Answer: The correct answer is "D. all of these are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.".
Explanation: The ABC system obtains enough information to understand what the true inducers of costs are and act on them.
This system is based on the fact that the products consume activities and the activities resources (costs). Thus, if you have information on what each activity costs and what activities are necessary for the generation of each product, then you can know how much each product costs from the activities that constitute it, and so you can make an evaluation of the ability to generate value of these activities and an analysis of the processes to eliminate those unnecessary activities that do not add value to the product.
Answer:
Answer explained below
Explanation:
decrease in consumer surplus = 0.5(initial number of bottles - final number)*(final price-initial price) + (final price-initial price)*(final number)
where initial number of bottles = 25
final number of bottles = 15
initial price = $390
final price = $390
substituting these values, we have
- decrease in consumer surplus = 0.5(25-15)(450-390) + (450-390)15 = 1200
Consumer surplus decreases by 1200
- Consumers will buy the good as long as marginal benefit is greater than or equal price.
Thus quantity demanded will be 2 from the table
Consumer surplus = 240- market price = 240 -220= 20
Consumers total benefit = 220*quantity demanded = 220*2= 440
Answer:
The correct answer is True.
Explanation:
The Gordon growth model is a method of valuing a company's share price, using constant growth and discounting the value of future dividends today. Gordon Growth is often known by its English name.
It is a dividend discount model that assumes that the growths that the company will experience are constant. It is based on the theory that the price of a share should be equal to the price of the dividends that the company is going to pay, discounted to its net present value.
If the share price in the market is less than the result obtained by the discounted dividend model, the share is undervalued and therefore, it is recommended to buy. If, on the other hand, the market price is higher than that of the model, it is understood that the share price is too high.
Answer:
Please see explanation
Explanation:
The following journal entry shall be recorded in the accounts of Weld-Rite Company in respect of salaries expense to be accrued as at December 31:
Debit Credit
Salaries expense $3,600
(6,000/5*3)
Salaries payable $3,600
