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Island Industries Inadvertently Recorded a $5,000 Betterment as an Ordinary

question 93

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Island Industries inadvertently recorded a $5,000 betterment as an ordinary repair.Which of the following will occur as a result of this mistake?


Definitions:

Marginal Costs

The supplementary expense incurred from making one more unit of a product or service.

Fixed Costs

Costs that do not vary with the level of output in the short term, such as rent, salaries, and loan payments.

Total Revenue

The total amount of money received by a firm from the sale of its goods or services, calculated as price times quantity sold.

Total Variable Cost

The total of all costs that vary with the level of production, such as materials and labor costs.

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