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3 years ago

The question of when revenue should be recognized on the income statement according to GAAP is addressed by the:

Business

1 answer:

sleet_krkn [62]3 years ago

4 0

Answer:

a. Revenue recognition principle

Explanation:

The revenue recognition principle refers to the principle in which the revenues are recorded when it is realized or earned. It follows the accrual basis of accounting

It is not recorded when the cash is actually received.

When the sale is made, the same is to be shown in the books of accounts

Therefore as per the GAAP, the revenue should be addressed by revenue recognition

hence, the correct option is a.

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Bricktan Inc. makes three products, basic, classic, and deluxe. The maximum Bricktan can sell is 130,000 units of basic, 508,000

katrin [286]

Answer:

the total contribution margin if Bricktan chooses the most profitable sales mix is $27,000,000

Explanation:

It is important to note that the limiting factor identified is the production hours.

Step 1 Calculate Contribution per limiting factor of each product

Basic

1 unit requires 0.1 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $15/0.10

= $150

Classic

1 unit requires 0.125 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $25/0.125

= $200

Deluxe

1 unit requires 0.25 hours

Contribution per limiting factor = Contribution per unit / Quantity of limiting factor per unit

= $55/0.25

= $220

Step 2 Rank the products

1st = Deluxe

2nd = Classic

3rd = Basic

Step 3 Determine the production mix

Product Total hours demanded Balance

Capacity 134,000

Deluxe (230,000×0.25) = 57,500 76,500

Classic (508,000×0.125) = 63,500 13,000

Basic (130,000×0.1) = 13,000 0

Step 4 Calculate total contribution

Deluxe (230,000×$55) = 12,650,000

Classic (508,000×$25) = 12,700,000

Basic (130,000×$15) = 1,650,000

Total = 27,000,000

7 0

3 years ago

Store Policies that are open to interpretation by store employees

algol13

Answer:

a) Customer satisfaction

Explanation:

7 0

2 years ago

Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of t

liraira [26]

Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is 5/2 bushels of squash.

Opportunity costs are the possible advantages which any person or investor or any company forgoes while deciding between the two options.

Opportunity costs are invisible in nature. An opportunity cost is simply by definition is the difference between the expected returns of each option and this is also the formula for doing so.

To learn more about opportunity cost here

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4 0

1 year ago

If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ t

GuDViN [60]

Answer:

greater; higher than

Explanation:

Here is the complete question

If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ than the demand for middle seats, then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats

.a. greater; higher than

b. less; higher than

c. greater; lower than

d. less; the same as

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If the demand for aisle seats exceeds the demand for middle seats, it means that equilibrium price for aisle seat would exceed equilibrium price

3 0

3 years ago

What are some non-monetary costs of attempting to eliminate risks? loss of life loss of productivity loss of time.

NikAS [45]

Some non-monetary costs of attempting to eliminate risks a are time costs, search costs, and psychological costs .

Non-Monetary cost is a cost which a buyer pays other than money, to acquire a thing.The non-monetary price of acquiring a product comprises the time spent looking for it and the risk taken that it will provide the desired benefits.

Non-monetary costs are another type of sacrifice that customers feel when they purchase and use a service. When deciding whether to purchase a service or repurchase it, time costs, search costs, and psychological costs are frequently taken into consideration and may occasionally be more significant considerations than monetary price.

The psychological expenses associated with receiving these services are the most distressing non-monetary charges. Fear of rejection (bank loans), fear of not understanding (insurance), and worry of uncertainty (including fear of high cost) are all examples of fears.

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6 0

1 year ago