Answer:
March 1, 202x, petty cash fund established
Dr Petty cash fund 1,050
Cr Cash 1,050
April 1, 202x, petty cash expenses
Dr Supplies expense 603
Dr Miscellaneous selling expense 183
Dr Miscellaneous administrative expense 136
Dr Cash short and over 22
Cr Petty cash 944
April 1, 202x, petty cash fund is replenished
Dr Petty cash 944
Cr Cash 944
The correct answer is- that it can be called as relational contract.
A relational contract is one in which the effect is based on the parties' trust relationship. The contract's explicit terms are an outline of the implicit terms and understandings that govern the parties' behavior.
Some features of relational contracts are-
- They represent parties' long-term relationships.
- They require an equal commitment from both parties.
- They necessitate a great deal of communication and collaboration.
Relational contracts are very important when it comes to retaining value over time and assisting in the maintenance of good contracting relationships. They are concerned with the long-term relationship between parties rather than just the transactional exchange. Although building trust can be difficult at first, relational contracts ultimately keep both parties happy by assisting in the creation of both tangible and intangible deals — and 'win-win' situations — that reduce operational costs. This goes a long way toward establishing long-term business relationships and mutual trust.
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Answer:
Ebon's explicit costs are $140,000
Explanation:
Explicit costs are all those which is directly paid to operate the business like wages, material etc. On the other hand implicit cost is the opportunity cost to choose and alternative.
Economic profit is the net of Revenue, Implicit and explicit costs.
Economic profit = Revenue - Explicit cost - Implicit costs
As we know salary earning of the let job is opportunity cost.
$10,000 = $175,000 - Explicit cost - $25,000
$10,000 = $150,000 - Explicit cost
Explicit cost = $150,000 - $10,000 = $140,000
Answer:
The contract price based on the expected value of future payments to be received is $246,960
Explanation:
The computation of the expected value is shown below:
For meeting the target, it will equal to
= (Received amount × number of months + additional amount) × probability rate
= ($39,200 × 6 months + $19,600) × 80%
= $203,840
For not meeting the target, it will equal to
= (Received amount × number of months - additional amount) × remaining probability rate
= ($39,200 × 6 months - $19,600) × 20%
= $43,120
So, the total expected value would be
= $203,840 + $43,120
= $246,960
C is the answer for this question.
