Answer:
A. March 1
Dr Cash $ $311,000
Cr Common Stock
$ 141000
Cr To Paid in Capital in Excess of Par $ 170,000
B.April , 01
Dr Cash $79,000
Cr Common Stock $79,000
C. April, 06
Dr Inventory $48,000
Dr Machienary $180,000
Cr To Note Payable $98,000
Cr Common Stock $58,000
Cr Paid in Capital in excess of par (Balancing Figure) $72,000
Explanation:
Preparation of the issuer's journal entry for each of the separate transactions.
A. March 1
Dr Cash $ $311,000
Cr Common Stock
(47,000 Shares " $ 3) $ 141000
Cr To Paid in Capital in Excess of Par $ 170,000
(311,000-141,000)
B.April , 01
Dr Cash $79,000
Cr Common Stock $79,000
C. April, 06
Dr Inventory $48,000
Dr Machienary $180,000
Cr To Note Payable $98,000
Cr Common Stock $58,000
(2,900 Shares * $ 20)
Cr Paid in Capital in excess of par (Balancing Figure) $72,000
($48,000+$180,000-$98,000-$58,000)
Oak Ridge Steel Company has two departments, Casting and Rolling. In the Rolling Department, ingots from the Casting Department are rolled into steel sheet. The Rolling Department received 60,700 tons from the Casting Department. During July, the Rolling Department completed 74,500 tons, including 19,300 tons of work in process on July 1. The ending work in process inventory on July 31 was 5,500 tons.
Required:
How many tons were started and completed during July?
Answer:
1092749
Explanation:
the answer came by adding all the value of the equation
High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation: Beginning inventory 0 Units produced 47,000 Units sold 42,000 Selling price per unit $ 84 Selling and administrative expenses: Variable per unit $ 4 Fixed (per month) $ 560,000 Manufacturing costs: Direct materials cost per unit $ 17 Direct labor cost per unit $ 7 Variable manufacturing overhead cost per unit $ 3 Fixed manufacturing overhead cost (per month) $ 893,000
Management is anxious to assess the profitability of the new camp cot during the month of May.
Required:
1. Assume that the company uses absorption costing.
a. Calculate the unit product cost.
b. Prepare an income statement for May.
2. Assume that the company uses variable costing.
a. Calculate the unit product cost.
b. Prepare a contribution format income statement for May.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
Unitary product cost= 17 + 7 + 3 + (893,000 / 47,000)
Unitary product cost= 27 + 19
Unitary product cost= $46
Now the income statement:
Sales= 42,000*84= 3,528,000
COGS= (42,000*46)= (1,932,000)
Gross profit= 1,596,000
Total Selling and administrative expenses= (42,000*4) + 560,000= (728,000)
Net operating profit= 868,000
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Unitary variable product cost= 17 + 7 + 3
Unitary variable product cost= $27
Now, the income statement:
Sales= 3,528,000
Total variable cost= 42,000*(27 + 4)= (1,302,000)
Total contribution margin= 2,226,000
Total fixed manufacturing cost= (893,000)
Total Selling and administrative expenses= (560,000)
Net operating profit= 773,000
Aggies Candle Factory has recently been awarded a new contract with a large retailor in Doylestown. Demand for the candles is 25,0000 which a larger order than the company has ever handled before. They have called a business strategy meeting to ensure success of this project.; the Operations Manager has presented two different manufacturing options for consideration by the board:
Option A is highly automated with fixed costs of $25,000 and variable costs of $.1/candle.
Option B uses hand labor with fixed costs of $10,000 and variable costs of $.5/candle.
Which option should the board select and why?
Answer: Option A
Explanation:
From the question, the demand given is 250,000
For Option A,
Fixed cost = $25000
Variable cost = $0.1 per candle
Total cost = Fixed cost + Variable cost
Total cost = $25000 + ($0.1 × 250,000)
= $25,000 + $25,000
= $50,000
For Option B,
Fixed cost = $10000,
Variable cost = $0.5 per candle
Total cost = Fixed cost + Variable cost
Total cost = $10000 + ($0.5 × 250,000)
= $10,000 + $125,000
= $135,000
Therefore, the board should select option A as the total cost is cheaper than option B.
E7.5 (LO 2) (Recording Sales Gross and Net) On June 3, Arnold Company sold to Chester Company merchandise having a sale price of $3,000 with terms of 2/10, n/60, f.o.b. shipping point. An invoice totaling $90, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. On June 12, the company received a check for the balance due from Chester Company. Instructions a. Prepare journal entries on the Arnold Company books to record all the events noted above under each of the following bases. 1. Sales and receivables are entered at gross selling price. 2. Sales and receivables are entered at net of cash discounts. b. Prepare the journal entry under basis 2, assuming that Chester Company did not remit payment until July 29.
What was the opening price of Coca-Cola on Jan 1, 1962?
Answer:
I'm not 100 %sure but but I think 49 cents
Answer:
6.5 oz glass
Explanation:
a pharmacist and former confederate soldier produced the first Coca cola syrup on May 1886. Although most soda fountain drinks cost seven or eight cents at the time(for a 6.5 oz glass)
what are the major elements of market management? list them in 5 points.
Answer:
brain busters
Explanation:
its the answer coz i said it was
It is the least expensive automobile insurance coverage.
A) Liability
B) Collision
C) Comprehensive
D) Full
Answer:
C
Explanation:
As far as coverages goes, Comprehensive is the least expensive. However, liability is the basic coverage required on most insurance policies. Many states require a minimum insurance coverage of liability.
Steve and Craig have been shipwrecked on a deserted island in the South Pacific. Their economic activity consists of either gathering pineapples or fishing. We know Steve can catch four fish in one hour or harvest two baskets of pineapples. In the same time Craig can reel in two fish or harvest two baskets of pineapples. Assume Craig and Steve both operate on straight-line production possibilities curves. What is Steve's opportunity cost of producing a basket of pineapples
Answer:
His opportunity cost of a basket of pineapples is 2 fish
Explanation:
Opportunity cost is defined as the forgone alternative that a person must make when he makes a decision to do something.
So in economics apart from the cost of a product being purchased there is also consideration of the alternative that was ignored.
In the given scenario there are two activities they undertake. That is gathering pineapples or fishing.
Steve can either catch four fish or gather two baskets of pineapples in one hour.
This can be simplified as:
2 baskets of pineapples ÷ 4 fish = 1 basket of pineapples per 2 fish
So if Steve gathers 1 basket of pineapples he is letting go of opportunity to get 2 fishes
The Dow Jones is currently valued at $24,000 and the 1-year Dow Jones Mini Future contract has a price of $24,750. Note Dow Jones future contracts are for 5 times the value of the contract price. The risk free rate is 3% per annum and the Dow Jones dividend yield is 0.75% per annum. You are managing a portfolio that is worth $15 million and has a beta of 1.25.A) What position in futures contracts on the S&P 500 is necessary to hedge the portfolio?
B) 6 months have passed and the Dow Jones is now valued at $24,720 and the future price is now $25,100. What is our portfolio value of your portfolio with the hedge from part a?
Answer:
a) 152
b) $15,310,562.50
Explanation:
A) What position in futures contracts on the S & P 500 is it necessary to hedge the portfolio
The position is to short
The number to be shorted can be calculated using the formula below:
= ( β * value of portfolio) / (one futures contract size * number of times the value of the contract price)
where ; value of portfolio = $15 million , Beta = 1.25 , one future contract size = $24750, number of times = 5
= ( 1.25 * 15,000,000) / ( 24,750 * 5) = 151.5 ≈ 152 contracts
b) What is our portfolio value of your portfolio with the hedge from part a
Given that 6 months has passed
Dow Jones now valued at $24720
Future price now $25,100
first step : calculate loss from position in part a
= 152 * 5 * ( 24,750 - 25,100 ) = - $266,000
next : calculate Gain on index
= 24,720 - 24,000 / 24,000 = 0.03 = 3.00%
Total gain = Gain on index + annual dividend / 2
= 3% + 0.75 / 2 = 3.375%
where risk free rate ( 6 months ) = gain on index / 2 = 1.5%
Calculate Return with the use of CAPM
= 1.5% + 1.25* ( 3.375% - 1.5% ) = 3.8438%
Hence value of portfolio after 6 months will be calculated as
= Current portfolio value * ( 1 + return )
= 15,576,562.50
Therefore the
Net value = portfolio value - loss from futures position
=$15,310,562.50
Roberta is the supervisor of a fund-raising project. She notices that her team members are not able to meet the targets and they have deviated from the planned schedule. To understand the situation and the challenges that the team members are facing, Roberta wants to reach out to all the team members and establish an open communication culture. To convey her message clearly, the most appropriate way for Roberta would be to:
Answer: organize a face-to-face discussion with the team.
Explanation:
For Roberta to convey her message clearly, the most appropriate way will be for her to organize a face-to-face discussion with the team.
Since she wants to establish an open communication culture, having a face to face discussion is essential. In this case, the team shares their ideas and are more engaged. The team then understands what is required of them and works towards achieving company goals.
Talamoto Co. manufactures a single product that goes through two processes — mixing and cooking. The following data pertains to the Mixing Department for September.
Work-in-process Inventory Sept. 1 28,000 units
Conversion complete 70%
Work-in-process inventory Sept. 30 16,000 units
Conversion complete 50%
Units started into production in Sept. 72,000
Units completed and transferred out ? units
Costs
Work-in-process inventory Sept.1 $120,000
Material P 110,000
Material Q 165,000
Conversion
Costs added in September
Material P $180,000
Material Q 165,000
Conversion 354,800
Material P is added at the beginning of work in the Mixing Department. Material Q is also added in the Mixing Department, but not until units of product are forty percent completed with regard to conversion. Conversion costs are incurred uniformly during the process.
Total equivalent units for Material P under the weighted-average method are calculated to be:
______________.
A. 100,000 equivalent units.
B. 92,000 equivalent units.
C. 84,000 equivalent units.
D. 72,000 equivalent units.
E. 68,000 equivalent units.
Answer:
A. 100,000 equivalent units
Explanation:
Calculation for what the Total equivalent units for Material P under the weighted-average method are calculated to
First step is to calculate the Unit transferred out
Unit transferred out = 28,000+72,000-16,000
Unit transferred out =84,000
Now let calculate the Total equivalent units for Material P
Total Equivalent unit of material P = 84,000+16,000
Total Equivalent unit of material P = 100,000
Therefore the Total equivalent units for Material P under the weighted-average method are calculated to 100,000 equivalent units
The manufacturing division of an electronics company uses activity-based costing. The company has identified three activities and the related cost drivers for indirect production costs:
Activity Cost Driver
Activity 1 Direct materials CostActivity 2 Direct Labor Cost
Activity 3 Kilowatt Hours
Three types of products are produced. Direct costs and cost-driver activity for each product for a month are as follows:
Product A Product B Product C
Direct material cost $75,000 $50,000 $125,000
Direct Labor Cost $6,600 $1,000 $3,000
Direct Labor hours $2,000 $1,000 $2,000
Kilowatt hours $150,000 $200,000 $150,000
Indirect productioncosts for the month are as follows:
Activity 1 $30,000
Activity 2 $20,000
Activity 3 $16,000
Total $66,000
A.) Compute the indirect production costs allocated to each product using the ABC system?
B.) Compute the indirect production costs allocated to each product using a traditional costing system. Assume indirect production costs are allocated to each product using the cost driver: direct labor hours?
Which of the following is NOT a benefit provided by a stakeholder analysis document?
Select an answer:
You will know who the project stakeholders are.
You can prioritize stakeholders so you make sure to keep the most important ones happy.
You will know the best way to communicate project information to the stakeholders.
You will understand the best way to work with different stakeholders to get results.
Answer:
This is not a benefit provided by a stakeholder analysis document:
You can prioritize stakeholders so you make sure to keep the most important ones happy.
Explanation:
A stakeholder analysis document identifies a project's stakeholders, their participation levels, interests, and influences in the project. It determines the best approach to involve, and therefore, communicate with each stakeholder group. The purpose of the document is not to prioritize stakeholders but to identify the groups.
How would an increase in taxes influence the size of the multiplier in a four sector?
Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams estimated total overhead of $401,400; materials of $413,000 and direct labor of $223,000. During the year Adams incurred $424,000 in materials costs, $418,900 in overhead costs and $227,000 in direct labor costs. Compute the amount of under- or overapplied overhead for the year.
Answer:
an under applied of $10,300
Explanation:
The computation of the over applied or under applied is shown below;
Difference in overhead = Actual overhead - applied overhead
= $418,900 - ($227,000 × ($401,400 ÷ $223,000))
= $418,900 - $408,600
= $10,300
Since actual overhead is more than the applied overhead so it is an under applied of $10,300
Suppose you have two options when investing money in the stock market: stock A and stock B. The returns on both are dependent on the state of the economy, which fluctuates with the business cycle. During periods of strong economic growth, the rates of return for stock A and stock B are 16.00 and 9.00, respectively. Periods of weak growth during recessions cause the rates of return for stock A and stock B to fall to 10.00 and -3.00, respectively. Additionally, assume that an economic boom is twice as likely as an economic downturn.a) Calculate Expected return for stock Ab) Calculate expected return for stock B
Answer:
a. 14%
b. 5%
Explanation:
Expected return is the weighted average of the returns on a stock given the state of the economy.
Economic boom is twice as likely as an economic downturn.
Boom probability = 2/3
Downturn = 1/3
a. Expected return of stock A
= (16% * 2/3) + (10% * 1/3)
= 10.67% + 3.33%
= 14%
b. Expected return of stock B:
= (9% * 2/3) + ( -3% * 1/3)
= 6% + (-1%)
= 5%
Equipment costing $130,000 is expected to have a residual value of $10,000 at the end of its six-year useful life. The equipment is metered so that the number of units processed is counted. The equipment is designed to process 1,000,000 units in its lifetime. In 2019 and 2020, the equipment processed 180,000 units and 140,000 units respectively. Calculate the depreciation expense for 2019 and 2020 using each of the following methods:
Answer:
a. Straight-Line method:
Year depreciation = (Cost - Residual value) / useful life
= (130,000 - 10,000) / 6
= $20,000
2019 = $20,000 2020 = $20,000
b. Double declining.
= Twice the rate of straight-line.
= 1 / 6 * 2
= 33%
2019 2020
= 130,000 * 33% = (130,000 - 42,900) * 33%
= $42,900 = $28,743
c. Units of Production:
Rate per unit = (Cost - residual) / Number of units in lifetime
= (130,000 - 10,000) / 1,000,000
= $0.12 per unit
2019 2020
= 180,000 * 0.12 = 140,000 * 0.12
= $21,600 = $16,800
You are comparing replacing the current lab, which has a cost function of 400,000 + 15*Volume, with an automated lab that has a cost function of 500,000 + 10*Volume. Doing so would reduce the error rate from 1.5 percent to 1 percent. Your volume is expected to be 45,000 tests per year.
a. You should keep the current lab because its fixed costs are smaller.
b. You should adopt the automated lab because its total costs and error rate are smaller.
c. You should keep the current lab because its total costs and error rate are about the same.
d. None of the above
Answer: b. You should adopt the automated lab because its total costs and error rate are smaller.
Explanation:
You should adopt the lab that gives the lowest cost and this is the automated lab because it will have a lower cost due to its lower error rate.
Cost with Automated lab = 500,000 + 10 * 45,000
= $950,000
Cost with current lab = 400,000 + 15 * 45,000
= $1,075,000
Automated lab has a lower cost for the expected volume so should be adopted.
The purpose of this assignment is to identify and research a potential problem that technology could assist in solving. The ultimate goal is to imagine where technology will be in 18-36 months and how it will solve problems. Technology is constantly growing exponentially. As entrepreneurs, you have opportunities to use this technology to solve grand problems within the world that would better the human condition.
Write a one to three sentence problem statement highlighting a single key issue and answering the following questions
i: What is the problem?
ii: Approximately how many people are affected by the problem?
iii: To what extent are people affected?
iv: What aspects of life is affected?
Answer:
Explanation:
The following would be a hypothetical scenario which could be possible as technology progresses. One very serious disease that exists in our world is ALS or amyotrophic lateral sclerosis, which is a disease that affects the individuals nervouse system causing loss of muscle control. This disease affects more than 5,000 individuals per year, to the extent that most die within the first year. The disease affects every single aspect of the individuals lives as they begin to lose muscle control to the point where they can no longer move and their lungs stop working. It is known that this disease is caused by higher than normal levels of glutamate. With the help of technology in the future this chemical in the body may be able to be regulated and controlled using technology to the point where this disease will be completely treatable.
Match each phrase that follows with the term (a–h) it describes.
a. Direct labor and factory overhead
b. Direct labor and direct materials
c. Transferred-in costs
d. Equivalent units
e. Process costing
f. Job order costing
g. First-in, first-out method
h. Cost of production report
1. A process costing method that costs each period’s equivalent units of work with that period’s costs per equivalent unit
2. Measure of the work done during a production period, expressed in terms of fully complete units of output
3. Conversion costs
4. Summary of the activity in a processing department for a specific period
5. Costing system used by a company producing computer chips
6. Prime costs
7. Costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department
8. Costing system used by a company producing custom window treatments
Answer:
1. G
2. D
3. A
4. H
5. E
6. B
7. C
8. F
Explanation:
1. First-in, first-out method: A process costing method that costs each period’s equivalent units of work with that period’s costs per equivalent unit
2. Equivalent units: Measure of the work done during a production period, expressed in terms of fully complete units of output
3. Direct labor and factory overhead: Conversion costs
4. Cost of production report: Summary of the activity in a processing department for a specific period
5. Process costing: Costing system used by a company producing computer chips
6. Direct labor and direct materials: Prime costs
7. Transferred-in costs: Costs incurred in a previous process that are carried forward as part of the product’s cost when it moves to the next department
8. Job order costing: Costing system used by a company producing custom window treatments.
Person Status
Manuel is a 41-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, he took a part-time job but was given only 3 hours of work. Poornima is a 23-year-old recent college graduate . She did not work for pay last week, but she had two job interviews.
Shen is a 29-year-old retired professor. He enjoys volunteering at the local public library.
Caroline is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago
Antonio is a famous novelist. He is spending the summer at his lake house in upstate New York, doing a little writing each day but mostly spending his time gardening and reading.
Valerie is a 11-year-old student at West Valley Middle School. She baby-sits her younger sister and does other chores for which her parents give her an allowance of $20 per week.
Complete the right half of the following equation to reflect the labor force participation rate reported by the BLS. Labor Force Participation Rate =________
According to this formula, what is the labor force participation rate of this economy of six people?
a. 33.33%
b. 40%
c. 50%
d. 60%
Complete the right half of the following equation to reflect the unemployment rate reported by the BLS. Unemployment Rate = _______
According to this formula, what is the unemployment rate of this economy of six people?
a. 33.33%
b. 50%
c. 40%
d. 60%
Answer:
a. Manuel is Employed.
Manuel has a part time job and this is considered employment.
b. Poornima is Unemployed.
Poornima is not employed but is looking for work which is why she had two job interviews. This classifies her as unemployed.
c. Shen is Not in the Labor Force.
Shen is retired so is not in the labor force.
d. Caroline is Not in the Labor Force
Caroline gave up on looking for work so is not in the labor force as well as you have to be either employed or searching for work to be in the labor force.
e. Antonio is Employed.
Antonio is employed as a novelist and he is still active as he writes every day.
e. Valarie is Not in the Adult/ Working age population
Valaries is too young to be in the workforce.
2. Labor Force Participation Rate = Number in labor force / Working age population * 100%
= 3/ 5 * 100%
= 60%
3. Unemployment rate = Number of unemployed people / Number in labor force * 100%
= 1 / 3 * 100%
= 33.33%
A cell-phone repair shop consists of three processes. Step 1 requires 6 minutes per unit, step 2 requires 5 minutes per unit and step 3 requires 7 minutes per unit. 30% of units that complete the third step require rework, which means those units must start the process over at step 2 (processing times are the same for units being reworked) and rework is always successful. Demand at the shop is 0.5 units per minute Instruction: Round your answer to three decimal places What is the capacity of the shop in units per units per minute)?
Answer:
Step 2 = 6 minutes
Step 2 = 5 minutes
Step 3 = 7 minutes
30 percent of 3 needs rework
Total time = 6+5+7 = 18 minutes
We start over from step 2
5+7 = 12
0.3 x 12 = 3.6 minutes
Total time = 18 + 3.6 = 21.6 minutes
Units per minute = 1/21.6 = 0.046
This is the capacity
11. Purchased a parcel of land on March 1, 2020 for $950,000 by paying $490,000 in cash and signing a short-term note payable with the seller for $460,000. You must repay the $460,000 in exactly one year on March 1, 2021. You agree to pay the seller 5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2020, and March 1, 2021). [Adjusting Entry Required]
Answer:
Adjusting Entry:
June 1:
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
September 1
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
December 1, 2020
Debit Interest Expense $5,750
Credit Cash $5,750
To record the interest expense.
March 1, 2021:
Debit Short-term Note Payable $460,000
Debit Interest Expense $5,750
Credit Cash $465,750
To record the full settlement on account.
Explanation:
a) Data and Calculations:
Short-term note payable = $460,000
Interest expense = $5,750 ($460,000 * 5% * 1/4)
Orange, Inc., a calendar year corporation, elects S corporation status for 2020. The company generated a $335,200 NOL in 2019 and another NOL of $201,120 in 2020. Orange recorded no other transactions for the year. At all times in 2019 and 2020, the stock of the corporation is owned by the same four shareholders, each owning 25% of the stock. Pete, one of the shareholders, holds a $26,816 basis in the Orange stock at the beginning of 2020.
Complete the statement below that outlines the Federal income tax issues that Pete faces.
The 2020 C corporation NOL of $74,000 _______ forward into the S corporation year. Therefore, the deductible loss in 2020 by Pete is $______ , with a $_____ carryover.
Answer: See explanation
Explanation:
Ownership =25%
NOL in 2019 = $335,200
Share in NOL = 25% × $335200 = $83800
NOL in 2020 = $201,120
Share in NOL = 25% × $201120 = $50280
Share in NOL = $50280
Less: Tax basis at start of 2020 = $26816
Excess NOL = $23464
Therefore, the deductible loss is $26816 and the carryover is $23464.
On January 1, Year 1, Samuel Company leases equipment from Lease Corp. The lease agreement specifies five annual payments of $50,000, with the first payment due at lease signing (January 1, Year 1), and at each January 1 from Year 2 to Year 5. At the end of the lease term, the equipment will be returned to the lessor and is expected to have a residual value of $30,000. The estimated useful life of the equipment is six years. The interest rate in the financing arrangement is 6%. The cost to Lease Corp of manufacturing the equipment is $150,000. The journal entry for the Lessor on January 1, Year 1 will include __________-
Answer:
Cash (Dr.) $50,000
Lease Receivable (Cr.) $50,000
Explanation:
Lessor is the person who leases the item to gain financial benefit from the asset user lease. Lessee is a person who uses the assets but does not owns it so he pays lease rentals. In the given scenario the lease recoding at inception in the lessor books will be cash debit and lease receivable credit.
The cash flows of a project should: Multiple Choice be computed on a pretax basis. include all sunk costs and opportunity costs. include all incremental and opportunity costs. be applied to the year when the related expense or income is recognized by GAAP. include all financing costs related to new debt acquired to finance the project.
Answer:
Include all incremental and opportunity costs
Explanation:
Incremental cash flows from a project is usually said to be a firms cash flows with the project minus firms cash flows without the project. It includes the sales captured from the firm's competitors, incremental sales brought to the firm as a whole, retained sales that would have been lost to new competing products.
Opportunity costs are included as incremental costs when evaluating capital projects because they directly relates to a project, and theexpenses that are incurred in oder to improve a firm's production facility in order to invest in a project, investments in working capital that is related to a project in a direct way.
Flexibility of practice when applied to managerial accounting means that: Multiple Choice The information must be presented in electronic format so that it is easily changed. Managers must be willing to accept the information as the accountants present it to them, rather than in the format they ask for. Managerial accountants must be on call twenty-four hours a day. Managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations. Managers must be flexible with information provided in varying forms and using inconsistent measures
Answer:
Managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations.
Explanation:
Managerial accounting also known as cost accounting is an accounting technique focused on identification, measurement, analyzing, interpretation, and communication of financial information to managers for better decisions making and pursuit of the organization's goals.
Flexibility of practice when applied to managerial accounting means that managerial accounting systems differ across companies depending on the nature of the business and the arrangement of its internal operations.
This ultimately implies that, managerial accounting is specific to a particular business organization i.e the managerial accounting model used by a company would be different from the one used by another.
Average variable cost is equal to the: a. total variable cost divided by the level of output b. marginal cost divided by the marginal product of the variable input c. change in total variable cost divided by the change in output levels d. marginal cost divided by the average product of the variable input e. total variable cost divided by the level of variable input
Answer:
a. total variable cost divided by the level of output
Explanation:
We divide the total variable cost by the level of output to find the Average variable cost
therefore,
Average variable cost is equal to the total variable cost divided by the level of output.
Tiffany, who is married to Saul, takes out a $1,000,000 life insurance policy on Saul's life in 2008. Two years later they get divorced and Tiffany immediately remarries. Saul is not required to pay any alimony or child support to Tiffany after the divorce. In 2015, Saul dies. What will Tiffany collect on the life insurance policy, assuming she continued to pay all premiums due following their divorce?
a. $0, because Tiffany has no insurable interest.
b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
c. $1,000,000, because Tiffany had insurable interest in Saul's life at the time of his death.d. $0, because Saul was not ordered to pay alimony to Tiffany.
Answer:
b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
Explanation:
The correct answer is - b. $1,000,000, because Tiffany had insurable interest in Saul's life when the policy was purchased.
Kieso Company borrowed $740,000 for three months. The annual interest rate on the loan was 9%. Kieso's fiscal year ends on December 31. Kieso borrowed the $740,000 one month prior to the start of its current fiscal year and paid back the $740,000 plus interest two months into its current fiscal year. How much interest expense, if any, would Kieso report at the end of its last fiscal year and at the end of its current fiscal year
Answer:
Last Fiscal Year:
Interest Expense = $5550
Current Fiscal Year:
Interest Expense = $11100
Explanation:
According to the accrual basis of accounting, the expenses and revenues relating to a certain period should be recorded in that particular period whether of not they have been received. The fiscal year of Kieso ends on 31 December and as the loan was taken one month prior to the start of the current fiscal year, it was taken at the start of December of last fiscal year.
This means that the interest expense on loan relating to last December will be charged to the last fiscal year and the interest expense relating to January and February will be charged to the current fiscal year. The interest expense amount will be calculated as follows,
Last Fiscal Year = 740000 * 9% * 1/12 => $5550
Current Fiscal Year = 740000 * 9% * 2/12 => $11100