Answer:
False
Explanation:
Rule of thumb is generally an important factor in the decision-making process and they are made to mitigate the chances of errors. In decision making, there are various aspects which are involved and every time a decision is made circumstances are different. That is why the rule of thumb doesn't work always. So, the above statement is false, the rule of thumb can lead to severe errors in the decision-making process.
Answer with its Explanation:
The forces that had lessened the importance of the cost and management accounting systems in today's dynamic world are as under:
- The ancient bookkeeping and the costing techniques were very time consuming and the accounting systems were also not integrated with the financial accounting systems. Today we have very robust and integrated systems which helps the management of the business operations nation wide with greater security and better performance than the previous old versions.
- The complexity of the organization operations have resulted in origination of additional management accounting techniques that were adapted in the form of automated software, that are used to produce management reports on daily, weekly, monthly and yearly basis. The examples include the Throughput costing, Activity based costing, Bench-marking techniques, etc.
- The activities automation has led to attaining of maximum efficiency possible in some areas which wasn't possible in the past. The robots management systems, activity automation, etc has increased the fixed cost share in the total cost and the variable cost has become a very minute share of the total cost of the activity. This variable cost which is often referred to as controllable cost, is very less in percentage share of total cost today than 10 years back. In the future, we will see it as a very very very small share of total cost. This makes the today's management costing techniques obsolete and requires new solutions, new techniques, new softwares, etc. to manage the companies operations.
1. Dr Merchandise inventory 25100
Cr Accounts payable 25100
(To record purchase of inventory on account)
2. Dr Merchandise inventory 530
Cr Cash 530
( To record freight cost )
3. No entry
4. Dr Accounts payable 3600
Cr Merchandise inventory 3600
( To record purchase return)
5. Dr Accounts payable ( 25100-3600) 21500
Cr Cash 21500
(To record paid the amount due).
Answer:
<em>Therefore the output level at which the firm's profit is maximized is = -100.it indicates a loss</em>
Explanation:
<em> Given that,</em>
<em> the firm's profit function,
</em>
<em> (q) = 40q - (110 +20q +10q^2)
</em>
<em>
The Profit is maximised by taking the first formula of the profit function with respect to. q and putting it equal to 0, (first order condition). This gives us,
</em>
<em>
dπ (q)/dq = 40 - 20 - 20q = 0
</em>
<em>
The variable cos of the firm's average is , AVC= 20 +10q. At q=1, AVC= 30.
</em>
<em>
Since AVC is less the price, then the firm will function in the short run.
</em>
<em>
(since TR= 40q and q=1, therefore p=40).
</em>
<em>
It gives q=1
</em>
<em>
At q=1, revenue = 40, total cost= 140, therefore maximum profit = -</em>
Answer: The correct answer is "a) Income increases.".
Explanation:
a) Income increases - An increase in income would cause more money to spend on food and clothing, so the budget line would be steeper.
b) Price of food increases , and c) Price of clothing increases. -An increase in both the price of food and clothing would cause (as long as Income remains the same) that less quantities of both goods can be acquired, because they would cost more, therefore they would make the budget line Minor.
