The cost recovery method does not recognize any income on a sale until the cost of the item sold has been fully recovered through cash receipts. Once the seller has recovered all costs‚ any subsequent cash receipts are included in income. The cost recovery method is used when the uncertainty of collection of the sales price is so great that even use of the installment method cannot be justified. Under the cost recovery method‚ both revenues and cost of sales are recognized at the point of sale
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must be sold to meet the salary goal? If product A is unavailable‚ how many units be sold of product B? (3) Assume in Example 1 (page 177) that the salesperson receives a bonus when combined sales from the two products exceed 80 units. The bonus is $2.50 per unit for each unit over 80. With this incentive program‚ the salary function must be described by two different linear functions. What are they‚ and when are they valid. (4) For Example 4 (page 181)‚ how many units be produced and sold in order
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20‚000 Leagues Under the Sea Main Characters: Professor Pierre Aronnax-Assistant Professor in Museum of Natural History in Paris; narrator of his adventures on the Nautilus; frenchman Counseil- Monsieur Aronnax"’"s 30 year old servant‚ ’"’ a true‚ devoted Flemish boy’"’ who accompanied Arronax in all his travels Ned Land- Canadian harpooner about 40 years old who joined Aronnax and Counseil on the ’"’Abraham Lincoln’"’ in search of the mysterious marine monster threatening the seas
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Why Are Cost‚ Revenue & Profit Important? Cost‚ revenue and profit are the three most important factors in determining the success of your business. A business can have high revenue‚ but if the costs are higher‚ it will show no profit and is destined to go out of business when available capital runs out. Managing costs and revenue to maximize profit is key for any entrepreneur. Definition of Terms Revenue is the same as total income for a business and measures all money taken in through
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Revenue‚ Cost Concepts‚ and Market Structure Rachel Mitchell EC 561 August 2‚ 2010 Professor Laurie Gazzale Revenue‚ Cost Concepts‚ and Market Structure Thomas Money Service (TMS) originated as a consumer finance company in 1940‚ granting small loans to individuals for household needs. Over time‚ its services expanded to financing business loans and commercial real estate loans. In 1946‚ TMS made the decision to embark upon equipment financing and a subsidiary named Future Growth Inc. (FGI)
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Analysis of Cost‚ Profit and Total Revenue Prepared by: Cajucom‚ Mary Jane Constantino‚ Georgia Escuadro‚ Abigail Ferry‚ Yasmin Joy Orobia‚ Maribel Lopez‚ Rannel Tumale‚ Mary Joyce Submitted to: Mrs. Gina Braga Accounting versus Economic Costs Economic costs Are forward looking costs‚ meaning‚ economist are in tune with future costs because these costs have major repercussions on the potential profitability of the firm. ● Opportunity cost‚ or costs that are incurred
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The general argument made by author Elizabeth Weil in her work “The woman who walked 10‚000 miles” is that she seems to be explaining that nowadays women seem to be more independent and better to strive in what they believe in. More specifically‚ Elizabeth weil argue that now women are more likely to be successful and accomplish their goals with full potential. She says that a guy named Robert Falcon set out to antarctica and wanted to achieve two primary goals. They were scientific discovery and
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In the article “In 2‚000 Years‚ Will the World Remember Disney or Plato?” written by Mark Rice-Oxley‚ he analyzes the impacts of American culture around the world. From music to media‚ film to fast food‚ language to literature and sport‚ the American idea is spreading inexorably (Rice-Oxley 163). Rice-Oxley questions what does American culture in fact bring to the world and how long it will last. Not everyone thinks American culture will stand the test of time (Rice-Oxley 167). Rice-Oxley points
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continuous review system and operates 52 weeks per year. One of the SKUs has the following characteristics. Demand (D) = 20‚000 units/year Ordering cost (S) = $40/order Holding cost (H) = $2/unit/year Lead time (L) = 2weeks Cycle-service level = 95% Demand is normally distributed with a standard deviation of weekly demand of 100 units. Current on-hand inventory is 1.040 units with no scheduled receipts and no backorders. 1. Calculate the item’s EOQ. What is the average time‚ in weeks between orders
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the impact of external costs and external benefits on resource allocation; (2.5 marks) Ans : Resources are over - allocated when negative externalities exist because the equilibrium price is too low. Resources are under - allocated when positive externalities exist because the equilibrium price is too high (b)Why are public goods not produced in sufficient quantities by private markets? (2.5 marks) Ans :The main reason is that of free rider problem. Pure public goods have characteristics such
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