Answer:
Total revenue rises immedately after the fare increase, since demand over the immediate period is price Inelastic.
Explanation:
Elasticity in the price demand measures the porcentage in the change of the quantity demanded as a response to a change in the price. If the elasticity is more than 0 but less than 1 it means that the price demand is inelastic. So when the price is rised the quantity demand will decrease in a minor porcentage than the rise in the price so it will represent a bigger revenue.
Answer:C
Explanation: Since you need 2.5 Canadian Dollars, .89 = to 1. Therefore 2.5 times the .89 equals to 2.225, or rounding up to 2.23
Answer:
b. $307,000
Explanation:
Costs to be accounted in cost reconciliation report = Opening balance of work in process + Cost of production added during the month
= $24,000 + $283,000
= $307,000
Cost reconciliation report shows what costs need to be accounted for in a month and the manner in which they are actually accounted for.
It is a step in preparation of production report which shows how beginning work in process inventory and the costs which are added to production during the period are recorded.
Hence in cost reconciliation report pertaining to the month of Aug, opening work in process and costs added to production during the month are recorded.
Answer:
e) Credit to Revenue
Explanation:
The services provided to customers will be an increase of revenue and an increase in revenues is a credit transaction.
Since the question does not mention that the services were billed therefore the accounts receivable will not be increased till it is billed and thus option a) is not applicable.
The other options are not relevant since there is no cash collection involved, and no liabilities involved.
