Answer:
D
Explanation:
Price discrimination is when the same product is sold at different prices to customers in different markets
<u><em>Types of Price Discrimination</em></u>
1. first degree price discrimination : here sellers charge each consumer at their willingness to pay in order to eliminate consumer surplus.
2. second degree price discrimination : here firms offer different prices depending on the quantity purchased. e.g. giving discounts for bulk purchases.
3, third degree price discrimination : firms charge different prices to different groups of customers. e.g. having a certain price for senior citizens, students
<u><em>Requirements to practice successful price discrimination</em></u>
- The firm must have market power. If the firm does not have market power and attempts to price discriminate they would lose customers
- The firm must have different elasticities of demand for their product in different markets
- The firm must be able to segment the market for their products
A = 9,875 (1 + 0.048/12)^ 12(12)
A = $ 15,547
The amount of interest earned on investment = $ 15,547 - $ 9,875
= $ 7,672
Hope this helps
It is given that Daniel Dino restaurant owes employees' salaries of $15,000. It means the salary is payable to the employees and if Daniel Dino restaurant has not recorded the salary expense, then it needs to record an adjusting entry for the same.
To record the adjusting entry, the Salary expense shall be debited and Salaries payable shall be credited with the amount owed. The adjusting entry shall be as follows:
Salaries Expense Debit $15,000
Salaries Payable Credit $15,000
(Being adjustment made for salaries payable)
Answer:
Comparability : Inter company comparison , Consistency : Company time series comparison.
Explanation:
Consistency is quality of accounting information, enabling the same company's financial performance comparison over different periods of time. Consistency needs stable accounting methods used for a considerable period of time, unless their changing is necessary.
Eg : Using whichever method straight line or written down value - to calculate depreciation, should not be changed unless necessary.
Comparability is the quality of accounting information, enabling the company's financial performance comparison with other companies. It needs accounting methods following generally accepted accounting principles.
Eg: Accrual basis of accounting is generally standardised, acceptable and using other i.e cash basis won't enable company's comparison with others.
Consistency and comparability are very crucial to analyse company's financial performance - growth with time, growth as per industry standards respectively.