Answer:
Find it below
Explanation:
1. Expense Recognition - Record expenses in the preiod the related revenue is recognized
2. Periodicity - The life of an enterprise can be divided into artificial time periods.
3. Historical cost principle - The original transaction value or cost upon acquistion.
4. Materiality - Concerns the relative size of an item and its effect on decisions
5. Revenue recognition - Criteria usually satisfied for products at point of sale.
6. Going concern assumption - The entity will continue indefinitely
7. Monetary unit assumption - A common denominator is the dollar
8. Economic entity assumption - The enterprise is separate from its owners and other entities.
9. Full-disclosure principle - All information that could affect decisions should be reported
.
Answer:
1. The cost of a hard drive installed in a computer. DIRECT MATERIAL COST.
The business of the company is to make computers so when it comes to hard drives, these are fundamental parts of a computer so they will be classified as direct materials since they are directly involved in the production process.
2. The cost of advertising in the Puget Sound Computer User newspaper. SELLING COST.
Advertising is done to be able to sell gods and services so it will fall under selling costs.
3. The wages of employees who assemble computers from components. DIRECT LABOR COST.
The labor cost of those that are involved in the direct manufacture of the computer will be considered direct labor as they are directly involved in the production process.
4. Sales commissions paid to the company’s salespeople. SELLING COST.
Sales commissions are paid to encourage the salespeople to sell more so this is a selling cost as it is incurred to increase sales.
Answer:
The price of the shoes will increase.
Explanation:
It is supply-and-demand. In this case, the supply is low but the demand is high so the store(s) have to raise the prices.
