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3 years ago

1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.

Business

1 answer:

Solnce55 [7]3 years ago

7 0

Law of diminishing return has a positive relationship with marginal cost

Explanation:

The law of diminishing returns implies that marginal cost will rise as output increases. Eventually, rising marginal cost will lead to a rise in average total cost.

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Consider each of the transactions below. All of the expenditures were made in cash.

Allushta [10]

Answer:

1. Dr Research and development expenses $25,000

Cr Cash $25,000

2. Dr Legal fees expenses $8,500

Cr Cash $8,500

3. Dr Equipment $38,000

Dr Discount on Note Payable $5,599

Cr Cash $19,000

Cr Note Payable $24,500

4. Dr Building - sprinkler system $41,000

Cr Cash $41,000

5. Dr Patent $25,000

Cr Cash $25,000

6. Dr Equipment new $13,900

Dr Accumulated Depreciation - equipment $7,000

Dr Loss on trade in $3,600

Cr Cash $10,600

Cr Equipment - old $13,900

Explanation:

Preparation of the journal entries

1. Dr Research and development expenses $25,000

Cr Cash $25,000

2. Dr Legal fees expenses $8,500

Cr Cash $8,500

3. Dr Equipment $38,000

Dr Discount on Note Payable $5,599

($38,000-$19,000-$24,500)

Cr Cash $19,000

Cr Note Payable $24,500

4. Dr Building - sprinkler system $41,000

Cr Cash $41,000

5. Dr Patent $25,000

Cr Cash $25,000

6. Dr Equipment new $13,900

Dr Accumulated Depreciation - equipment ($13,900 - $6,900) $7,000

Dr Loss on trade in $3,600

($10,600+$13,900-$13,900-$7,000)

Cr Cash $10,600

Cr Equipment - old $13,900

5 0

3 years ago

True or False. The primacy effect refers to the tendency to recall the items at the beginning and end of a list better than the

fgiga [73]

Answer:

The correct answer is the option: False.

Explanation:

To begin with, the primacy effect, in the fields of psichology and sociology is known as a cognitive bias and is part of a serial-position effect among with the recency effect. Moreover, the term<u><em> refers to the tendency to recall the information at the beginning only</em></u> of a list better that the information in the middle and at the end of that same list.

Secondly, the recency effect is the one that establishes that a person tends to recall the items at the end better that the items at the beginning or middle.

6 0

3 years ago

If you buy a ticket to an outdoor concert but come down with a bad cold on the night of the show, the principle of ____ suggests

Marina86 [1]

Answer:

sunk cost

Explanation:

Sunk cost is cost that has already been incurred and it cannot be recovered. When making future decisions, sunk cost should not be considered.

The money i paid for the ticket is the sunk cost. I should not consider this cost when making the decision of whether to for the concert or not to

5 0

3 years ago

Dec. 1 Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid

spayn [35]

Explanation:

The Journal entry is shown below:-

a. Merchandise inventory Dr, $4,700

To accounts payable $4,700

(Being Purchase of merchandise is recorded)

b. Accounts payable Dr, $1,600

To Merchandise inventory $1,600

(Being Return of merchandise is recorded)

c. Accounts payable Dr, $3,100

To Merchandise inventory $31

($3,100 × 1%)

To cash account $3,069

(Being the amount paid)

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3 years ago

What is the typical number of payments that can be made toward paying off a revolving credit loan?

lara [203]

THE ANSWER IS UNLIMITED

6 0

3 years ago

Read 2 more answers

1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.​

1. Explain how 'Returns to Scale' and 'Law of Diminishing Returns' would affect cost in a manufacturing company.