Answer: (A) Change in an accounting principle
Explanation:
According to the given question, the finer food Inc., is one of the company which using the average cost technique for measuring the inventory process.
So, the change made in the company is reported in the form of financial statement as change in an accounting principle of flow of the physical products.
The accounting change is the term which is used for reporting an entity and the estimating and evaluation the various types of asserts and liabilities in an organization.
Therefore, Option (A) is correct answer.
Answer:
It is important for a manager/decision maker to have a good understanding of both of these approaches, because it is more beneficial if the manager/decision maker can combine the two approaches to the situation.
Explanation:
Answer:
d. the action produces marginal benefits that exceed marginal costs.
Explanation:
The rational person is the person who takes the decision with keeping in mind about its future events and in practicable in nature instead of the emotional nature
When a company earns a net income, its revenue is more than its cost
So a rational person does not act unless when the action generates the marginal benefits that are exceeded from the marginal cost.
Answer: yes, because some people studied the material which would make it easier for the to catch on.
Explanation:
Answer:
The company should not further process the product as it results in income reduction by $1000.
Explanation:
According to the given data, company current profit for 1000 units is :
= (cost of sell) - (cost of manufacturing)
= $7000 - $5000
= $2000 (current profit)
While when company further process the product, the profit will be :
= (cost of sell) - (cost of manufacture)
= $10000 - ( $5000 + $4000)
= $10000 - $9000
= $1000
It clearly shows that further processing the product may result in reduction of profit by $1000.
Hence the company should not further process the product.
