This phenomenon is known as the <u>"income"</u> effect.
The income effect refers to an adjustment in the interest of a decent or administration, instigated by an adjustment in the purchasers' optional wage.
The income effect is the impact on real income when value changes - it tends to be certain and negative. Beneath, as value falls, and expecting ostensible salary is steady, a similar ostensible pay can purchase a greater amount of the great - thus interest for this (and different products) is probably going to rise.
Answer:
Answers a. and b. are both correct which shows the advantages of short-term financing (as compared to long-term financing).
Explanation:
The short term financing have includes less compliance, less interest rate, contain lesser amount, speedy transactions ,and lesser time period whereas the long term financing includes more compliance, large amounts, large time period.
Thus, a. and b. are both correct which shows the advantages of short-term financing (as compared to long-term financing)
Answer:
Let us take ABC Company, a manufacturing company to be our example company in discussing the fixed costs. Fixed costs are costs that remain constant for a given period of time regardless of changes in volume. The ABC Company’s fix costs includes the rent, insurance on property, and depreciation on machinery and equipment.
The rent is a fixed cost because it has a fixed amount which is to be paid every month. And the insurance on property is a fixed costs since the amount of the insurance that the company pays every month is already fixed and cannot be changed. The depreciation on machinery and equipment is also a fixed costs because the amount of depreciation is already computed and allocated every year to be expended and recorded at fixed cost.
The required entries are as follows:
Dr. Cost of goods sold $770
Cr. Inventory $770
Dr. Accounts receivable $1,260
Cr. Sales revenue $1,260
What entries are required for sale of merchandise?
When merchandise is sold, the company's inventory reduces and cost of goods sold increases ,hence, the appropriate entries are to debit cost of goods sold in the income statement and credit the inventory account in the balance sheet.
Also, to account for sale on account, which means credit sales, the revenue account is credited with the sales value whereas the account receivables which represents claim from the customer is debited, this would happen for every transaction because the inventory system is perpetual.
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Answer:
The role of organizational structure is to help make clear who answers to whom and where they fit in the chain of command
