The cash<span> method accounts for revenue only when the money is received and for expenses only when the money is paid out. On the other hand, the </span>accrual<span> method accounts for revenue when it is earned and expenses goods and services when they are incurred. ... </span>Accrual<span> accounting is the most common method used by businesses.</span>
Answer:
$105,075
Explanation:
The computation of the operating income is shown below:
Sales (4 × 69,500) $278,000
Less:Variable costs (0.95 × 69,500 + 5% × 278,000) $79,925
Contribution margin $198,075
Less: fixed cost (13,000 + 80,000) $93,000
Net operating income $105,075
We simply deduct the variable cost and the fixed cost from the sales to arrive at the net operating income
To predict the total costs for 3,000 birdcages:
Use the average cost per unit of $18.00 and multiply it by 3,000.
($18)(3,000)= $54,000
$54,000 is the predicted total costs of 3,000 birdcages.
Answer:
a. false
b. true
c. true
d. false
Explanation:
a. The first statement is false as the demand for the soft drink do not declines
b. The second statement is true as the quantity demanded decreased
c The third statement is true as the supplied decreased
d. The fouth statement is false as the quantity suppied do not decline
Therefore the option b and C are correct and option A and D are incorrect
Answer:
The correct answer is letter "A": Overhead costs are often affected by many issues and are frequently too complex to be explained by any one factor.
Explanation:
Overhead is an accounting term used for costs that must be paid, even though the company receives no profits. A company would not be able to survive without paying its overhead expenses but the costs are not connected directly to a product or service being generated. Examples of overhead costs are rent, utilities, office supplies, and maintenance.
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<em>Overhead costs are difficult to be traced because they can be assigned to more than one factor.</em>
