Answer:
The correct option is (c)
Explanation:
Return on investment measures the attractiveness with respect to an investment. It evaluates the efficiency of a particular investment as compared to other investment opportunities.
It is computed by subtracting cost of investment from current value and divide the result by the cost.
In this case, buyer should estimate the return on investment in purchasing larger quantity to get discount and compare it with other investment opportunities. If it offers higher returns, then the buyer should go for this.
Answer:
The correct answer is letter "A": Are amounts owed to suppliers for products and/or services purchased on credit.
Explanation:
Accounts Payable is the amount of the total invoices currently awaiting payment by the company. These invoices are from suppliers of products and services that have recently been delivered. They are usually due within 15, 30 or 45 days after receiving the invoice from the vendor.
Answer:
A higher operating income will result under absorption costing
Explanation:
If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing than under variable costing.
Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.
Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.
<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>
<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>
<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>
Formalist <span>criticism focuses on the political implications of a work of art.
There are 4 types of art criticism
1) Formalist Criticism
2) Ideological Criticism
3) Structuralist-based Criticism
4) Feminist Criticism
When you are using formalist criticism, you are studying the text without taking any outside influence into account.</span>
Answer:
b. $75,000
Explanation:
Depreciable cost is the amount of an asset's cost that will be depreciated. Depreciable cost is calculated by using purchase and installation cost of a fixed asset, minus its estimated salvage value at the end of its useful life.
Depreciable cost = Total asset cost - salvage value = $90,000 - $15,000 = $75,000
The company then uses a depreciation method, such as the straight-line method, to calculate depreciation expense of the equipment.
Example:
Annual Depreciation expense = $75,000/6 = $12,500
