Answer:
The correct answer to the following question is option B) both statements i and ii are correct.
Explanation:
First of all the marginal product can be defined as the additional unit of product that a business can produce by using additional unit of input. And marginal revenue product refers to the change that occurs in the total revenue due to the production of additional unit of product.
Any competitive firm would hire additional workers only when the MRPL (marginal revenue product of labor) is greater than the wages paid to that labor and additional cost incurred in hiring those workers and they would stop hiring the workers when the MRPL is equal to the cost paid to the workers.
Answer: This is called <u>Self-interest bias</u>.
Explanation:
When someone is using this type of bias they are doing it for their own self interest. They will use all information gathered to use the information that will benefit themselves and their interests. This can be considered unethical in some types of businesses. The person using self interest bias will try to blame others for any failures that they may have. They may also refuse to take personal responsibility in any situation.
These are three other types of bias;
- Selection bias
- Information bias
- Confounding
Answer:
c. $24,500
Explanation:
The allowance for doubtful accounts is a contra-asset account that records the amount of receivables expected to be uncollectiblea, makes a reduction of the total amount of accounts receivable appearing on a company’s balance sheet. There are two way to estimate uncollectible accounts: the percentage of sales method and the accounts receivable aging method.
ABC Company uses the percentage of sales method - application a flat percentage to the total amount of net credit sales for the period.
Estimated uncollectible = 3% x $750,000 = $22,500
The company establishes an allowance for doubtful accounts for $22,500 while simultaneously reporting $22,500 in bad debt expense.
Before adjusting on December 31, 2004, the Allowance for Doubtful Accounts had a credit balance of $2,000.
The balance in the allowance for doubtful accounts after adjustment is $22,500 + $2,000 = $24,500
Answer:
Introduction
Explanation:
The product is new in the market, sales are slow and to push it higher the company has to incur heavy expenditure on advertisement to make it appealing to customers. So products are introduced during the Introduction Stage.
Answer:
If the company is going to use the machine for 20 days, it is cheaper to lease it.
Explanation:
Giving the following information:
The cost to purchase is $10,000 plus $100 per day to operate or $500 per day to lease
<u>First, we need to structure the total cost formula for each option:</u>
Purchase= 10,000 + 100x
x= number of days
Lease= 500x
x= number of days
<u>Now, we can determine the total cost for 20 days:</u>
Purchase= 10,000 + 100*20= $12,000
Lease= 500*20= $10,000
If the company is going to use the machine for 20 days, it is cheaper to lease it.
