Answer:
Joshua statement is correct.
Explanation:
Marginal cost:
Is the cost of producing a new unit.
Average Cost:


If the marginal cost of this plant is lower than their other plants, it can decrease his average cost by increasing the amount produced.
This increase in production decrease the impact of the fixed cost in the unit price. At more production the average cost will decrease. Because the variable cost keeps at the same value but the fixed cost per unit decrease.
The law of increasing opportunity costs is reflected in a production possibilities curve that is concave to the origin.
Answer:
a. Debit Accounts receivable for $600
Explanation:
As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -
Accounts receivable (Debit) $600
Revenue (Catering) (Credit) $600
Accounts receivable is debit because the company owes the amount from the customers.
Hyundai's success has been attributed to their AGGRESSIVE GOAL SETTING. The articles that review the success of the Hyundai company believed that the success of the company is due to many factors which include: internal transfer of experienced staff, focusing on localized production, the codification of previous experience and aggressive goal setting.
Answer:
Payback period = 3 years
Explanation:
<em>The payback period is the average length of time it takes the cash inflow from a project to recoup the cash outflow.</em>
<em>Where a project is expected to generate a series of equal annual net cash inflow, the payback period can be calculated as: </em>
<em>Payback period =The initial invest /Net cash inflow per year
</em>
The cash inflow = Net operating income + Depreciation
= 105, 000 + 45,000 = 150,000
Note we have to add back depreciation because it is not a cash-based expenses. And payback period makes use of only cash-based revenue and expenses.
Payback period = 450,000/150,000
= 3 years
Payback period = 3 years