Mirah Company Compiled the Following Financial Information as of December

question 151

Multiple Choice

Mirah Company compiled the following financial information as of December 31, 2020: $\begin{array}{lr}\text { Revenues } & \$ 340,000 \\\text { Owner's Capital }(1 / 1 / 20) & 140,000 \\\text { Equipment } & 80,000 \\\text { Expenses } & 240,000 \\\text { Cash } & 90,000 \\\text { Owner's Drawings } & 20,000 \\\text { Supplies } & 20,000 \\\text { Accounts payable } & 40,000 \\\text { Accounts receivable } & 70,000\end{array}$ Mirah's assets on December 31, 2020 are

• A) $190,000.
• B) $260,000.
• C) $360,000. d $480,000.

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Definitions:

Fixed Costs

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance premiums, providing stability in budgeting and planning.

Value-based Pricing

A pricing strategy where the price is set based on the perceived value to the customer rather than based on the cost of the product or historical prices.

Economic Value

The measure of the benefit provided by a good or service to an economic agent.

Target Costing

Target costing is a pricing method used during the development phase of a product to ensure that costs do not exceed the target price minus desired profit, thereby ensuring competitiveness and profitability.