Answer:
The correct answer is option D.
Explanation:
External economies of scale can be defined as the situation when the average cost of production is reduced due to growth of industry as a whole. It can also be referred as the external benefit of expansion of the industry.
It is generally associated with a perfectly competitive industry. While internal economies of scale is generally associated with imperfectly competitive markets.
Answer: $83050
Explanation:
Based on the information given in the question, the total reserves of First National Bank will be given as follows:
Total deposit = $675000
The Required reserve ratio will be:
= 675000 × 9%
= 675000 × 9/100
= $60750
Since the bank has excess reserves of $22,300, then the total reserve will be:
= $60750 + $22300
= $83050
Answer:
the cost of goods sold to be recorded at January 14 is: $230 .
Explanation:
LIFO (Last in First out) method, assumes that the last goods purchased are the <em>first ones</em> to be issued to the final customer.
This means that valuation of inventory will begin using the value of the <em>earliest</em> goods purchased.
The Cost of goods sold is calculated as follows :
Cost of goods sold : 9 units × $14 = $126
13 units × $8 = $104
Total = $230
Answer:
a. Accounted for prospectively
Explanation:
Warranty cost is an expense i.e. to be incurred for the repair or replacement of the goods comes under the warranty given by the company.
Here if there is a change in the rate i.e. used for determining the warranty cost so it would be accounted in prospectively manner i.e. it would be changed in the current period and also the amount should be estimated or predicted
Hence, the correct option is a.
