Why are fixed costs generally more relevant in long-run decisions than short-run decisions?
In the long run, all costs are relevant. In the short run, many costs that apply to the existing production technology are sunk. In particular, depreciation charges and lease payments on long-term assets are unavoidable. In the long run, these assets are replaced and, thus their associated costs are relevant in the replacement decision.
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Closing Factory Overhead includes
a. a debit and credit to Factory Overhead; b. a debit only to Factory Overhead; c. a credit only to Factory Overhead; d. a debit to Cost of Goods Sold; e. a credit to Finished Goods
Gains and losses on the purchase and resale of treasury stock may be reflected only in
a. paid-in capital accounts. b. paid-in capital and retained earnings accounts. c. income, paid-in capital, and retaining earnings accounts. d. income and paid-in capital accounts. e. None of these answer choices is correct.
The expense recognition (matching) principle permits the use of the direct write-off method of accounting for uncollectible accounts when bad debts are very large in relation to a company's other financial statement items such as sales and net income.
Answer the following statement true (T) or false (F)
Activities that are illegal regardless of their effect are known as _____
A) per se violations B) multiple-party violations C) compensatory violations D)antitrust violations