Answer:
C. the production order quantity model does not require the assumption of instantaneous delivery.
Explanation:
EOQ refers to Economic Order Quantity method, this method particularly aims at 0 extra inventory in hand and keeping the total inventory in hand which is needed and then there is n assumption that the goods shall be delivered instantly.
Under the production order quantity model the model is made to calculate the quantity to be ordered for meeting the demand of production units.
This aims at the minimum order quantity to be delivered to meet the production needs.
Answer: (D) Application of ethics to business situations
Explanation:
The applications of the business ethics is one of the form of professional ethics in an organization that helps in examine the overall ethical principle and also the moral problems in the environment.
It also helps in governing the actions during the decision making process and also manage the behavior of the person in an organization.
It is also refers to the unwritten principle and the values in an organization that helps managing the company. According to the given question, the application of the business ethics situation is basically encountered by the ethical maturity model.
Therefore, Option (D) is correct answer.
Answer:
a. borrowers gain at the expense of lenders
Explanation:
Inflation refers to the sustained increase of the price of a commodity over a period of time.
It can be caused due to increase in production cost or increased demand of a good or service.
The losers during inflation are the creditors because the money loaned out had more value or purchasing power compared to what is repaid. This is due to the fact the borrower will still owe the lender the same amount .
Answer:
the journal entry should be:
Dr Cash X
Cr Dividend revenue X
When a company holds securities as an investment and classifies them as available for sale (AFS), any dividends received will be recorded as revenue.
Dividend revenue is reported in the income statement.
Answer:
$40,000
Explanation:
The accounting procedure involved in the above is that one picks the lower between the actual interest incurred and the interest computed on the weighted average amount of accumulated expenditures for PPE.
The actual interest incurred on specific construction debt and other borrowings
= $50,000 + $20,000
= $70,000
Since the interest computed on the weighted average amount of accumulated expenditure for the building is $40,000 , the lower between the actual interest incurred and interest on weighted average amount of accumulated expenditure is $40,000, hence will be the capitalized amount.
