Answer: a. At the end of Year One, the company's liabilities are understated.
Explanation:
Under the Accrual basis of Accounting, revenue should be recorded for only jobs that have been completed. In other words, only earned revenue should be recorded. Revenue that has not been earned but yet received, is to be termed Deferred revenue and should be treated as a current liability.
In this scenario, there are steps that have not been completed so some of the revenue received should be termed deferred revenue. These should therefore be in current liabilities and because they were not, the liabilities for the end of year 1 will be understated.
Answer:
$43,064
Explanation:
Sales $220,000 / 22,000 × 20,000
$200,000
Variable costs $77,000 / 22,000 × 20,000
($63,636)
Selling and admin $50,600 / 22,000 × 20,000
($46,000)
Manufacturing cost fixed
($26,400)
Selling and admin fixed
($20,900)
Net income
$43,064
Therefore, budgeted net income will equal $43,064 if 20,000 units are produced and sold.
Jake Skinner used a "Single Lump Sum Credit", which means he pays a single sum instead of paying over time.
Answer: E) Both answers B and D are correct.
Explanation:
Inflation using the Consumer Price Index is calculated by;
= (CPI in current year - CPI in previous year) / CPI in previous year
Year 2 Inflation = (100 - 90) / 90
= 11%
Year 3 Inflation = (110 - 100) / 100
= 10%
Answer:
The correct answer is the option D: tout differentiating features and charge a premium.
Explanation:
To begin with, the concept known as <em>''broad differentation strategy''</em> in the world of business refers to the process where the company focus in selling a product that stands out from the others and therefore the company makes its good an unique one by having something especial.
In the case presented, the marketing emphasis of a company pursuing a broad differentation strategy usually is to tout differentiating features and charge a premium due to the fact that those unique features will the make the product of the company a different one from the others and even though that they will charge more the customers will still choose the product if the see that there is no equal.
