The example of an extension economy of scale is Bulk buying.
Explanation:
- economies of scale are the main cost whose advantages are for the enterprises that obtain due to their scale of operation, which is measured by the amount of output produced by the company with cost per unit of output resulting in decreasing with increasing scale.
- Economies of scale apply to a vast variety of organizational and business situations and at multiple areas, such as a production, the plant or an entire enterprise.
- Another source of scale economies is the possibility of purchasing inputs at a lower cost per unit, when they are purchased in large quantities.
- Managerial economies of scale occur when large firms are able to afford specialists. They manage i an effective manner, particular areas of the company.
- Economies of Scale refer to the cost advantage that us experienced by a firm when it increases its level of output.
- The advantage of the huge buying arises due to the inverse relationship between per-unit fixed cost and the quantity produced. The greater the quantity of output produced, the lower the per-unit fixed cost.
Explanation:
The journal entry to record the re-issuance of the stock is shown below:
Cash A/c Dr $240,000 (20,000 shares × $12)
Retained earnings A/c Dr $80,000
To Treasury stock $320,000
(Being the re-issuance of the stock is recorded)
The computation is shown below:
For treasury stock
= 20,000 shares × ($16 per share - $12 per share)
= $80,000
So as we can see the retained earnings is decreased by $80,000
Answer:
A
Explanation:
There is a sequence of preparing statements of financial statements because some statements use information from other statements of financial position. The income statement does not require information from any other statements. The retained earnings need information from income statement to calculate current retained earnings. The balance sheets require information from statement of retained earnings(retained earnings for this period).
Answer:
B. $12,500
Explanation:
Accumulated depreciation is the cumulative depreciation of an asset up to a single point or current point in its life.
Each period, the depreciation expense recorded in that period is added to the beginning accumulated depreciation balance. Therefore when there's an entry of depreciation of an equipment, the current value is added to the previous total of the old entry. Therefore the balance of the the depreciation after current entry is the beginning balance of the depreciation plus the balance entered into the record.
In this case, the beginning balance was $10,000 and the entry was $2,500
Hence, balance of accumulated depreciation account after entry is 10000 + 2500 = $12,500
Answer:
<u>D. Happenstance.</u>
Explanation:
The fact that German firms were nationalized has often been regarded as mere happenstance; meaning it just occurred based on the circumstances they were in immediately after World War II.
It thus encompasses several factors such as the cost of operations, changes in government, etc, not just one factor.
