The best time to start a business is when you have the time to devote your attention to it.
Answer:
Costs that have already been incurred
Explanation:
Sunk costs are costs already incurred which are irrecoverable. These costs will stay the same irrespective of business actions and are also not considered for business decision in the future as they are deemed irrelevant .
If an organization wants to decide on business actions, they make use of relevant costs as they are cost meant for the future and will still be incurred. Revenue and cost that varies are only considered by organization to make a decision.
Example of sunk cost is money spent on rent. This money incurred cannot be recovered once it has been paid.
Answer:
a. The property is sold on credit.
<em>The amount realized is the cash received at the date of sale and the cash that will be received in future when the credit is settled. </em>
b. A mortgage on the property is assumed by the buyer.
<em><u>The amount realized increases</u></em><em> because the seller will see their debt reduced and still receive cash from the buyer for the purchase of the property. </em>
c. A mortgage on the property is assumed by the seller.
<em><u>The amount realized decreases</u></em><em> because the realized amount will have to be net of the mortgage that the seller now has to pay. </em>
d. The buyer acquires the property subject to a mortgage of the seller.
<em><u>Amount realized increases </u></em><em>as the buyer will become the one making mortgage payments instead of the seller which effectively means that the seller gets the realized value net of debt. </em>
e. Stock that has a basis to the purchaser of $6,000 and a fair market value of $10,000 is received by the seller as part of the consideration.
<em><u>Realized value increases to $10,000</u></em><em> because that is the fair value of the stock when exchange for the property. </em>
Answer:
$22,000F
Explanation:
Calculation to determine what The activity variance for revenue for October would have been closest to:
Activity variance for revenue= (5,500*19) - (5,500*23)
Activity variance for revenue=$104,500-$126,500
Activity variance for travel expense =$ 22000 F
Therefore The activity variance for revenue for October would have been closest to:$22,000 F
Answer:
Franchises.
Explanation:
A franchise is formed when a third party is given the right to market products using the brand name of a parent company. There is usually an agreement between the parent company and the third party on profit sharing from the franchise.
In this scenario Keith wants to try a brand recognition of a national chain, but he wants to stay in his local area and be the owner of the shop.
The best option is to form a franchise where he can use the national brand to grow his business locally.
