Answer:
Statement b. is True
Explanation:
When using variable costing method, all the costs which are variable in nature is charged based on per unit basis and is not periodic in nature, as depends o quantum of production and sales.
While considering fixed cost, it is considered periodic in nature as this does not depend on quantum of production or quantum of sales, as this is fixed in terms for a period it is periodic in nature, and is treated unavoidable even at a level where no units are produced.
Thus, Statement b. is True.
Answer:
Extract as low as possible at present and as high as much possible in the future.
Explanation:
The company must sell fewer natural gas units because the sales price is at present and this will constitute to fewer income coming by the sale of natural gas, the company must only earn from natural gas as much as required to finance its needs at present. So to earn a higher revenue proportion in future due to increase in the selling price of the product, the company must extract as much as possible in future to earn more.
Answer: See explanation
Explanation:
The quart is the same as one quarter of a gallon and it is used for measuring liquid. The gallon is also a unit of measurement for liquid as well.
In converting 5 quarts to gallons, we should note that:
1 quart = 1/4 gallon
5 quarts = 1/4 × 5 = 1.25 gallon
Answer:
Equipment account increases , and cash decreases with same amount
Explanation:
In the case of acquisition of a new equipment , the equipment account is debited (increase) while the cash account is credit with the same amount of money used for the purchase .
Purchase of an equipment is a balance sheet item , which means it is recorded in the balance sheet and not the income statement as it is not an expense.
The asset register must also be updated with the value of the newly acquired item
