On September 1,2013,Adirondac Marine Supplies Made a Loan to One

question 75

Multiple Choice

On September 1,2013,Adirondac Marine Supplies made a loan to one of its customers.The customer signed a 6-month note for $1,500 at 10%.When the note matured on March 1,2014,the customer settled with the company in full.How much cash did Adirondac collect from the customer?

• A) $1,575
• B) $75
• C) $2,500
• D) $1,500

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product or service.

Relevant Range

The range of activity or volume in which the assumptions about fixed costs and variable costs are valid.

Variable Cost

Costs that fluctuate with the level of output, such as materials and labor directly involved in production.

Cost Driver

An element that leads to a variation in the expense associated with an action.