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trapecia [35]
3 years ago
14

In 2017, Costello Company performs work for a customer and bills the customer $10,000; it also pays expenses of $3,000. The cust

omer pays Costello in 2018. If Costello uses the accrual-basis of accounting, then Costello will report:_____
a. revenue of $10,000 in 2018.
b. revenue of $10,000 in 2017.
c. net income of $7,000 in 2018.
d. expenses of $3,000 in 2018.
Business
1 answer:
IRINA_888 [86]3 years ago
7 0

Answer: revenue of $10,000 in 2017

Explanation:

Accrual basis of accounting is a method that is used in accounting whereby the revenue or expenses have to be recorded when the transaction is made and not when the payment dor the transaction is made or received.

Since we are told that Costello Company performs work for a customer and bills the customer $10,000 in 2017, therefore if Costello uses the accrual-basis of accounting, then Costello will report revenue of $10,000 in 2017.

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Answer: $4

Explanation:

The Bottle division is said to be able to meet all excess demand outside as well as that of the Cologne Division.

When this is the case in a company, individual divisions are allowed to transfer to each other at a rate equal to their Variable Costs. This is the general rule.

The Variable Costs for the containers is $4 so that is the transfer price as well.

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3 years ago
If a local diner can sell 50 burgers per day at a price of $5 each, but must reduce the menu price to $4.95 to sell one more bur
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Answer:

$2.45

Explanation:

The formula to compute the marginal revenue is shown below:

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So, the change in total revenue is

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So, the marginal revenue is

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= $2.45

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