Answer:
The correct statements about Albert's business:
C. Once Georgina has rented the coolers and the supplier has closed the store, Georgina is facing a long-run decision.
D. Specifically for this problem, the long run could be described as roughly 24 hours.
Explanation:
From the scenario, the variable factors are the number of beverages and the number of coolers for Albert's business. This is because the number of beverages and the number of coolers depend on demand. This eliminates option A. Option B is not a long-run decision but a short-run one. The long-run is a time period when the decision-maker cannot change her decisions to meet the prevailing demands.
Answer: A) absorption costing unit product costs
Explanation:
Absorption costing is the costing convention that is used when fixed costs need to be apportioned to the production of goods and services.
When a company has idle capacity, any production done using that idle capacity would incur no fixed costs because the fixed costs for the entire capacity, both idle and non-idle have been covered already as fixed costs are charged on the entire company capacity.
Absorption costing is therefore not relevant here as the company will use its sufficient idle capacity that has already incurred fixed costs.
Explanation:
This can be an interesting idea to start entrepreneurship, since starting a pet sitter service just requires liking animals and publicizing the service, which can be done for free through social media. I believe this is a good opportunity to learn more about managing your own business, meeting a new network of people and understanding the service market, as well as being a source of extra income.
Entrepreneurship is all about identifying people's needs and turning them into products and services that can be profitable, in addition to being a great tool to assist in the development of individual skills, market knowledge, innovation capacity, etc.
Answer: The effect will be that the results will be distorted by registering a gain in the incorrect period, since 3 months correspond to the current year, from October-December and the rest corresponds from January-March of the following year.
The correct way to record these 3 months is as a liability (deferred income) when the income is realized they are taken to the income statement.
