Armstrong Company Recently Acquired a New Computer System

question 131

Multiple Choice

Armstrong Company recently acquired a new computer system.Which of the following costs associated with the computer should not be debited to the Equipment account?

• A)Insurance coverage purchased by Armstrong to cover the computer during shipment from the manufacturer
• B)Wages paid to system programmers hired to prepare the new computer for use
• C)Replacement of several circuit boards damaged during installation
• D)Installation of new electrical power supplies required for the computer

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Definitions:

Total Revenue

The entire amount of income generated by the sale of goods or services before any costs or expenses are deducted.

Output

The total amount of goods or services produced by a firm, industry, or economy in a given period.

Monopolist

A monopolist is a single seller in a market who has significant control over the supply of a product or service, and thus can influence prices and market conditions.

Marginal Revenue

This is the increase in revenue that results from the sale of an additional unit of a product.