Answer:
Option (b) is correct.
Explanation:
Given that
Amount of merchandise purchased = $5,800
Credit terms = 2/10 and n/10
Using a perpetual system and gross method,
Therefore, the Journal entry is as follows:
On May 1,
Merchandise inventory A/c Dr. $5,800
To accounts payable $5,800
(To record the purchase of merchandise on account at May 1)
In zero accounting profit takes opportunity costs into account, whereas zero economic profit does not. If a firm has zero economic profits, they are able to have positive accounting profits. A zero accounting profit means that the revenue that is made is only covering explicit costs. A zero economic profit is normal when the total revenue and expenses equal zero.
Answer:
<u>Variety seeking </u>
Explanation:
Variety seeking buying behavior refers to consumer behavior wherein, a consumer seeks different kinds of goods and substitutes and prefers variety rather than sticking to one particular product.
Variety seeking consumers don't mind switching from one product to another since they tend to get bored quickly by consuming the same product time and again. Such consumers lack product loyalty and don't forge high involvement or association with any product.
Such behavior is prominent in case of products which don't have significant differences in the quality.
In the given case, Jason has been drinking a particular soda brand for a considerable length of time. Yet, when a new brand emerges and gains popularity, for no valid reason he wants to give it a try. This behavior is variety seeking behavior.
Answer:
depreciation expense is $235000
Explanation:
Given data
cost = $10,000,000
expenditures = $4,000,000
actual interest = $400,000
avoidable interest = $200,000
salvage value = $800,000
time = 40 year
to find out
depreciation expense
solution
we know that for 40 year
so depreciation expense in the 1st year is express as that given below
depreciation = cost + interest - salvage value / time
put here all value we get depreciation
depreciation = 10000000 + 200000 - 800000 / 40
depreciation = 9400000 / 40
depreciation = 235000
so depreciation expense is $235000
Answer:
The answer is: The overhead variance was $1,700 and it was overapplied
Explanation:
Victryl's estimated overhead cost per labor hour was:
$700,000 / 35,000 = $20 per labor hour
If during February, Victryl had 5,000 direct labor hours, then its estimated cost should have been: $20 x 5,000 = $100,000 estimated overhead cost
The actual overhead cost was $98,300, which is $1,700 less than the estimated cost.
