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Aleks04 [339]
3 years ago
10

A company uses the gross method to account for cash discounts offered to its customers. If payment is made before the discount p

eriod expires, which of the following is correct?
Business
1 answer:
Tomtit [17]3 years ago
4 0

Answer:

I don't know what are the options available but I know how to account for the cash discounts. For example if the company $10 of discount to the customer for purchasing $100, then the accounting treatment will be as under:

Dr Cash discount (Expense in nature)   10

Dr  Cash Received                                   100

Cr          Sales                                                     110

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USPshnik [31]

Answer:

$12,280,000.

Explanation:

All the direct costs involved in the manufacturing of a product except fixed cost is called prime cost e.g direct material, direct labor etc.

Direct Material = $4,200,000

Direct labor = $8,080,000

Total Prime cost = Direct material + Direct labor = $4,200,000 + $8,080,000 = $12,280,000

Overhead costs are not classified as the prime cost because these are indirect costs.

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I think the answer is C
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Explain why taking a monotonic transformation of a utility function does not change the marginal rate of substitution (MRS).
fredd [130]

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Monotonic transformation refers to changing the quantity of both the variables in a way that their ranking or order is preserved. Monotonic transformation of a utility function does not change the marginal rate of substitution as the order of preferences remains intact with the monotonic transformation. It's just the level of utility that either increases or decreases with such a transformation. The indifference curve shape remains the same. With monotonic transformation, consumer moves from a lower to higher or higher to lower indifference curve.

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