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3 years ago

Examples of veriable costs

Business

1 answer:

Leviafan [203]3 years ago

7 0

Answer:

Exmples are : labor wage, cost of inputs

Explanation:

Variable cost are the costs that are changing with changing in inputs or production.

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Arctic Cat sold Seneca Motor Sports a shipment of snowmobiles. The snowmobiles were delivered on January 1, 2021, and Arctic rec

WITCHER [35]

Answer:

Assume the note indicates that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 39,700

Cr Sales revenue 36,759.26

Cr Discount on notes receivable 2,940.74

Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.

Assume the same facts as in requirement 1, and prepare the journal entry for Arctic to record collection of the payment on December 31, 2021.

Dr Cash 39,700

Cr Notes receivable 36,759.26

Cr Interest revenue 2,940.74

Assume instead that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2022. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 39,700

Cr Sales revenue 34,036.35

Cr Discount on notes receivable 5,663.65

Discount on notes receivable is a contra asset account that decreases the net amount of notes receivable.

Assume instead that Arctic does not view the time value of money component of this arrangement to be significant, and that the note indicates that Seneca is to pay Arctic the $39,700 due on the note on December 31, 2021. Prepare the journal entry for Arctic to record the sale on January 1, 2021.

Dr Notes receivable 33,900

Cr Sales revenue 33,900

Explanation:

Non interest bearing notes must be recorded at present value, so we need to determine the present value of the payment:

Payment due December 21, 2021, PV = $39,700 / (1 + 8%) = $36,759.26

Payment due December 21, 2022, PV = $39,700 / (1 + 8%)² = $34,036.35

We use the discount on notes receivable account (contra asset account) to decrease the net value of notes receivable.

8 0

3 years ago

Pierre's Ice Cream Company produces ultra-rich ice cream, which it sells in Cleveland, Ohio, and other neighboring places. Last

boyakko [2]

Answer:

The actual return on investment was 16.67%

Explanation:

the Return on Investment, will be the net income copared with the own funds (equity). So, we will compare the 50,000 net income with the owner's equity 300,000

50,000/300,000 = 0.1667 = 16.67%

The return on investment is 16.67% This means for every dollar of equity the comany earn 16.67 cent

It also means the company will return their entire investment in:

1/ROI = 1/0.166666 = 6 years

8 0

2 years ago

Peggy-Sue's cookies are the best in the world, or so I hear. She has been offered a job by Cookie Monster, Inc., to come to work

Ivan

Answer:

Accounting profit $103,000

Economic profit(loss here) is -$64,000

She should rather take the job at Monster Inc as she is not enjoying an economic profit

Explanation:

In this question, we are asked to calculate the economic and accounting profits for Peggy-sue’s cookies. We proceed as follows;

Accounting profit(I.e profit without opportunity cost) = 250,000 - 80,000 - 22,000 - 40,000 - 5,000 = $103,000

The Economic profit(profit with opportunity cost) = Accounting Profit - opportunity cost

Let’s calculate the opportunity cost;

Opportunity cost = 160,000( her salary I’d she was working with Monster Inc) + 35,000 * 20%( her investment if she leaves the company) = 160,000 + 7,000 = 167,000

Her Economic Profit = 103,000 - 167,000 = -64 000( a loss in this case)

5 0

3 years ago

Read 2 more answers

The revenue recognition principle guides accountants in ________.

Goryan [66]

The revenue recognition principle guides accountants in Answer: D determine when to record revenues. The revenue recognition principle lets accountants know when they need to record revenues and at what amount to record. The revenue recognition principle states not to record revenue until it has been earned in full.

3 0

3 years ago

Game theory is:A. a strategy that requires cooperation when multiple parties are involved.B. a methodology to accomplish winning

Makovka662 [10]

Answer:

C. the study of strategy and strategic behavior.

Explanation:

Game theory is the study of strategy and strategic behavior. It is assumed that the parties involved are rational. The payoff of a player of a game is determined by the actions of others in the game.

A popular example of game theory is the prisoners dilemma.

A game theory can involve more than two players.

An example of prisoners dilemma:

There are two prisoners - if both confess to a crime, they both get 5 years in prison. If both prisoners don't confess they are set free. If one confess and the other doesn't, the prisoner that confesses 2 years in prison while the other prisoner that didn't confess gets 10 years in prison.

The dominant strategy which is the best option for the prisoner regardless of what the other prisoner does is to confess.

The Nash equilibrium is for both prisoners to defect.

I hope my answer helps you

6 0

2 years ago

Examples of veriable costs​

Examples of veriable costs