Answer:
(a) In case when Appraisal Department has excess capacity then minimum transfer will be:
($130.21 - $7.82) = $122.39
Minimum Transfer Price = $122.39
(b) In case when Appraisal Department has no excess capacity then minimum transfer price will be:
($130.21 - $7.82) + ($163 - $130.21) = $155.18
Minimum Transfer Price = $155.18
(c) No, the management should not force to charge the Home- Loan department only $150.42.
Answer:
Accrual basis of accounting
Explanation:
Accruals basis accounting (accruals accounting, the matching concept) depicts the effects of transactions and other events and circumstances on a reporting entity’s economic resources and claims in the periods in which those effects occur, even if the resulting cash receipts or payments occur in a different period.
Revenue from sales and other income should be reported in the period when the income arises (which might not be the same as the period when the cash is received from the customer / client).
Based on the above discussion it can be concluded that the Portie's practice is an example of accrual basis of accounting.
Answer:
D. The marginal cost of light is zero, and by convention zero-priced goods and services are excluded from GDP
Explanation:
Only things that have a monetary cost are included in GDP. Things that do not cost "anything" in monetary terms are not included, and this is a major shortcoming of GDP.
From an ecological economics standpoint, things like sunlight, air, and water are often not valued and included in GDP. This is the same case as in the question, because the marginal cost of light is zero, then, it is not included in GDP.
Answer:
Items b, d, g, h, and i
Explanation:
The following items from the given question would be recorded in the income statement;
b. sales
d. wage expenses
g. net income
h. inventory
i. cost of goods
Answer:
The answer is: $22
Explanation:
In order to calculate the cost of skipping practice, we have to calculate the total sum of the deficit incurred within the period, and this includes the money that would have been earned during that hour of practice if it had been attended (opportunity cost of time), and the admission fee into the carnival. This calculation is shown below:
Opportunity cost of time = $13
cost of admission into carnival = $9
Total cost of skipping practice = opportunity cost of time + cost of admission into carnival
= 13 + 9 = $22
