Answer:
c. Purchase cost of existing machine
Explanation:
Relevant costs are the incremental costs that can be avoided by avoiding the functional activity with which the costs are associated.
Maintenance costs are relevant as they are directly linked to the use of machinery and as such are incremental with the use. The same is the case with the maintenance costs of the existing machine as they are avoidable if the new machine is purchased.
Expected cost savings would be incremental with the improved new machine. These cost savings thus are relevant.
Resale value of existing machine are also relevant as these would contribute towards the purchase of new machine.
The purchase price of existing machine is irrelevant as the machine cost has already been paid and regardless of purchasing the new machine or not, this cost is not a part of any calculations.
Hope that helps.
Answer:
A. She needs to acquire funding for her business.
Explanation:
Took the test
Answer:
This refers to price elasticity of demand.
Explanation:
The price elasticity of demand (PED) measures how much does the quantity demanded of a good or service changes proportionally to a 1% change in the price of the good or service.
-the percentage change in quantity demanded is 1 percent greater than the percentage change in price.
- ELASTIC DEMAND: when the change in quantity demanded is proportionally greater than the change in price.
-the percentage change in quantity demanded is equal to the percentage change in price.
- PRICE UNITARY DEMAND: e.g. if the price increases by 10%, the demand decreases by 10% (the same proportion).
-the percentage change in quantity demanded is 100 percent greater than the percentage change in price (in absolute value).
- ALMOST PERFECTLY ELASTIC DEMAND: if a product has a perfectly elastic demand, any small change in price will increase or decrease the quantity demanded to either infinite (price decrease) or zero (price increase). No demand is perfectly elastic, but a demand that changes by 100% more than the price change is very similar to this concept.
-quantity demanded does not respond to changes in price.
- PERFECTLY INELASTIC DEMAND: the quantity demanded doesn't change if the price changes. This rarely happens in real life as well as the perfectly elastic demand.
Answer: True
Explanation: Merit pay is an increase in employee base paid due to some increase in employee performance. While sales commission are payments to employee based on a percentage of the total revenue brought in by the employee.
It is true that employees would respond more productively to incentives such as merit pay or sales commission.
Answer:
Debit to Bad Debt Expense for $7,700
Explanation:
Based on the information given we were told that company's accounts receivable shows the estimate of uncollectible accounts totals of the amount of $6,400 while the Allowance for Doubtful Accounts has the amount of $1,300 as the debit balance. This means that the adjustment to record the bad debt expense for the period will require a
Debit to Bad Debt Expense for $7,700 Calculate as:
Dr Bad Debts 7700
(6300+1300)
Cr To Allowance for Doubtful Accounts 7700