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3 years ago

How is marginal analysis used

Business

1 answer:

masya89 [10]3 years ago

3 0

Answer:

Decision making

Explanation: Companies use marginal analysis as a decision making tool to help them maximize their potential profits.←

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Blue Spruce Corp. uses the percentage-of-receivables basis to record bad debt expense and concludes that 2% of accounts receivab

dedylja [7]

Answer:

The adjusting journal entry would be:

Debit: Bad debts expense $5,317

Credit: Allowance for Doubtful Accounts $5,317

Explanation:

Debit: Bad debts expense $5,317

Credit: Allowance for Doubtful Accounts $5,317

Explanation of the entry:

Allowance for doubtful debts at the end of the year = $402,000 × 2% = $8,040

Credit balance at the start = $2,723

Allowance for doubtful accounts = $8,040 - $2,723 = $5,317

The Allowance for Doubtful Accounts presently has a credit balance of $2,723 and allowance for doubtful debt at the end of year is $8,040, you need to enter an additional credit amount of $5,317 into the Allowance for Doubtful Accounts. The other part of this adjusting entry will be a debit of $5,317 to Bad Debts Expense.

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3 years ago

Soft drink manufacturers face (a) ________.

Ilya [14]

Answer:

The correct answer is (A)

Explanation:

Soft drink manufacturing industry faces a high threat of substitutes. Not many soft drink brand exit the market but many new companies and brand enter. Similarly, that is the reason why prices of soft drink do not fluctuate as compare to other food items. The competitive environment in the soft drink industry creates a high threat of substitutes.

6 0

4 years ago

Rice Corp. recognizes revenue over time to account for long-term contracts and has the following information for the first year

trasher [3.6K]

Answer:

D.) $75,000

Explanation:

Amount of revenue recognized = Cost incurred to date / Estimated total cost * Contract price

Cost incurred to date=60,000

Estimated total cost=400,000

Contract price=500,000

Amount of revenue recognized= 60,000/400,000 * 500,000

=0-15 * 500,000

=$75,000

Amount of revenue recognized in year 1 is $75,000

8 0

3 years ago

A customer has $20,000 to invest, but needs immediate access to the funds to pay a variety of bills that will arrive over the ne

tatiyna

Answer:

A. Money Market checking account

Explanation:

A money market account represents a savings account with some features of a checking account provided by a bank. Herein, a customer deposits money, and such funds are invested into money market instruments which are highly liquid, such as commercial papers, treasury bills, certificate of deposits, etc.

Such accounts provide debit card and checks and allow a certain number of withdrawals every month. The rate of interest offered under these accounts is usually higher than the ordinary savings account.

In the given case, the customer has $20,000 to invest and also requires immediate access to the funds to pay his bills. The best recommendation would be to deposit such funds to a money market checking account, which would provide him with access i.e liquidity, a higher rate of interest than on savings account and safety of investment.

It is noteworthy that all other options specified are not as liquid as money market checking account since, those alternatives either require considerable time in redeeming and selling or do not provide immediate access to funds.

4 0

3 years ago

It has been Shelly's dream to open a bakery, and while she has experience in making all types of baked goods, she always gets ra

jok3333 [9.3K]

Answer: Limited marketing

Explanation: Limited marketing strategy refers to the marketing strategy in which the organisation tries to target a specific set of customers from a target market rather than everyone.

These are opted by organisation that have unique features in the product they are offering or have specialization in a specific product among others.

In the given case, Shelly has expertise in making bakery products but her cupcakes gets special attention from the customers.

Thus, we can conclude that the decision of Shelly to open a cupcake shop is an example of limited marketing.

4 0

4 years ago