Answer:
The correct answer is false.
Explanation:
A firm incurs both variable cost and fixed cost in the short run. If the firm is able to cover the variable cost in the short run it will continue operating. However, if it is not able to cover its variable cost it will stop operating.
So, if the demand falls such that total revenue is not able to cover total cost but the variable cost is being covered, the firm will not stop production.
In the long run, all the costs are variable. So when the revenue is not able to cover cost, the firms will stop operating.
Answer:
exclusive dealing
Explanation:
Exclusive dealing -
It is the method , where a deal is set up between a specific supplier and the wholesaler or the retailer , where the no other distributor would be able to receive the supply , is referred to as exclusive dealing.
In this scenario no other dealer can not handle the product in any case.
Hence , from the scenario of the question,
The correct option is exclusive dealing .
Answer:
Option A, total debits to the inventory account would be $37,800, is correct
Explanation:
The cost of the merchandise inventory to Wilson Company is the cost of the inventory purchased and the freight-in cost.
In other words, the amount to be recognized in merchandise inventory account is the sum of both amounts i.e $35,000+$2800=$37,800
This would be debited to merchandise inventory and $2,800 would be credited to the cash account while $35,000 is credited to accounts payable