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Leno4ka [110]
3 years ago
11

How do you account for financial losses in order to maintain quality customer service, for example, a restaurant that gives a fr

ee meal to an upset customer or a company that gives repeat customers a discount? From the viewpoint of a management accountant, how would this cost be classified and how would it figure into a company’s financial statements?
Business
1 answer:
IgorC [24]3 years ago
4 0

Answer: These costs will be classified as sales discounts

Explanation: Sales discounts are discounts given to customers for buying a company's products or special offer given to customers that are regular and loyal to a company's brand. Discounts are also given to attract new customers to a company's product.

Discounts are accounted for under the operational expenses head and are recorded as part of the company's operational expenses.

The effect of discounts are that it reduces the company's net profit but the positive effect is that it can increase the total sales of the company.

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A reversing entry is the exact opposite of an adjusting entry made in a previous period. is made when a business disposes of an
Ulleksa [173]

Answer: A reversing entry: <em><u>"is the exact opposite of an adjusting entry made in a previous period.".</u></em>

<em><u /></em>

Explanation: Reversion entries are an end-of-the-year technique that involves the reversal, on the first day of the new accounting period, of those end-of-year adjustment entries that cause expenses or income and therefore will result in payments or cash receipts. Its purpose is to allow company personnel to record routine transactions in a standard manner without referring to previous adjustment entries.

7 0
2 years ago
A company introduced a new low calorie version of one of its popular cold drinks. as a result, the sales of the original cold dr
sashaice [31]
This situation is known as cannibalization. Cannibalization is a marketing strategy that refers to the reduction company's see in there sales volume, revenue or market share of a current product when they release a new product. When a company releases a new product, those who are fans of their other products will likely try the new product instead of the hold which initially brings down the volume they sell and make from the initial product. 
4 0
3 years ago
Trahan Lumber Company hired you to help estimate its cost of capital. You obtained the following data: D1 = $1.25; P0 = $27.50;
lubasha [3.4K]

Answer:

B. 9.84%

Explanation:

Given that

D1 = 1.25

P0 = 27.50

g = 5%

F = 6%

Recall that

Cost of equity raised = (D1/P0 - [F × P0]) + g

Thus,

= 1.25/27.50 - [0.06 × 27.50] + 0.05

= 1.25/ 25.85 + 0.05

= 0.04835 + 0.05

= 0.09835

= 0.0984

=9.84%

8 0
3 years ago
Read 2 more answers
You, being a supplier of steak dinners, opened your steak house. Assume the market-clearing price is $20 and the market clearing
Shalnov [3]

Answer:

A) Shortage, B) Fall in Price

Explanation:

A] Market is at equilibrium where - downward sloping Market Demand (inversely related to price), & upward sloping Market Supply (directly related to price) - are equal &  these curves intersect each other.

Above condition gives us equilibrium price & quantity.

If market price < equilibrium price, as given case 15 < 20. Then, supply being directly related to price is lesser, demand being inversely related to price is higher. So, there is a situation of excess demand, ie <u>shortage </u>(graphically denoted by distance between demand & supply curve at actual price below equilibrium price)

B] Dealers of hybrid vehicles increase imply increase in supply of these vehicles, rightwards shift in the supply curve. This creates excess supply ie surplus of them. It implies that competition among sellers lead to <u>fall in price </u>of these hybrid vehicles.

7 0
3 years ago
A(n) ______ indicates the maximum quantity of a product that may be brought into a country during a specific time period:
mash [69]

What indicates the maximum quantity of a product that may be brought into a country in a specific period is a quota.

<h3>What does quota mean?</h3>

A quota is the maximum monetary value of a good and service that can be imported into a country for a  specific period.

The purpose of a quota is to restrict the amount of import into a country so as to boost local production of the good for which the quota is placed. Quotas also limit foreign competition.

To learn more about imports, please check: brainly.com/question/26497713

5 0
2 years ago
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