Answer with its Explanation:
On February 14, the repairment of transmission is the repair and maintenance cost and hence it must be accounted for as an expense.
The Double entry would be:
Dr Repairs and Maintenance Expense $2,300
Cr Cash $2,300
On the same date, the installation of GPS system is an addition of an asset in the delivery truck hence it must be capitalized.
The Double entry would be:
Dr Delivery Van $450
Cr Cash $450
Answer:
Marginal analysis compares ____________ and ____________ to determine the optimal outcome or choice.
d) marginal benefits, marginal costs
Explanation:
Marginal analysis concentrates on the evaluation of the additional benefits of an activity compared to the additional costs. Marginal analysis is a decision-making tool that maximizes the potential profits that arise from changes in revenues and costs as a result of some changes in the activity levels. The analysis is done to ensure that the company does not make a decision based on sunk costs or fixed costs, which do not change as a result of a decision.
