1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Do you believe self-regulatory practices are sufficient without governmental regulation to protect consumers? If not, what type
kaheart [24]

Self-regulatory practice is like serving Lion 50gms of meat after 10 days without any protection.It will go for a kill and Government intervention is highly required. Buying consumer goods,land and property, corporation and technology and locomotive.It is for working class, middle class , lower middle class.

Explanation:

  • Self-regulatory is related to one human mind taking decision.
  • In psychology it was always proven each human behavior.
  • Is  to dominate the other human irrelevant of there kindness.
  • Business run by single owner mostly dont pay suppliers, employees well.
  • If government steps in policies could be balanced for all the people.
  • Government works on decision by multiple people.It does not...
  • Single mind taking a decision.Consumers are cheated most of the time.
  • Regulators body  taking steps to curb the owners of business.
  • Example Ray kroc shuck hands with real owners of MC donalds that....
  • He would give royalty on a yearly basis but there was no paper work.
  • Of Government just a handshake they never got Royalty.
6 0
3 years ago
Gambling is something you should only do if you have discretionary income?
vichka [17]
A. Its true NOT B but its not false.
3 0
3 years ago
Read 2 more answers
The upper class makes up about 25 percent of the population in the United States. True or False
jeyben [28]
Yes that is correct :)
5 0
3 years ago
Read 2 more answers
____________ occurs when a seller takes on various digital identities by opening up several email accounts and bids on his or he
Aleksandr-060686 [28]

Answer:

Shill bidding

Explanation:

Shill bidding occurs when a seller takes on various digital identities by opening up several email accounts and bids on his or her own items multiple times to prompt genuine bidders to provide a much higher bid for an item than they would have done otherwise

5 0
2 years ago
Luebke Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at th
Sliva [168]
D.
221,500 why? because thats the answer
3 0
3 years ago
Read 2 more answers
Other questions:
  • Assuming that monthly returns are approximately normally distributed, what is the probability that this market-neutral strategy
    6·1 answer
  • Initially, when a firm hires a fourth worker, its wage rate goes from $80 a worker to $90. The marginal revenue product of the f
    10·1 answer
  • If the total assets of a business are $107,000 and its liabilities are $75,000, which of the following statements is correct?
    14·1 answer
  • Araceli is a team member in a large corporation. She never speaks in team meetings because she has seen members talk behind each
    7·1 answer
  • True or false<br> Price fluctuations or changes help to clear the market
    7·1 answer
  • A company estimates that overhead costs for the next year will be $8,320,000 for indirect labor and $155,500 for factory utiliti
    6·1 answer
  • Consider an oligopoly industry whose firms have identical demand and cost conditions. If the firms decide to collude, then they
    7·1 answer
  • . A rise in the price of corn will cause a (Click to select) in the Supply Curve for corn. b. A decrease in the price of seed (a
    7·1 answer
  • How has the u.s. fish and wildlife service positively impacted ecosystems? a. by regulating private land use b. by conserving wi
    11·1 answer
  • Why do you think organizations tend to focus on the creation of one type of value but not both?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!