Answer:
be considered reasonable mitigation of damages.
Explanation:
Based on the information provided regarding the scenario at hand it can be said that this action would be considered reasonable mitigation of damages. This is a law principle that requires that a party who has suffered a loss due to a breach of contract (in this case Farmer Elvin) needs to take reasonable action in order to minimize the amount of the loss that they have suffered. Which in this case is exactly what Farmer Elvin is doing in order to recover some of the money that he lost from the breached contract by selling the potatoes to a local diner.
Answer:
$635,000
Explanation:
The computation of the net income under absorption costing is shown below:
= Income under variable costing + fixed production cost in ending inventory - beginning inventory
= $630,000 + $120,000 - $85,000
= $635,000
By adding the fixed cost and deduct the beginning inventory to the variable costing income we can easily calculate the absorption costing income
Answer:
TRUE
Explanation:
In managerial accounting, there are 2 meanings and significance of a relevant range.
1. The relevant range is the level of activity (range) that a firm is operating i.e. the volume of its production activity.
2. The relevant range is the level of activity within which certain cost behaviors are true i.e. whether the costs by their characteristics are fixed or variable.
Beyond a relevant range, cost behaviors could change in 2 ways
1. Variable costs could start manifesting the characteristic of semi variable costs or mixed costs or
2. Fixed costs could become stepped and become stepped fixed costs.
Therefore cost estimations which is based on cost behavior are only VALID within the relevant range. It is only within a given level of output that certain cost estimations holds true.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Kern Company deposited $1,000 in the bank on January 1, 2017, earning 8% interest. Kern Company withdraws the deposit plus accumulated interest on January 1, 2019.
We need to use the following formula:
FV= PV*(1+i)^n
A) i= 0.08 n=2
FV= 1000*(1.08^2)= $1,166.4
B) i= 0.08/2= 0.04 n= 4
FV= 1,000*(1.04^4)= $1,169.86
C) i= 0.02 n= 8
FV= 1,000*(1.02^8)= $1,171.66
Answer:
d) dividing net profit by the number of current shares.
Explanation:
The formula to compute the earning per share is shown below:
Earning per share = (Net income - preference dividend) ÷ (Outstanding Number of shares)
Basically we divide the net income or net profit after considering the preference dividend and then divided it by the outstanding number of shares so the earning per share could come
