Answer:
Part A
Purchasing the product would result in saving of $25000, if the fixed overhead of $405000 can be avoided.
Part B
Making the product would result in saving of $5000.
Explanation:
It is important to consider only the relevant cost i.e. those cost which will not be incurred if a particular decision is made and will incur if the other option is chosen.
Part A
Purchasing the product would result in saving of $25000, if the fixed overhead of $405000 can be avoided.
The Relevant cost of manufacturing the product and the purchase price are as computed below in the second image.
Part B
Making the product would result in saving of $5000.
Answer:
If a foreign government hires an American consulting firm to help the country's textile industry improve production operations, the contract is commercial, and if the foreign government refuses to pay, the consulting firm may sue the government in American courts.
False
Explanation:
Any company could be sued at anywhere so far there is bridge of agreement or contract, with the analogy above such consulting American company would be sued but in the above case, a consulting American firm can not sue themselves unless someone in the company sue the American consulting firm
Answer:
Closed-End Fund
Explanation:
Close-End Funds raise money through an IPO and then its stocks are traded on secondary markets. There are no new issuance of stocks, nor there are repurchases of stocks, therefore, the price of their stocks is determined by the market. That is why their stock price will be based on its net asset value, but it fluctuates and is not dependent on it.
Answer and Explanation:
The transactions 3 6 and 8 represents that the expenses are incurred which results in increased and expenses and the transaction 4 and 5 shows that there is an increased in revenue
The journal entry is shown below:
For transaction 3
Rent expense
To Cash
(Being the rent expense is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 6
Electricity expenses Dr
To Cash
(Being the energy usage is paid for cash is recorded)
As the expense has debit balance so it would be increased
For transaction 8
Advertising expense Dr
To Account payable
(Being the advertising expense is recorded)
As the expense has debit balance so it would be increased
For transaction 4
Account receivable Dr
To Service revenue
(Being the service is provided)
As the revenue has credit balance so it would be increased
For transaction 5
Cash Dr
To Service revenue
(Being the service provided is recorded)
As the revenue has credit balance so it would be increased
The attachment is provided for better understanding
The other transactions represent the assets, liabilities and stockholder equity
