Answer:
$27,000
Explanation:
Allowance for doubtful accounts before adjustment $15,000
Allowance provided for the month;
$800,000*1.5% $12,000
Closing balance for Doubtful Accounts $27,000
The allowance for doubtful accounts is provided on net sales basis therefore sales are multiplied with % of bad debt allowance given in question.
Answer: Buy Zed since the relevant cost to make it is $60.
Explanation:
Cost to produce Zed to Beta is $80.
If Beta buys Zed from a supplier, they will still incur 40% of their overhead which is:
= 40% * 50
= $20
Added to the cost of buying, total cost if Beta buys Zed would be:
= 58 + 20
= $78
<em>This is less than the cost to produce so Beta should buy Zed from the supplier. </em>
Non-profit organizations. (They don’t make money)
Hope I helped!
Answer:
Sunk; disregarded
Explanation:
Sunk cost is cost that has already been expended and cannot be recovered. It shouldn't be considered when making decisions.
No matter how much one argues, one would not be able to recover the $25. Therefore, it is sunk cost.
I hope my answer helps you