Answer:
c. allowing customers to pay with credit cards or on credit, makes it easier for them to buy, and it also attracts new customers
Explanation:
What is credit?
Credit is the amount you can borrow for a certain time.
Sales on credit means that the sale is done without the use of cash with the conditions given for a certain time limit.
Now purchasing without cash is a facility every customer enjoys. The basic objective of sales on credit is to increase the purchasing power of customer thus attracting more customers to the specific products.
Choice c is the best option.
Choice a is incorrect because cash flows involve cash as well.
Choice b is also incorrect because matching principle is not a market strategy . It is an accounting method.
The company needs increase in sales, which involves a marketing strategy.
In the matching principle the revenues are matched with expenses therefore credit sales ( revenue) will be matched with the expenses incurred to be able to make sales.
Choice d is incorrect credit sales increase accounts receivable not accounts payable.
Answer:
What is driving Anne's and Adam's decisions?
Opportunity cost
Explanation:
The opportunity cost is the amount of benefits expressed in monetary terms of picking one alternative over the other. It is an economical aspect as opposed to an accounting aspect. It is mostly beneficial to business people or investors who have a variety of business opportunities that requires an investment. Since they are not always considered in financial reports, they are often an unnoticed and may not be considered in most cases. This can cause the occurrence of missed opportunities that might have been more beneficial than the option chosen. The opportunity cost can be calculated using the formula below;
O.C=F.O-C.O
where;
O.C=opportunity cost
F.O=return on best foregone option
C.O=return on chosen option
In our case, Anne had to consider either continuing to sell the same number of dresses or increasing her production to capitalize on the profit margins. She chose to increase her production. Adam also had two alternatives; to utilize the opportunity of buying furniture at a lower cost down the street within two days before the offer ends or buying furniture expensively after the end of the offer. Adam chose to utilize the offer and bought the furniture a half-price sale.
Answer:Total general and administrative expenses budget per month =$10,250
Explanation:
Total general and administrative expenses are the compulsory costs to ensure that a company's day to day operations is maintained whether or not the company is making profit.
General and administrative expenses includes Rent, Utility bills, insurance wages and benefits, depreciation of office furnitures, Office supplies and are regarded as operating expenses and therefore interest paid on a bank loan is not an operating expenses but a financing activities and will not be considered as an administrative expense.
Administrative expenses= administrative Salaries+Other cash administrative expenses+Depreciation
=$5,600+$3,000+$1,650
=$10,250
Answer:
Okay
1. Sell more
2. rise
3. Once they sell half of there stock, so they have money to make more.
Explanation:
