From an accounting standpoint, stockholders' investment and revenues increase the assets of the company without adding to the liabilities. Therefore according to the equation (A = L + E), equity must increase.
Similarly, issuing dividends and paying expenses pays cash out of the company, which decreases assets without changing liabilities. Therefore equity must decrease.
Another way to think of it is: what contributes to the company's profit and/or value, and what decreases these things? Well, revenues and people investing in the company are good (and therefore good for stockholders), and giving cash out and paying expenses are costs to the company (and therefore decrease value for stockholders).
Answer:
You should produce as long as the marginal cost per additional box is lower than the marginal revenue obtained by the additional box.
In other words, if the marginal cost of producing the 101th box is lower than $1.75, then, you should continue to produce, because revenue will be higher than cost, and a profit will be made as a result.
Answer:
Mack, Marianne, and Martin
Explanation:
Based on the information provided within the question it can be said that in this scenario if the bank dishonors the check St. Mark can look for recovery from Mack, Marianne, and Martin. This is due to the fact that they all endorsed the check. This is because by endorsing the check you are signing the back of it which means that you are making it payable to someone else, and if the check is not accepted you are taking responsibility for paying that person. Which Mack, Marianne, and Martin all endorsed the check.
Answer:
The correct answer is option D.
Explanation:
The ethical principles in business are not much different from the ethical principle in general. They are not separately based on some other special rules to judge business conduct. They are judged from the society's perspective of right and wrong.
There are two schools of ethical principles, namely, ethical universalism and ethical relativism. Universalism believe that the concept of right and wrong are universal. While, on the other hand, relativism school believes that they vary according to local customs.
Though universal ethical principles from different societies form a kind of informal contract that all individuals and organizations have to follow.
Failure to observe these principles not only corrode company's reputation but have also other adverse effects and costs involved.
Answer:
$303
Explanation:
The computation of the absorption costing unit product cost is shown below:
= Direct materials per unit + Direct labor per unit + variable manufacturing overhead per unit + Fixed manufacturing overhead per unit
= $149 + $112 + $7 + $35
= $303
Working note:
The Fixed manufacturing overhead per unit is measured below:
= Fixed manufacturing overhead ÷ Number of units produced
= $301,000 ÷ $8,600 units
= $35
