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Sliva [168]
3 years ago
7

The original capacity of the equipment is 10,000 units per year. After paying $2,500 to replace an important part, the company i

ncreases the capacity of equipment to 12,000 units per year. How does the company deal with the $2,500 expenditures
Business
1 answer:
Sauron [17]3 years ago
7 0

Answer:

The firm must increase the value of the equipment account by $2,500.

Explanation:

In this case, the repair expense must capitalize the asset account and not be considered an expense, instead it should be considered an additional investment. The $2,500 should be depreciated along with the normal depreciation of the equipment since it increased the productive capacity significantly.

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Evgen [1.6K]

Answer:

<em>c) contractual vertical marketing system.</em>

Explanation:

A contractual vertical marketing system <em>requires a legal agreement to manage the overall process between the various levels of the distribution or production chain.</em>

This system allows businesses to take advantage of economies of scale and advertising bounds.

Franchise system, sponsored retail and sponsored wholesale are aspects of a vertical marketing contractual framework.

4 0
3 years ago
Professional athletes attempting only to maximize income will defer larger salaries if:
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Professional athletes attempting only to maximize income will defer larger salaries if DEFERRED PAYOUTS ARE ADJUSTED UPWARD TO COMPENSATE FOR FOREGONE INTERESTS.
If professional athletes, whose sole aim is larger income are asked to wait for sometime before collecting their salaries, with the promise that their incomes will be raise for the period of their waiting, then, most of them will gladly agree to the arrangement, since, they are sure of higher amounts.
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3 years ago
An economy has five people: george, sarah, mason, abbot, and jin. george works for plastics, inc., 40 hours a week. sarah works
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The unemployed people in this economy are MASON AND ABBOT. 
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3 0
3 years ago
Tracy is thinking of marketing a new energy drink. Her target market will be parents of young children who need an energy boost
lorasvet [3.4K]

Answer:

The correct answer is  Generalizability.

Explanation:

The generalizability theory (theory G) allows to measure the reliability of a test by quantifying the importance of each of its sources of variability. The error is redefined, as a condition or facet of measurement, using the generalizability coefficient as a measure to estimate reliability. This approach does not contradict the fundamental approaches of the classical theory of tests, but can be seen as an extension of it.

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3 years ago
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IRISSAK [1]

Answer:

$91 favorable

Explanation:

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Note: the variable overhead rate variance is said to be favorable becasue standard variable overhead rate is geater than the actual variable overhead rate.

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3 years ago
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