Answer:
The answer is B.
Explanation:
Contingent liability is a liability that may occur in the future subject to the outcome of a specific event. The future outcome determines contingent liability. Examples of contingent liability are product warranties, pending court case etc.
So contingent liability should be recognized when the future events are probable to occur and the amount can be reasonably estimated
To calculate marginal cost, divide the change in production costs by the change in quantity. The purpose of analyzing marginal cost is to determine at what point an organization can achieve economies of scale to optimize production and overall operations.
<h3>What is
marginal cost?</h3>
The marginal cost in economics is the change in total cost that occurs when the quantity produced is increased, or the cost of producing additional quantity.
According to the law of declining marginal utility, as consumption increases, the marginal utility obtained from each extra unit decreases.
Marginal cost is an important concept in economic theory because a corporation seeking to maximise profits will produce until marginal cost (MC) equals marginal revenue (MR) (MR). After then, the cost of creating an additional item will outweigh the money generated.
To know more about marginal cost follow the link:
brainly.com/question/11689872
#SPJ4
Answer: lack of trust
Explanation:
From the question, we are informed that Horizon Trading wants to be paid before a consignment is shipped while its importer in Italy, Friggo Imports, wants to pay only upon receipt of the consignment.
These conflicting preferences of Horizon Trading and Friggo Imports are most likely a manifestation of lack of trust. We can see that both parties do not trust each other which is the reason for the differences.