producer price index is a unit
of inflation built on prices compensated for supplies and inputs by producers
of goods and services.
producer price index is also used
to define the price index that entails of intermediary goods and finished
goods.
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Answer:
Expenses will be understated, hence, Net Income will be overstated.
Rent prepaid will be overstated, hence, current assets will be overstated.
Explanation:
Ordinarily, rent prepaid is meant to be credited every month to the tune of the the value that has been consumed and then added to period expenses to reduce net income.
In the statement of Financial Position, the same amount that has been consumed should be used to reduce balance in rent prepaid account, otherwise, current assets will be overstated if no adjustment is made.
Answer:
The $3,600 cash is collected in June
Explanation:
For computing the total cash collected in the June month, first, we have to find the sales of June and may which is based on the collection ratio which is given in the question.
June month collection = June sales × 30%
= $5,000 × 30%
= $1,500
In the question it is given that 30% is collected on June month and remaining i.e 70% collected in the May month or following month.
June month collection based on may sales = 70% × May sales
= 70% × $3,000
= $2,100
So, total cash collected in the June month is equal to
= June month collection + June month collection based on may sales
= $1,500 + $2,100
= $3,600
Hence, the $3,600 cash is collected in June
Answer:
Competitive advantage is a factor that a business has that allows it to perform better than its competitors by delivering more value to its customers. For example, a company can have a competitive advantage as a result of its offering, customer service or cost structure.
Answer:
Prime cost= $61,000
Explanation:
Giving the following information:
Direct materials $33,000
Direct labor $28,000
<u>The prime costs are the sum of direct material and direct labor.</u>
Prime cost= direct material + direct labor
Prime cost= 33,000 + 28,000
Prime cost= $61,000
