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nydimaria [60]
3 years ago
10

You are an accountant working for Hotel Co. Your supervisor has asked you to research what amount of revenue Hotel Co. should re

cognize for transactions booked by customers on Expedia. Expedia generally collects the full transaction price from the customer, then withholds a small fee (say, $10) from each transaction and remits the balance to Hotel Co. Should Hotel Co. record the gross transaction fee or only the net amount it receives from Expedia
Business
1 answer:
Sonja [21]3 years ago
5 0

Answer:

Hotel Co. should record the gross transaction fee and not only the net amount it receives from Expedia.

Explanation:

The revenue that Hotel Co. should account for in its books includes the gross transaction fee, while the collection expense that is withheld by Expedia is recorded as an expense or cost.  This method ensures that the revenue due to the Hotel Co. is actually accounted for while the collection expense by Expedia is also separately accounted for.  This will enable comparison with another hotel that does not use Expedia for its collection, for example.

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Answer:

Gross national income

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Gross national income is the income earned by a country's residents. Income from abroad is also included in the calculation of GNI. Income earned by non residents in the domestic economy is substracted.

GNI = GDP + [(income from investments abroad) – (income sent abroad)].

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Is it ethical to be a billionaire?
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3 0
3 years ago
Alex is starting a career in ux and wants to be able to specialize in a particular ux design role and focus on one project from
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A small start-up is a good fit for Alex.

Startups are frequently internet- or technology-based firms with broad market appeal. On the other hand, you don't need a sizable market to expand into in order to run a small firm. All you need is a market, and you must be able to effectively contact and service every member of that market.

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After a few years of operation, startups are on the road to success. While small firms develop quickly, they can only do so if they start to see success over time. A startup needs time to develop and gain a large customer base that can use its product.

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8 0
2 years ago
Consider the following marginal cost function. a. Find the additional cost incurred in dollars when production is increased from
weqwewe [10]

Answer:   (a) $197,500

(b) $ 189,500

Explanation:

Given : The marginal cost function : C′​(x)=4000−0.4x

To find the cost function, we need to integrate the above function with respect to x.

Now, the additional cost incurred in dollars when production is increased from 100 units to 150 units will be:-

\int^{150}_{100}\ C'(x)\ dx\\\\=\int^{150}_{100} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{150}_{100}\\\\=[4000(150)-\dfrac{0.4(150)^2}{2}-4000(100)+\dfrac{0.4(100)^2}{2}]\\\\=[600000-4500-400000+2000]\\\\=197500

Hence, the additional cost incurred in dollars when production is increased from 100 units to 150 units= $197,500

Similarly,  the additional cost incurred in dollars when production is increased from 500 units to 550 units :-

\int^{550}_{500}\ C'(x)\ dx\\\\=\int^{550}_{500} (4000-0.4x)\ dx\\\\=[4000x-\dfrac{0.4x^2}{2}]^{550}_{500}\\\\=[4000(550)-\dfrac{0.4(550)^2}{2}-4000(500)+\dfrac{0.4(500)^2}{2}]\\\\=[2200000-60500-2000000+50000]\\\\=189,500

Hence, the additional cost incurred in dollars when production is increased from 500 units to 550 units = $ 189,500

4 0
3 years ago
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