Demand for labor? How will the unemployed survive then? Will government be burdened, and expenditures cut down? Do give a conclusion at the end because questions as such carry a mark for concluding your discussion.

 

[cool Asviva]

please someone explain me this mcq.

which factor determines the purchasing power parity of a currancy?
A. relative costs of living
B. relative rates of exchange
C. the volume of trade creation
D. the visible balance of payment.

ANSWER: A
thankss in advance

 

[zainabkhann]

Guys can someone tell me if As students need to make notes on 'Evaluation of the costing approaches' from page: 523. It does not have the A2 bar line on the side so im assuming that we have to study about that? Please let me know.

chapter: Costs

 

[zainabkhann]

Can someone please explain me the 4 limitations for break even analysis, i cant seem to understand the 4 points listed on page: 513

 

[Arpit Farkya]

Doubt in economics 9708 s11_qp_12 !! Please check out question no. 20 , 24, 25. i need help in them. what is the logic behind their answers. please help.!

 

[MnMz]

Doubt in economics 9708 s11_qp_12 !! Please check out question no. 20 , 24, 25. i need help in them. what is the logic behind their answers. please help.!

20. Terms of trade(TOT) = (index of export/index of import)%
In the current year, index of export is 120.
this gives, index of import = 120/(150/100)=80
Since base year, the price of imports decreased by 20%.
Ans: -20% , B

24. A falling rate of inflation will still cause an increase in the cost of living. (A)

25. B.O.T will improve because the exports of the UK will increase. However, the current balance remains uncertain because it depends whether the Japanese send profit back home or no. (Ans. B)

 

[MnMz]

Can someone please explain me the 4 limitations for break even analysis, i cant seem to understand the 4 points listed on page: 513

1. Some costs are not easily classified as or fixed or variable. (like indirect costs)

2. Many fixed costs are fixed only within certain parameters or limits and may increase with the level of activity; they are 'stepped costs' For example, it may be possible to increase the no. of units produced only if additional machines are purchased, and that will increase the total depreciation. If production is increased still further and more machines have to be purchase, it may be necessary to lease more factory space and the rent will increase. Fixed costs (like straight line dep. and rent) then become 'stepped costs'.

3.If sales revenue and costs are represented by straight lines they may be misleading. Maximum sales revenue may only be achieved if customers are given attractive discounts, while variable costs may be affected by quantity discounts when output is increased.
These factors would be more accurately represented on charts by curves than straight lines.

P.S.
The charts may mislead people whose accounting knowledge is limited but trained accountants will know when to make allowances for the chats' limitations.


If you still don't get it.
Tell me.

 

[MnMz]

Economics: AS level
MCQ no. 1, 6 and 9.

Did you get the answers for those?? or do you still need them?

 

[mrgreedywolf]

Hi everyone,

I am giving some reference links for A2 accounting.
Chapter: International Accounting Standards

http://www.boeckler.de/pdf/mbf_ias_english_summaries_standards.pdf
http://www.pwc.com.tr/en_TR/tr/assets/ins-sol/publ/iffs.pdf
http://en.wikipedia.org/wiki/List_of_International_Financial_Reporting_Standards
http://www.ey.com/Publication/vwLUA...dards and Interpretations_March_FINAL WEB.pdf

I haven't completely read through all of them and these are for reference only. We only need to go through those relevant to our syllabus.

 

[Arpit Farkya]

20. Terms of trade(TOT) = (index of export/index of import)%
In the current year, index of export is 120.
this gives, index of import = 120/(150/100)=80
Since base year, the price of imports decreased by 20%.
Ans: -20% , B

24. A falling rate of inflation will still cause an increase in the cost of living. (A)

25. B.O.T will improve because the exports of the UK will increase. However, the current balance remains uncertain because it depends whether the Japanese send profit back home or no. (Ans. B)

The answer for qno. 24 is (A), but I didn't understand the logic behind it. As the inflation rate falls from 10% to 6% that means the general price level falls hence why the answer says that the cost of living would increase? according to the law the cost of living should also fall. please help me by explaining it.

 

[Arpit Farkya]

1. why are the wages and salaries of some workers higher than others(15)
2. Discuss whether a govt should attempt to set a minimum wage(10) i need help its urgent with that questions guys???

1. the wages and salaries of some workers could be higher due to their unique skills , work experience. This usually happens in the case of skilled workers.