Answer:
The correct answer is option D.
Explanation:
The cost-plus pricing is a method of price determination. The price is fixed by adding a standard markup to the cost of the product.
We sum up the direct material cost, the labor cost and the overhead cost of a product. Then we add a certain percentage of markup to arrive at the selling price of the product.
An alternative to cost-plus pricing is value-based pricing.
Typically there is a correlation as time passes, interest rates go up. That is great for investments but not so good for debt.
Answer:
To ensure assets and liabilities are reported at appropriate amounts.
To ensure the related revenues and expenses are reported in the proper period.
Explanation:
Adjusting entries at the end of the period are basically made, to comply with the requirements of the accrual principal.
Under accrual principal the financial statements represent the true and fair view of the transactions and conditions of the company.
It basically records all the revenues and expenses at the time when they are incurred and not at the time when they are paid in cash, or cash is received.
As and when the transaction incurs, or to the period it relates it shall be disclosed.
Therefore, each balance sheet item is disclosed and reported at the appropriate amount. And the all the revenues and expenses related to the period are provided for.
Rent control is a mechanism by which the price of renting is kept within certain boundaries, such that it doesn't rise beyond a given level, nor grows at a rate higher than a specified rate. It's therefore a price ceiling. It can't be a price floor because any owner may decide to charge a fee as low as one may not be able to imagine. While there's no restrictions as to how low a landlord can go in terms of charging renters, the concept of price floor can't be considered here.
Answer:
$71,300
Explanation:
Stuart and Pamela Gibson
Casualty loss $13,600
[$48,600 – (10% × $350,000)]
Home mortgage interest 19,000
State tax 10,000
(18,000 income and 16,300 property
Limited to 10,000)
Charitable Contributions 28,700
Total itemized deductions 71,300
