<span>A business becoming incorporated is an example of risk management.</span>
When a business becomes incorporated it is trying to protect the assets of the company. By assessing and making a risk management decision to become incorporated they are protecting themselves and the company as a whole.
Answer:
The answer is d. payment to hire a security worker to guard the gate to the factory around the clock.
Explanation:
Let re-visit to the concept of Fixed cost before applying to the questions.
Fixed costs are costs which are unchanged given changes in production level.
a. payment to a electric utility is not fixed cost because higher level of production required higher electricity consumption which leads to higher cost of electricity.
b. cost of raw material is not fixed cost because the higher the production level, the higher the raw material required for production.
c. wages to hire assembly line workers is not fixed cost because the higher the production level, the more workers required and the higher the wages will be.
d. payment to hire a security worker to guard the gate to the factory around the clock is fixed cost because regardless of the production level, the security worker will work for the same amount of time and receive the same level of payment as his workload is much likely to remain the same.
So, d is the correct choice.
Ending inventory assuming weighted-average cost would be $694
Solution:
Given,
Dunbar sold 560 units of inventory
Apr. 1 Beginning inventory 550 $2.33
Apr. 20 Purchase 310 2.68
Now,
Ending inventory = 560 -550 = 10
= 310 -10 = 300
Ending inventory = 300 × $2.33 = $694
Answer:
a decrease in assets and a decrease in equity.
Explanation:
With regards to the above, cost of goods sold refers to the cost of a product either to a retailer or a producer. Higher cost of goods sold means that little profit is made by a company and vice versa. It is known to be a business expense, hence expenses are usually debited thus reduces equity, while a credited inventory decreases assets because as money is taken out of the business, it's assets decreases.
It therefore means that a debited cost of goods sold decreases equity, while a credited inventory decreases asset.
Answer:
B. False
Explanation:
This is false, as sales rebate is a different concept. The named contract is a <em>quantity flexibility contract</em>. Rebate is the discount which a buyer receives when buying a larger amount of goods. Rebate is determined by the contribution margin, as it has to be maintained to remain feasible for the seller.
