Answer:
a. the buyer’s consumer surplus for that good is maximized.
Explanation:
The consumer will purchase up to the moment at whose preference price matches the market price.
Because of the diminished return theory, the following unit (k+1) will have a lower benefit to the consumer thus, it will have purchased only if the price is lower. Therefore, it will not purchase as the market price is the same as the previous unit but the consumer benefit is lower.
Answer- True.
<span>In agreement with lots of consumer advocates one should
not furnish his/her apartment by going to a rent to own company, this is
because the budget of renting to own is much more costly than the cost of
buying. The finance charges strained out after a while can at times make the
product cost nearly twice or more. </span>
Answer: Managerial Accounting
Explanation:
Managerial accounting refers to the preparation of reports and analysis from the company's accounting information to enable managers decide the ways to go with a company.
This type of accounting is for internal use and so is not subject to the kind of scrutiny that financial accounting gets from accounting bodies such as IASB and the FASB.
An example would be the Supply Manager may ask for a report to be made showing them the increase in supply costs for the past decade from their preferred supplier to enable them make a decision on if to find a new supplier.
Answer:
c. the same amount of interest expense being recognized over the life of the bonds
Explanation:
The interest expense will be the cash outlay plus discount on bond payable or cash outlay less premium on bonds payable.
If the method total interest expense are different then company's will always chose one over the other to decrease their income taxes
Also, accounting should represent reality thus, the method to recognize interest should give the same result at the end of their life.
Answer:
a. 598 units
b. $897
c. $898
Explanation:
a. The computation of the economic order quantity is shown below:
= 598 units
b. The average inventory would equal to
= Economic order quantity ÷ 2
= 598 units ÷ 2
= 299 units
Carrying cost = average inventory × carrying cost per unit
= 299 units × $3
= $897
c. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $19,900 ÷ 598 units
= 33.28 orders
Ordering cost = Number of orders × ordering cost per order
= 33.28 orders × $27
= $898
