Answer:
The bridge 's owner has a natural monopoly, and the marginal production cost (letting another car drive through it) is close to nil.
Explanation:
Since building several bridges to compete is inefficient, but building one bridge at a lower average cost to customers would be effective. If the private monopolist builds the bridge it can charge customers exceptionally high prices.
There is a high fixed cost involved with constructing a bridge. Hence constructing a bridge is a mere privilege. Furthermore, there is no extra cost to allow another car to cross the bridge. It means that the marginal cost is zero or closer.
Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
Answer:
forced distribution
Explanation:
Based on the rest of the sentence it can be said that the missing term is forced distribution. This is a system that requires managers to evaluate each individual and rank them typically into one of three categories. These categories are excellent, good, and poor and allow managers to indicate if the employee should be terminated, is doing good, or is in-line for promotion as indicated in the graph below. This term is also known as the vitality curve or bell curve.
Answer:
Total Material cost = $507,000
Explanation:
Material budget shows the total budgeted material cost for a specific period.
Sleep master, inc.
Direct Material Budget
December 31, 2013
Budgeted production units 57,000
<u>yards required per comforter × 6</u>
Materials needed for production = 342,000 yards
<u>Add: Ending Material Inventory = 27,000 yards</u>
Total Material units required = 369,000 yards
<u>Less: Beginning Materials = (31,000) yards</u>
Material used = 338,000 yards
<u>Cost per yard × $1.50</u>
Total Material cost = $507,000
