Answer:
d. We should accept the offer because it would increase our net operating income
Explanation:
A differential analysis only includes relevant costs. This means that only costs that are affected by the special order are considered. In this case, variable costs are the only relevant costs, since fixed costs will occur regardless of the acceptance or rejection of the special order. This special order will increase the company's operating profits by ($65 - $15) x 100 = $5,000
Answer:
a. July 31
Explanation:
According to the revenue recognition principle, the revenue is recorded when the revenue is realized or earned not when the cash is received. There is no effect on cash receipt in this principle
Whether cash is received or not, the revenue is recognized when the service is provided to a customer
According to the given scenario, the service is performed so it is on July 31
