The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.
<h3>What is the law of
diminishing marginal returns?</h3>
The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).
In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.
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Answer:
e. Merchandise Inventory Debit 19,982
Accounts Payable Credit 19,982
Explanation:
In a perpetual inventory system, the inventory account is used to record purchases and cost of goods sold. Inventory counts are conducted on periodic basis and the inventory quantities are matched with inventory records and any differences are adjusted.
Since Morgan Inc. also uses the net method to record purchases, any discounts allowed are considered to have been received.
In this question, the terms are 3/10, n/30 which means that a 3 % discount is allowed on payment within 10 days and if not then the payment has to be done within 30 days.
Considering a 3 % discount on the purchase value of $ 20,600, the entry to be recorded shall be at a value of $ 19,608 (20,600-618)
The register is the answer
Answer:
$118,209
Explanation:
Weighted average costing adds the value of beginning inventory in the period cost to calculate the average cost per unit.
It is assumed that unit in work in process at the end of the period is incomplete in every aspect.
According to this method the equivalent units formula is as follow
Equivalent Units = Unit completed and transferred to Finished goods + Units in Work in Process x Completion percentage
Equivalent Units = 5,000 + 600 x 50% = 5,300 units
Total Cost = ( 5,300 x $10 ) + (38,280 + 30,620) x 5,300/5600 = $53,000 + $65,209 = $118,209
Note:
There is some inconsistency between the material cost and the total units. Material cost is calculated using 1,600 units and total numbers of units are 5,600. I took 5,600 units and calculated the costs.
Answer:
The type of business risk that poses the greatest threat to a company's overall success is Competitive Risk.
Explanation:
Business risk threatens a company's ability to meet its target or achieve its financial goals. They could be caused by what you have control of such as operations and what you cannot control such as natural disaster and unfavorable government policy.
However, the greatest threat to a company's overall success is competitive risk.
Competitive risk is the chance that competitive forces will prevent you from achieving your overall business goal. It is often associated with the risk of declining business revenue or margins due to the actions of a competitor.
