Answer: External horizontal diversification
Explanation:
External horizontal diversification is when new products or services are added to a company because they may appeal to the customers. This is a strategy that is used to increase the dependence of firm on certain segments of the market.
This was used when Fisher met with Bill Gates, CEO - Microsoft, to form alliances to develop new photo software that helped customers manipulate images.
Answer:
B. Each product, or job, uses the department to a different extent.
Explanation:
Departmental overhead rates uses a standard charge that is based on produced units attributed to a department.
Costs are applied with high precision.
When this model is used, the standard rate is multiplied by the number of units produced in the department, so there is no over allocation of resources.
For example if we consider the hours a machine operates. With a standard rate of $10 per hour, machine operation of 6 hours will give $10* 6 hours= $60
Answer:
income summary 143,100 debit
salaries expense 143,100 credit
Explanation:
The company will do an adjusting entry to reocrd the expense for the accrued but not payed salaries of the year:
salaries expense 3,100 debit
salaries payables 3,100 credit
Thus, the total slaries expense for the year would be:
140,000 + 3,100 = 143,100
To close we will leave the expenses balance at zero thus, we will credit this amount against an auxiliary account called income summary.
