Answer:
Explanation:
In business accounting, the inventory conversion period / payables deferral period and average collection period use different inputs due to the fact that Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. Therefore the accounts receivable (average collection period) are attached and dependent on the specific/changing price of the goods sold.
Answer:
True
Explanation:
The satisfaction of customer is the key need of survival for any business.
As the customer satisfaction will result into good branding, economic support and vital performance booster for the organisation.
Customer satisfaction ensures that the organization is socially and economically viable, and equally capable of running business with the perspective of growth.
Thus the above stated statement is
True
Answer:
$62,100
Explanation:
Given that,
Sales price per unit = $ 40
Variable costs per unit:
Manufacturing = $ 23
Marketing and administrative = $ 8
Total fixed costs:
Manufacturing = $ 76,000
Marketing and administrative = $24,000
Total incremental costs:
= Variable manufacturing + Variable marketing and administrative
= (6,900 × $23) + (6,900 × $8)
= $158,700 + $55,200
= $213,900
Incremental income:
= Incremental revenue - Total incremental costs
= (6,900 × $40) - $213,900
= $276,000 - $213,900
= $62,100
Therefore, the operating income increases by $62,100.
