Exhibit 7-1 Production of Pizza Data -Exhibit 7-1 Shows the Change in the Short-Run Production of |

question 205

Multiple Choice

Exhibit 7-1 Production of pizza data $$\begin{array} { | c | c | } \hline \text { Workers } & \text { Pizzas } \\\hline 0 & 0 \\1 & 4 \\2 & 10 \\3 & 15 \\4 & 18 \\5 & 19 \\\hline\end{array}$$
-Exhibit 7-1 shows the change in the short-run production of pizzas as more workers are hired. The table shows the marginal product of the labor input is decreasing with the hiring of the third worker. A possible reason for this diminishing marginal product is:

• A) decreased wages.
• B) increases in plant size.
• C) decreases in fixed cost.
• D) increased division of labor as additional workers are hired.
• E) decreases in labor productivity.

Prepare journal entries for bond transactions including issuance, interest payments, and retirement.

Apply the effective-interest method for amortizing bond premium and discount.

Recognize the financial reporting implications of retiring bonds early.

Compute and understand the significance of the amortization of bond premium or discount using both the effective-interest and straight-line methods.

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Definitions:

Breach of Contract

The failure to fulfill the terms of an agreement, which can lead to legal action and the imposition of damages to remedy the breach.

Sale of Goods Act

A statute that governs the sale of goods, providing rights to buyers and obligations to sellers, including aspects like quality and title.

Title Pass

The transfer of ownership rights from one party to another, particularly in the sale of goods or property.

Contract

A voluntary exchange of promises creating obligations that, if defaulted on, can be enforced and remedied in the courts.