Answer:
See below
Explanation:
Per the given details, predetermined overhead is be calculated as seen below
Predetermined overhead = (Estimated factory overhead / Estimated direct labor hour) × 100
Estimated factory overhead = $1,560,000
Estimated direct labor hour = 260,000
Predetermined overhead = )$1,560,000 / 260,000) × 100
Predetermined overhead rate = 600%
Political, economic, social and technological
Cost principle is an accounting concept wherein the initial recording of the asset, liability, or equity is based on its acquisition cost.
It is beneficial in recording assets and liabilities that are short-term only. Inventories or expenses are recorded at cost.
Long term assets and liabilities are not suitable for the cost principle concept because of the factor of time. There are assets and liabilities that fluctuate in value as time goes by and these changes in values must always be recorded or noted down every end of the accounting period.
If the demand for milk is relatively inelastic, the discovery will lower both price and total revenues.
Option - b
<u>Explanation:
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Reducing prices to gain sales is a famous advertising tool. This type of situation arises mostly with every day products and services. If the quantity is increased, the demand will be inelastic this will lower both price and total revenue. Total revenue is reduced as price is reduced when demand is inelastic. When demand is inelastic, instead of reducing total revenue it could be hiked by raising price instead of reducing price.
Inelastic demand: In Economics, inelastic demand is even when the price of the product increases or decreases, the purchase rate of the product will be the same.