Answer:
Option A,overall net income will decrease
Explanation:
The rule is that an unprofitable segment should be eliminated if its contribution is negative or zero.
In other words, a good justification for closing up an unprofitable segment of a business is when its contribution(sales-variable costs) is equal to or less than the fixed costs
If Vegas Company closes the unprofitable segment the overall net income will decrease because the segment's contributes to recovery of fixed costs since its contribution margin is more than its fixed costs,hence closing it brings about increased costs and reduced net income
Answer:
Accrual Principle
Explanation:
The accrual principle is when a transaction is recorded in the time period that it occurs. In this case, recording a Friday transaction on Friday.
Answer:
B. Process cost accounting system.
Explanation:
On Process costing the cost added during the month are allocated to the units that passed through the process.
It is use for high volume of homogenueos units, meaning a unit has no diference with another and their cost are the same. This goes with the concept of equivalent units, so the ending inventory can be valuated base on completion.
