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3 years ago

When producers do not have to pay the full cost of producing a product, they tend to?

1 answer:

6 0

When producers do not have to pay the full costs of producing a product, they tend to OVER PRODUCE THE PRODUCT BECAUSE OF A SUPPLY SIDE MARKET FAILURE.
When producers are required to pay less than their cost of production for manufacturing their products they tend to produce more products, this is because, producing more products will cost less in production costs compare to if they are required to pay the full cost of production.

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Skysong Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at

k0ka [10]

Answer:Skysong journal $

Date

December 2020

Raw material Dr 984,100

Loss on raw material 48,000

Supplier Cr 1,032,100

Narration. recognition of raw materials purchased at agreed value.

2021

Supplier Dr. 1,032,100

Bank Cr. 1,032,100

Narration. Payment for raw materials purchased at agreed value.

Explanation:

The raw materials needs to be paid for at the agreed value not withstand ing the fall in value. However stock are to be recognized at cost or net realisable value which ever is less and since the market value of the stock has dropped this has to be recognized as a loss in the income statement to avoid the stock been over value.

6 0

3 years ago

Why do market fail? A) merit good B) storage C) misusing the powers

Nimfa-mama [501]

The answer is C because you can't misuse your powers in business

8 0

3 years ago

A woman walks into a store and steals $100 she comes back and buys $70 worth of goods with the $100, the owner gives her$30 in c

deff fn [24]

The answer is $100.

Amount she steals= $100
Amount she bought goods= $70
Amount the owner returns as change = $30
Amount owner loses=?

Amount she steals +amount of goods - amount she gives to owner + amount owner returns as change = $100 + $70 - $100 + $30 = $200 - $100 = $100

8 0

3 years ago

Mahogany inc. is a consulting firm. it reports its results on a cash-basis with a fiscal year ending june 30th. mahogany perform

Dimas [21]

If these are the missing choices:
A : the Securities and Exchange Commission, income principle
B : GAAP, revenue recognition principle
C : GAAP, expense recognition principle
D : the IRS, tax principle 

My answer is: B : GAAP, revenue recognition principle

The cash-basis is not in accordance with GAAP, and mahogany is in violation of the REVENUE RECOGNITION PRINCIPLE.

GAAP refers to Generally Accepted Accounting Principle.

It is stated that income must be recognized when it is earned not when cash is received. Because the company is using cash-basis, they will only report income earned on July 12 when they received the money not when they earned it which is before their fiscal year ending June 30.
They should recognized receivables from customers before closing the books for the fiscal year.

6 0

3 years ago

Sabrina Duncan had gross earnings for the pay period ending 10/15/16 of $5,835. Her total gross earnings as of 9/30/16 were $104

ivann1987 [24]

Answer:

option (A) $212.97

Explanation:

Data provided in the question:

Gross earnings for the pay period ending 10/15/16 = $5,835

Total gross earnings as of 9/30/16 = $104,400

Social Security tax rate = 6.2%

Now,

Total earnings

= Gross earnings for the pay period ending 10/15/16 + Total gross earnings as of 9/30/16

= $5,835 + $104,400

= $110,235

since,The Social Security taxes are on a maximum earnings of $106,800 per year

therefore,

Sabrina's Social Security withheld from her 10/15/16 paycheck will be

= ( Total earnings - $106,800 ) × Social Security tax rate

= ( $110,235 - $106,800 ) × 0.062

= $3,435 × 0.062

= $212.97

Hence,

The answer is option (A) $212.97

7 0

3 years ago