Jules & Associates had the following information available related to revenues and expenses for the current period: Services
provided for cash - $123,000 Services provided on account - $240,000 Expenses paid in cash - $140,000 Expenses incurred on account - $42,000 Assuming no subsequent collection or payment for revenues and expenses on account, what is Jules & Associates net income under both the cash and accrual basis of accounting?
The correct answer is letter "C": forward vertical integration.
Explanation:
Forward integration happens when a company assumes roles that were initially carried out by its supply chain partners. Forward integration can be horizontal and vertical. Forward horizontal integration happens when one firm takes over another at the same supply chain level. In forward vertical integration, the companies situated further down the supply chain are taken over by a company which implies the integrating firm will be making direct contact with end-consumers.
why ? most of the company's care about the customer , but it depends how big is their market and also what they are offering , so the small restaurants or even dry cleaners , their business are not without huge demand , the customer and the restaurant have a low contact, or the usually use a complaints and claims box where the customer can express your opinion of the restaurant service.
B. Once management is committed to a specific location, many costs become relatively easy to reduce.
Explanation:
As a location decision is essential and a specific decision taken by the company it has to be focused on its decision and does not need to draw any conclusion as a location decision made in the past cannot be easily overcome or reduced depending on the choices of the firm or the location availability of the resources.
The location adds a cost to the company and is evaluated on the basis of the internal policy and thus is costly to undo. A location often serves as a point of maximum profit or the operations performed by a firm like the effects form the land cost, labor costs, energy costs, and transport costs, etc.
The law of supply is the microeconomic law that states that, all other factors being equal, as the price of a good or service increases, the quantity of goods or services that suppliers offer will increase, and vice versa.
