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rjkz [21]
3 years ago
10

Oliver Industries is evaluating the manufacturing process for one of their products. Oliver has determined that the process has

yearly maintenance costs of exist29,000, yearly operating costs of exist22,000, and yearly revenues of exist97,000. Two years ago, the firm spent exist6,000 upgrading the equipment used to make this product, and it expects to spend exist5,000 on additional upgrades three years from now. In this scenario, Oliver:_____.
a) has sunk costs of exist5,000.
b) has sunk costs of exist6,000.
c) has sunk costs of exist51,000.
d) does not have any sunk costs.
Business
1 answer:
kifflom [539]3 years ago
6 0

Answer:

b) has sunk costs of exist6,000.

Explanation:

The cost which already been incurred and does not effect the decision being made. This cost is prospective cost. It can be avoided in decision making process.

Sunk Cost

Upgradation of Equipment = $6,000

Other cost are the routine costs which incur every year and future cost which is expected to be incur.

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"Cookie jar reserves" can best be described as:_______.A) Buying a lot of chocolate chip cookies, storing them for when you have
TEA [102]

Answer:

C) Overstating or understating allowances and reversing amounts in the future to smooth out net income over time.

Explanation:

Cookie jar reserve is defined as an accounting practice by businesses where the profit a company makes from successful years are reserved to cover up for years with losses. It balances losses from unsuccessful years.

Investors are led to believe that losses in bad years are less than they actually are.

For example not allocating an expense to a particular accounting year but instead allocating it to a year when the company made profits.

In essence it is overstating or understating allowances and reversing amounts in the future to smooth out net income over time.

5 0
3 years ago
Just for me is a line of hair care products for pre-teenage girls, that is, girls between the ages of eight and twelve. this is
olya-2409 [2.1K]
<span> the manufacturer of this brand decided to use television advertising to inform and persuade girls about this line of products. the manufacturer of this line of products used an advertising agency to assist in developing the commercial so that it would com</span>
8 0
3 years ago
The person probably most responsible for the direct labor efficiency variance is A. the marketing manager. B. the production man
katrin [286]

Answer:

B. the production manager

Explanation:

production manager is the person mostly responsible for thr direct labor efficiency variance.

5 0
3 years ago
Which one is not a current issue regarding export controls?
Lubov Fominskaja [6]
I would say "B. Who is the enemy?" , because of its generalization and vagueness. I recommend looking deeper into the definitions, but who is the enemy is definitely my choice.
5 0
4 years ago
g Oregon Corp. prepares its financial statements annually and has a calendar year end. The adjusted trial balance ( NO MORE ADJU
Semmy [17]

Answer:

$1,700,000

Explanation:

The computation of the NET accounts receivable (the cash realizable value) at December 31, 2019 is shown below:

= Account receivable - allowance for doubtful debts

= $2,000,000 - $300,000

= $1,700,000

By deducting the allowance for doubtful debts from the account receivable we can get the net account receivable or the cash realizable value

Therefore we ignored the bad debt expense

5 0
3 years ago
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