Answer:
1. An increase in the cost of some goods such as escalating gasoline prices.
Explanation:
The standard of living refer to a comfort level, the goods, and the material, necessities and wants that are available to a person
In case when there is a decline in standard of living so it is due to the increased in price as it reduced the purchasing power of the consumer
If the price of the goods increased, then the quantity demanded decreased as per the law of demand
Therefore in the given case, the option A is correct
Answer:
Depreciation expense for 2021 will be $14700
Explanation:
The straight line method charges a constant depreciation expense each period throughout the useful life of the asset. The depreciation expense per period under the straight line method is calculated as follows,
Depreciation expense = (Cost - Residual value) / Useful life of the asset
Depreciation expense = (81000 - 7500) / 5
Depreciation expense = $14700
Answer:
Option (b) is correct.
Explanation:
Expected production = 20,000 labor hours
Actual production = 18,800 labor hours
Budgeted overhead = $400,000
Actual overhead = $384,000
= $20 per hour
Answer:
D) Alternative evaluation
Explanation:
In the alternative evaluation stage, the customer compares several options to buy the best one according to his or her principles, views and tastes.
Ideally, this stage should occur before making the purchase, however, this is not guaranteed because a customer can always find something more preferable after the purchase has been completed.
Answer:
C. Debit Allowance for Doubtful Accounts and credit Accounts Receivable
Explanation:
To write-off an account under the allowance method, the company will decrease both, the allowance and the receivables. This will leave the net receivable at the same value before the write-off. It will have no impact on the net income as the account used are an asset account and contra-asset account.
The company will never write-off against bad debt expense under the allowance method. That is done in the direct method.
