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2 years ago

Presented below are three revenue recognition situations.

Business

1 answer:

Digiron [165]2 years ago

3 0

Answer:

Explanation:

The transaction price in each case would be shown below:

(A) Transaction price - $900,000 and the revenue is recognized at the point of sale or on the date when the sale is made

(B) Transaction price - $720,000 and the revenue is recognized at the point of sale or on the date when the sale is made

(C) Transaction price - Present value should be transaction price i.e $417,600 and the remaining amount $32,400 ($450,000 - $417,600) would be recognized over the 24 months i.e 18 months + 6 months

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Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm h

Snezhnost [94]

Answer:

The Break Even Point is the Sales Value that will cover the cost of production. Meaning the Sales Value that will bring profitability to Zero

Break Even sales for Company wide = $378,000

Break Even Value for Chicago is $111,429

And Break Even Value for Minneapolis is $120,000

The Addition of both Outlets/Offices Break Even Sales is less than the Company-wide because the Offices don't share in the Common Fixed Expense as these are specific to Group reporting.

Explanation:

6 0

2 years ago

Which of the following statements best describes the law of diminishing marginal utility?

-BARSIC- [3]

The law of diminishing marginal utility states that as a person increases consumption of a good while keeping consumption of other products persistently then there is a drop in the marginal utility that person descends from consuming each extra unit of that product. So the answer is letter C.

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1 year ago

A department store chain is expanding into a new market, and is considering 16 different sites on which to locate 5 stores. assu

lesya692 [45]

We can find the number of ways by multiplying the amount of possibility each store can have.

For store 1, it can be placed on 16 sites. Store 2 can be placed on 15 sites (since store 1 is already on site 1). Store 3 can be placed on 14 sites and so on until store 5 which has 12 sites.

Therefore the number of ways is:

C = 16 * 15 * 14 * 13 * 12

C = 524,160 possibilities

3 0

1 year ago

A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. Residual value is expected to be

mel-nik [20]

Answer:

Annual depreciation= $73,551.72

Explanation:

Giving the following information:

A truck costs $316,000 and is expected to be driven 116,000 miles during its five-year life. The residual value is expected to be zero. The truck is driven 27,000 miles during the first year.

Annual depreciation= [(original cost - salvage value)/useful life of production in units]*units produced

Annual depreciation= (316,000/116,000)*27,000= $73,551.72

8 0

1 year ago

Read 2 more answers

Explain whether each of the following government activities is motivated by a concern about equality or a concern about efficien

Setler [38]

Answer:

a) Regulating cable TV prices - This is motivated by the concern about efficiency. Since one cable TV company can easily become a monopolist and manage cable TV prices on its own, market power (a type of market failure) is hindered by regulation. These measures aim to decentralize power and distribute it once again.

b) Providing some poor with vouchers that can be used to buy food. - Being a concern for equality, this regulation aims to improve fairness and equality among society levels by giving vouchers to poor people. Equality measures are usually non-efficient by the means of concern, and are a common practice in all governments.

c) Prohibiting smoking in public places - Being a concern about efficiency, this aims to overcome a possible externality. Third parties (non-smokers) are affected by something they cannot influence, which indicates a case of externality failure. Government regulation is essential

d) Breaking up Standard Oil (which once owned 90 percent of all oil refineries) into several smaller companies. - Once a monopoly, Standard Oil is broken down into several smaller, competition-oriented companies. The market failure regarding market power is regulated by this move. When this happens, Standard Oil will not be able to dictate prices.

e) Imposing higher personal income tax rates on people with higher incomes - Being an equality measure by nature, this economic remedy tries to create less discrepancy among income across all social levels. The standard deviation becomes smaller, which is the result of equality measures. Although people with higher incomes will always have a similar income, regulation vastly influences people with less income.

f) Instituting laws against driving while intoxicated. - This is an efficiency measure (against externality), as sober drivers and traffic participants become influenced by drunk drivers who they cannot control. In case of an accident, the third party is imposed a cost that could be fatal. Therefore, it has to be regulated.

4 0

1 year ago