Answer:
Transaction cost
Explanation:
Transaction cost is the cost that is typically in money or time format. It is the cost involved in the context of time or money when a decision is made or an agreement has been reached.
So according to the given situation, there is an excessive amount of time or money spent on parties so that it could be reached to an agreement
Therefore it represents the transaction cost
Answer:
public sector is the answer because it's right
Answer:
$103,400
Explanation:
Does Manuel have any certainties that Nolan will purchase more than 30,000 units during the year? Apparently, according to historic sales, Nolan purchases at least 40,000 units per year, so Manuel should consider that Nolan will again purchase a similar amount this year and therefore, will be entitled to a rebate.
Another issue that must be considered is that 30,000 units / 4 quarters = 7,500 units per quarter, and Nolan clearly purchased more than that.
A rebate is not a discount, it happens when the seller offers a certain amount of goods to a buyer without cost because the buyer purchased more than an specific amount. It is basically an incentive or prize that Manuel gives Nolan for being a good client.
Manuel should recognize $110,000 x (1 - 6%) = $103,400 in revenues
Answer:
Explanation:
Sales revenue to be reported - $1,000,000
Warranty expense - $40,000
Unearned warranty revenue - $12,000
Cash = 1,000,000+12,000 = $1,012,000
Warranty liability - $40,000
