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beks73 [17]
3 years ago
13

When the "full-cost approach" to marketing cost analysis is used, allocating fixed costs on the basis of sales:A. may make low-v

olume customers appear more profitable than they are.
B. increases each customer's contribution margin.
C. decreases the profitability of the whole business.
D. makes large-volume customers appear more profitable that they are.
E. increases the profitability of the whole business.
Business
1 answer:
barxatty [35]3 years ago
6 0

Answer:A. May make low volume customers appear more profitable than they are.

Explanation:

The allocation of fixed cost based on sales volume will increase cost allocated to large volume sales unit which will invariably reduce their profit and will reduce the cost allocated to low volume sales which may increase their profit.

It does not affect the overall firm profitability not customers contribution margin.

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3 years ago
The accounting equation is assets = liabilities + owner’s equity.
Anon25 [30]

Answer:

A. Why must this equation always balance?

It must balance because all the assets that firm controls have been acquired either by external funding (liabilities), or by internal funding (owner's equity).

This also explains the relationship between economic resources and claims to economic resources. Economic resources (assets) are either the claim of an external agent that has to be paid in the future (liability), or the claim of one of the company's owners who could in theory dissolve the company and take possession of the company's assets (equity).

B. What transactions increase or decrease owner’s equity?

Profits increase owner's equity, as well as capita contributions, whether in the form of stocks, equipment, or other financial instruments.

Costs and expenses are substracted from revenues, and therefore they reduce profits, and owner's equity.

C. How does net income or loss affect owner’s equity?

A net income profit increases owner's equity, while a net income loss decreases owner's equity.

D. Please give an example of a transaction, applied to the accounting equation.

ABC corporation issues 1,000 common stocks with par value of $5, and a price per stock of $7. The journal entry is:

Account                                    Debit                Credit

Cash                                        $7,000

Common Stock                                                 $5,000

Additional Paid-In Capital                                $2,000

In this transaction, cash is an asset and common stock and additional paid-in capital are part of the stockholder's equity. The corporation does not have any liabilities yet.

ABC Corp accounting equation = Assets = Liabilities + Stockholder's equity

                                                     = $7,000 = 0 + $7,000

As can be seen, the accounting equation is true even in the earliest stages of the corporation.

6 0
3 years ago
Splish Company provides the following information about its defined benefit pension plan for the year 2017. Service cost $110,00
kipiarov [429]

Answer: $155,520

Explanation:

Pension Expense = Service Cost - Expected return on plan assets + Prior service cost amortization + Interest cost

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Pension Expense = 110,000 - 30,000 + 10,000 + 65,520

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3 0
3 years ago
During 20X1, the Balboa Software Company incurred development costs of $2,000,000 related to a new software project. Of this amo
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Answer:

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Data provided in the question:  

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Now,  

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The  party that  is responsible for reporting directly to the fda the investigator's financial interests with the sponsor is: The <u>sponsor</u>.

<h3>What is FDA?</h3>

FDA  which full meaning is food and drug administration is an agency whose sole responsibility is to ensure that food and drug does not cause harm to the health of the general public and they does this by ensuring that food and drug that make cause harm to the public to be discard.

It is the duty of the investigator to report any form of adverse events to the sponsor and the investigator must have carryout thorough investigation  and supervise the investigation personally before reporting to the sponsor.

Therefore the  party that  is responsible for reporting directly to the fda the investigator's financial interests with the sponsor is: The <u>sponsor</u>.

Learn more about  FDA here:brainly.com/question/939216

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4 0
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