Aperfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. the fixed cost of production is $20,000. the price of each good is $10. should the firm co
a) yes, it should continue to produce because its price exceeds its average fixed cost. b) yes, it should continue to produce because the firm's revenues cover the total variable cost of $16,000.c) no, it should shut down because it is making a loss. d) there is insufficient information to answer the question.

For each of the following users of financial accounting information and managerial accounting information, specify whether the user would primarily use financial accounting information or managerial accounting information or both: 1. sec examiner 2. bookkeeping department 3. division controller 4. external auditor (public accounting firm) 5. loan officer at the company's bank 6. state tax agency auditor 7. board of directors 8. manager of the service department 9. wall street analyst 10. internal auditor 11. potential investors 12, current stockholders 13. reporter from the wall street journal 14. regional division managers

Amethod of allocating merchandise cost that assumes the first merchandise bought was the first merchandise sold is called the a. last-in, first-out method. b. first-in, first-out method. c. specific identification method. d. average cost method.

As a general rule, when accountants calculate profit they account for explicit costs but usually ignorea. certain outlays of money by the firm.b. implicit costs.c. operating costs.d. fixed costs.