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algol [13]
3 years ago
9

Fixed cost is:________.

Business
1 answer:
musickatia [10]3 years ago
4 0

Answer:

d. any cost that does not change when the firm changes its output.

Explanation:

Fixed costs are the expenses that remain constant throughout a financial period. They are not dependent on the output level for the period. Fixed costs are budgeted at the beginning of the season and will not change as long as production does not go beyond the optimal level. Examples of fixed costs are depreciation, rents,  administrative salaries, and insurance.

Variable costs contrasts fixed costs. Whereas fixed costs remain constant, variable cost change depending on the level of production. Adding fixed costs to variable costs results in the total costs for a business.  The average total cost is the total cost divided by the total output.

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During 2016, Ayayai Corporation spent $144,000 in research and development costs. As a result, a new product called the New Age
tatyana61 [14]

Answer:

Please see below the journal entries of Ayayai Corporation for the year ending 2016 and 2017 respectively.

Explanation:

Ayayai Corporation

Journal Entries

For the Year ending 2016

Debit: Research & Development Expense $144,000

Credit: Cash $144,000

To record research and development expense.

Debit: Patent $17,400

Credit: Cash $17,400

To record legal cost relating to Patent.

Debit: Amortization Expense $435

Credit: Patent $435

To record amortization expense for the pro rated year.

Ayayai Corporation

Journal Entries

For the Year ending 2017

Debit: Amortization Expense $1,740

Credit: Patent $1,740

To record amortization expense for year.

<em>AMORTIZATION EXPENSE CALCULATION:</em>

Legal Cost = $17,400

Useful Life = 10 Years

Amortization Expense = Legal Cost / Useful Life

Amortization Expense = $17,400 / 10

Amortization Expense = $1,740 per year

But since in 2016 the patent was obtained on October 1, so Ayayai Corporation will have to pro rate the Amortization Expense in 2016 as below:

Amortization Expense = Annual Amortization Expense x No. of months / Total no. of months

Since patent was obtained in October so the No. of months is '3'

Amortization Expense = $1,740 x 3 / 12

Amortization Expense = $435

5 0
3 years ago
Read 2 more answers
Suppose that the price of a good decreased. The substitution effect shows the change in consumption for all goods in reaction to
Lapatulllka [165]

Answer:

The correct answer is "relative prices; utility". A further explanation is provided below.

Explanation:

  • The conditions of a connection or bond between variables customer demand or perhaps the proportion of such a given cost of production to the normal distribution of so many other products available throughout the marketplace.
  • Individual's pleasure is usually measured by the consumption of that same goods and services.

Thus the above is the correct answer.

4 0
3 years ago
Lacuna Inc. factors $12,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retain
Elena L [17]

Answer:

The loss on transfer of receivables is $960,000

Explanation:

Sales amount                                       $12,000,000

Finance charge 3%*$12 million              ($360,000)

Retention amount 10%*$12 million           ($1,200,000)

Cash upfront                                           $ 10,440,000

The recourse liability is $600,000,which means that additional liability of $600,000 would be incurred by Lacuna Inc, if the total amount from the receivables is not received owing to the fact that the factoring is with recourse.

The loss on transfer of receivables is shown as:

Finance charge                    $360,000

Recourse liability                  $600,000

total loss                                 $960,000

5 0
3 years ago
Suppose changes in autonomous consumption affect investment while changes in autonomous government spending do not. in this case
Charra [1.4K]
 in this case, identical changes in autonomous consumption and autonomous government spending: <span> have different effects on equilibrium income

When a factor is implemented and have two different reaction, it is safe to assume that that factor have two different effects.
For example, an increasing interest in technology(autonomous consumption) may increased the investment for tech products. The government spending may not give as much influence in this context because it wont affect the transaction between the customers and the producer
</span>
8 0
3 years ago
________ costs refer to the sum of the fixed and variable costs for any given level of production. Target Break-even Total Value
BigorU [14]

Based on microeconomic theory, <u>Total</u> costs refer to the sum of the fixed and variable costs for any given level of production.

<h3>What makes Total Cost?</h3>

Generally, the total cost is the sum of all the price of the material utilized, the wages or salary paid in the production, and the direct expenditure.

<h3>Components of Total Cost </h3>

The components of Total Cost include the following:

  • Prime cost
  • Factory cost
  • Office cost
  • Cost of sales, etc.

Hence, in this case, it is concluded that the correct answer is "<u>Total Cost."</u>

Learn more about Total Cost here: brainly.com/question/25109150

5 0
2 years ago
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