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2 years ago

The sales returns and sales allowances accounts are classified as

1 answer:

6 0

These two Sales Revenue accounts (the sales returns and sales allowances) are classified as Contra accounts. They have debit balances unlike the Sales Revenue account.

The purpose of their creation is to maintain the Sales Revenue account at its gross amount for measure purposes.

The Sales Returns account is the General Ledger account for recording goods returned by customers. It reduces the Accounts Receivable account, which is credited with Sales Returns.

The Sales Allowances account records allowances granted to customers for defective goods, which reduce their balances.

Thus, the two sales accounts are contra accounts and they have debit balances.

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The short run is defined as A. a period of time of five years or less. B. the period of time in which all factors of production

Kryger [21]

Answer:

C. the period of time in which at least one factor of production is fixed.

Explanation:

The short-run is a condition, were some controls and market are not in fair equilibrium, some factors like the variables and other that are foxed have limited entry or exit to the industry.

In the macroeconomics a long run is a time when the general price, and contractual wage rates, along with the expectations are adjusted entirely to the states of the economy. and this contrast to the short-run where the variable is not fully fixed or adjusted.

The short-run for a firm will increase the production of the marginal costs is less than the marginal revenue. The transition from the short to the long-run market equilibrium may be done on considering the supply and demands.

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3 years ago

Anita’s take-home pay is $2200 a month. she spends 14% of her take-home pay on groceries. How much is Anita’s monthly grocery bi

irinina [24]

14% of $2200 = $308 is the amount of Anita's monthly grocery bill.

7 0

3 years ago

Variable Costing

mart [117]

Answer:

a. $197,600

b. $163,400

c. $108,600

Explanation:

a. Manufacturing margin = Sales - Variable cost of goods sold

= $380,000 - $182,000

= $197,600

b. Contribution margin = Manufacturing margin - Variable selling and administrative expenses

= $197,600 - $34,200

= $163,400

c. Income from operations = Contribution margin - Fixed manufacturing costs - Fixed selling and administrative expenses

= $163,400 - $57,000 - $2,800

= $108,600

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3 years ago

Waterway has a standard of 2 hours of labor per unit, at $12 per hour. In producing 3800 units, Waterway used 7350 hours of labo

Vadim26 [7]

Answer:

Direct labor time (efficiency) variance= $3,000 favorable

Explanation:

Giving the following information:

Standard= 2 hours of labor per unit, at $12 per hour.

In producing 3800 units, Waterway used 7350 hours of labor.

To calculate the direct labor quantity variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 2*3,800= 7,600 hours

Direct labor time (efficiency) variance= (7,600 - 7,350)*12

Direct labor time (efficiency) variance= $3,000 favorable

7 0

3 years ago

True or False: Suppose a firm's CFO thinks that an externality is present in a project, but that it cannot be quantified with an

GarryVolchara [31]

Answer:

False

Explanation:

Suppose a firm's CFO thinks that an externality is present in a project, but that it cannot be quantified with any precision ¾ estimates of its effect would really just be guesses. In this case, the externality should be ignored ¾ i.e., not considered at all ¾ because if it were considered it would make the analysis appear more precise than it really is. This is a false statement.

5 0

3 years ago

Read 2 more answers