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zmey [24]
3 years ago
10

Suppose a company spends $200,000 in the current year to research and develop a navigation device for hikers. By the end of the

year, the company estimates that the new navigation device has a 70% chance of generating $500,000 in revenues from sales to customers over the next four years. For what amount would the company report research and development expense in the current year
Business
1 answer:
klemol [59]3 years ago
7 0

Answer: $200,000

Explanation:

The company spent $200,000 on the research that led to the development of the navigation device and according to Accounting guidelines, Research and Development costs are to be expensed in the period that they occurred.

The entire $200,000 that was spent should therefore be expensed as Research and Development.

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Oscar owns a meat processing plant that emits unpleasant odors that waft across the city. Because his production of processed me
m_a_m_a [10]

Answer:

impose a tax on Oscar's production of processed meat because the market quantity is greater than the socially optimal quantity.

Explanation:

Externalities are the impact that a business's activity has on its surrounding environment.

They can be positive or negative.

Negative externalities have a detrimental effect on the communities and people that exist around the company.

The case in the give scenario is a negative externality where the meat processing plant that emits unpleasant odors that waft across the city.

The socially accepted level of unpleasant odors from meat production is less than what Oscar's company is releasing to the community.

So there needs to be a tax on their production process to reduce the level

3 0
3 years ago
Let the inverse demand function and the cost function be given by P = 50 − 2Q cost function of firm 1: C1 = 10 + 2q1 cost functi
vovikov84 [41]

Answer: -c=+6q

Explanation:

3 0
3 years ago
Example : Yazici Advertising purchased supplies costing 2,500 on October 5. An inventory count at the close of business on Octob
Over [174]

Question Completion:

Journalize the adjusting entries:

Answer:

Yazici Advertising

Adjusting Journal Entries:

Date            Account Titles            Debit      Credit

October 31:

1. Supplies Expense                     $1,500

Supplies                                                        $1,500

To record the supplies expense for the year ended October 31.

2. Insurance Expense                     $50

Prepaid Insurance                                           $50

To record the insurance expense for the month of October.

Explanation:

a) Data and Analysis:

October 31:

1. Supplies Expense $1,500 Supplies $1,500 ($2,500 - $1,000)

2. Insurance Expense $50 Prepaid Insurance $50 ($600 * 1/12)

3. From the scenario, the year-end is October 31.

7 0
3 years ago
Job B. This job involves filling out and filing paperwork. The entry-level pay is low, but there are many opportunities within t
Vedmedyk [2.9K]

Answer:

Explanation:

What are the benefits?

The benefits include the pay,

the future prospect of a promotion,

an opportunity to learn and interact with people.

What are the monetary costs?

The monetary cost includes the cost of transportation which is either a bus fare or the cost to purchase a bicycle and the cost of lunch.

What are the non-monetary costs?

Non-Monetary cost includes the stress of waking up on time every day and going to work,

the stress of rushing to the bus station on time,

the stress of ridding a bike to work every day.

What are the opportunity costs?

Opportunity cost are those other jobs or things he could be doing out there that he will forgo by choosing this job.

Do the benefits outweigh the costs?

It depends on the individual, if you are the type who values stability, with not much responsibility and appreciates working with very friendly colleagues, then this will be a good place to start your career. But for someone with huge dreams and more responsibility, the opportunity cost of a better opportunity out there far outweigh the benefits.

6 0
4 years ago
Read 2 more answers
Athena Company provides employee health insurance that costs $15,400 per month. In addition, the company contributes an amount e
Vladimir [108]

Answer:

The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560

Explanation:

In order to calculate The entry to record the accrued benefits for the month we would have to calculate the following formula:

Accrued Benefits=  Health Insurance Cost+  (Gross Salary × Percentage Contributable)

Accrued Benefits=$15,400+($154,000×4%)

Accrued Benefits=$15,400+$6,160

Accrued Benefits=$21,560

The entry to record accrued benefits would be a Debit to Employee Benefits Expense of $21,560

6 0
3 years ago
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