Answer:
<em>Warranty expense should be recorded in the period when the warranty service is performed.</em>
Explanation:
When the product is sold, a product guarantee liability and warranty cost should be reported if it is possible that consumers may make claims under the warranty and the amount can be calculated.
Those two provisions are part of the Financial Accounting Standards Statement No. 5 of the FASB, Accounting for Contingencies.
Answer:
285,000 units
Explanation:
The computation of the cash break-even point of sales units is shown below:
Cash break-even point = (Fixed cost - depreciation) ÷ (contribution margin per unit)
where,
Fixed cost = $7,600,000
Depreciation = $7,600,000 × 0.25% = $1,900,000
And, the contribution margin per unit is $20
So, the cash break-even point of sales units is
= ($7,600,000 - $1,900,000) ÷ ($20)
= 285,000 units
Answer:
none of these describe the savings and loan crisis
Answer: Market Efficiency
Explanation:
It is important that the Government as a regulator should not get involved in acts that would protect individual institutions from failure because that would defeat the whole purpose of a competitive industry.
If a government is known to directly involve itself in the protection of institutions from failure, efficiency in institutions may become low because of the lack of fear of failure as companies believe that should they run into bad times, they will simply be bailed out by the government so there is no need for them to maintain a competitive edge.
This can lead to a situation where we have companies performing sub optimally in an economy which can only act to reduce the Economic growth of a country.
Government institutions usually have such backing and in a lot of countries are prone to failure. Look at the Bamangwato Concessions Limited (BCL) mine in Botswana for instance that kept failing and refusing to improve it's efficiency because they could always run back to the government for a bailout. Their position eventually became so untenable that bankruptcy was the only option.
Answer:
lower
Explanation:
A natural monopoly appears when there are high entry costs like large infrastructure costs or economies of scale where a company can provide the products at a lower costs than others which provides a big advantage to the firm in the market and makes it difficult for any potential competitor to be able to compete. According to that, the answer is that a natural monopoly exists when a single seller experiences lower average total costs than any potential competitor as this represents a barrier for the competitor to be able to enter the market.
