Answer:
C) Debit Cash $2,750
Credit Accounts Receivable $2,750
Explanation:
When payment is received in respect of services rendered or goods sold in the past periods, the accounting rule is to debit cash or bank as the case may be and credit account receivable for the amount received. This is necessary because in period when transaction took place, revenue has been credited and account receivable debited.
Answer:
The correct answer is A.
Explanation:
Giving the following information:
The estimated machine-hours for the upcoming year at 79,000 machine-hours.
The estimated variable manufacturing overhead was $7.38 per machine-hour
The estimated total fixed manufacturing overhead was $2,347,090.
To calculate the estimated manufacturing overhead rate we need to use the following formula:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 2,347,090/79,000 + 7.38= $37.09 per machine-hour
Answer:
The correct answer is option B.
Explanation:
As people are using more tablets and fewer television sets, the demand for television sets will decline. This will cause the demand curve to shift to the left. As a result, the price level will decline.
Now, with new production technique the cost of production declines. As a result, there will be an increase in the supply as the firm will be able to produce more at the same cost. This will cause the supply curve to shift to the right. This rightward shift in the supply curve may lead to an increase or decrease in the quantity of output. It depends on the extent of change in supply.
Answer: Jessica's implicit costs are $46,000.
Implicit costs are the benefits that an individual gives up when they take a decision. Implicit costs are also known as opportunity costs.
In this case, Jessica will lose her salary of $40,000 each year. She will also lose the rent of $6000 a year from the building if she opens her fast food joint. So, total implicit costs are:
<span>The goal of utility maximization is to allocate your resources in order to maximize your satisfaction.
Utility maximization is a concept which is used in the economics which explains that when a person is making a decision to purchase anything, he/she prefer to get the greatest value that is possible but at the least amount of money.
</span>