Answer:
TRUE
Explanation:
In managerial accounting, there are 2 meanings and significance of a relevant range.
1. The relevant range is the level of activity (range) that a firm is operating i.e. the volume of its production activity.
2. The relevant range is the level of activity within which certain cost behaviors are true i.e. whether the costs by their characteristics are fixed or variable.
Beyond a relevant range, cost behaviors could change in 2 ways
1. Variable costs could start manifesting the characteristic of semi variable costs or mixed costs or
2. Fixed costs could become stepped and become stepped fixed costs.
Therefore cost estimations which is based on cost behavior are only VALID within the relevant range. It is only within a given level of output that certain cost estimations holds true.
Answer:
A life insurance policy.
Explanation:
An assignment or collateral assignment is a type of guarantee for the lender. the most used is a life insurance policy that will cover the payments of the debt to the lender if Harry fails to pay.
Last year, BruceCo sold 1000 coffee cups for $10 each. This year, the company is planning on selling 1500 coffee cups. In order to cover the additional investment they will charge $10.50 for the first 500 cups, $10.25 for the second 500 cups and $10 for the last 500. Each cup costs $4.70 to produce. What is the marginal revenue for the 1125th cup?Answer: $10.00Last year, BruceCo sold 1000 coffee cups for $10 each.
Answer:
d. Orange Corporation will be allowed to deduct the interest expense in 2019 and Rodney will be required to report the interest income in 2019.
Explanation:
Since Orange Corporation is an accrual based organisation they cannot deduct the interest expense until Rodney (a cash basis taxpayer) recognises it as an income.
Rodney will recognise the income in January 2019 when he has received payment, and this is when Orange Corporation will ba able to deduct the interest expense.
