Answer:
Direct expenses.
Explanation:
The departmental contribution is determined by deducting the direct expense from the amount of sales
In mathematically,
The following formula should be used
Departmental contribution = Department revenues - direct expense
Here The expenses to be - rent, utilities, taxes, insurance, etc
ANd, It is arrive after paying off the direct expenses that related to the overhead.
Brian lives in San Francisco and runs a business that sells guitars. In an average year, he receives $704,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $404,000; he also pays wages and utility bills totaling $286,000. He owns his showroom; if he chooses to rent it out, he will receive $3,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Brian does not operate this guitar business, he can work as an accountant, receive an annual salary of $20,000 with no additional monetary costs, and rent out his showroom at the $3,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Jake's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
Implicit Cost Explicit Cost
The wholesale cost for the guitars that Charles pays
the manufacturer.
The wages and utility bills that Charles pays.
The salary Charles could earn if he worked as an accountant.
The rental income Charles could receive if he chose to rent
out his showroom .
Complete the following table by determining Jake's accounting and economic profit of his guitar business.
Profit (Dollars)
Accounting Profit
Economic Profit
If Jake's goal is to maximize his economic profit, he___stay in the guitar business because the economic profit he would earn as an accountant would be___.
Answer:
The wholesale cost for the guitars that Charles pays the manufacturer - Explicit Cost
The wages and utility bills that Charles pays. - Explicit Cost
The salary Charles could earn if he worked as an accountant. - Implicit Cost
The rental income Charles could receive if he chose to rent
out his showroom - Implicit Cost
$14000
$-9000
should not
$6,000
Explanation:
Accounting profit= total revenue - explicit cost
Total revenue =price x quantity sold
Explicit cost includes the amount expended in running the business.
They include rent , salary and cost of raw materials
$704,000 - ($404,000 + $286,000) = $14000
Economic profit = accounting profit - implicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.
Implicit costs = 20,000 + 3000 = 23,000
14,000 - 23,000 = -9000
Sheridan Company just began business and made the following four inventory purchases in June: June 1 144 units $ 952 June 10 184 units 1472 June 15 184 units 1564 June 28 144 units 1296 $ 5284 A physical count of merchandise inventory on June 30 reveals that there are 194 units on hand. Using the FIFO inventory method, the amount allocated to ending inventory for June is
Answer:
$210,688
Explanation:
The LIFO method of accounting for inventory involves issuing the last items purchased first and those purchased first are issued last hence the acronym LIFO which means last in first out
Given that June 1 144 units $ 952 June 10 184 units 1472 June 15 184 units 1564 June 28 144 units 1296 $ 5284 A physical count of merchandise inventory on June 30 reveals that there are 194 units on hand
Total number purchased during the month
= 144 + 184 + 184 + 144
= 656 units
Using the last in first out method, the 194 units left at the end would be made up of the 144 units purchased on June 1 and 50 units purchased on 10 June hence the amount allocated to ending inventory for June is
= 144 * $952 + 50 * $1472
= $210,688
Tell me about time when you made a mistake how did you find it and what did you do to correct it
Answer:
Briefly explain what the mistake was, but don't dwell on it.Quickly switch over to what you learned or how you improved, after making that mistake.You might also explain the steps you took to make sure that the mistake never happened again.Acoma Co. has identified one of its cost pools to be quality control and has assigned $140,400 to that pool. Number of inspections has been chosen as the cost driver for this pool; Acoma performs 30,000 inspections annually. Suppose Acoma manufactures two products that consume 12,600 (Product 1) and 17,400 (Product 2) inspections each.
Assume that Acoma manufacturers only the two products mentioned and they consume 100 percent of the company’s quality inspections. Using activity proportions, determine how much quality control cost will be assigned to each of Acoma’s product lines.
Answer:
Acoma Co.
Product 1 Product 2
Quality control cost assigned $58,968 $81,432
Explanation:
a) Data and Calculations:
Cost of quality control = $140,400
Number of annual inspections = 30,000
Cost per inspection = $4.68 ($140,400/30,000)
Product 1 Product 2 Total
Number of inspections 12,600 17,400 30,000
Proportion of inspections 42% 58% 100%
Quality control cost assigned $58,968 $81,432 $140,400
($4.68 * 12,600) ($4.68 * 17,400)
(42% * $140,400) (52% * $140,400)
An oligopolistic market structure is distinguished by several characteristics, one of which is either similar or identical products. Which of the following are other characteristics of this market structure?
a. Market control by many small firms
b. Difficult entry
c. Mutual interdependence
d. Market control by a few large firms
e. Mutual dependence
Answer:
The correct option is d. Market control by a few large firms.
Explanation:
An oligopolistic market structure can be described as a market structure in which there is a small number of large firms, and none of the large firms can prevent the other large firms in the market from wielding great power.
An oligopolistic market structure is there a market that is dominated and controlled by by a few large firms.
Therefore, the correct option is d. Market control by a few large firms.
g is considering eliminating the fruit product line. If this line is eliminated, Orange Company will be able to eliminate $74,000 of total fixed costs. By how much would this business decision increase operating income
The business decision increase the operating income by $16,000
Calculation of impact of net operating income:
The following formula should be used:
= Contribution margin lost + fixed cost savings
= -$58,000 + $74,000
= $16,000
Since fruit product contributed $58,000 so here we eliminated it due to this it has a loss of $58,000 for the orange company
Therefore we can conclude that that the business decision increase the operating income by $16,000
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In 4-6 sentences, discuss how understanding the concept of price elasticity of demand is useful for a business owner/firm operating in any market structure. Copying the definition or restating the definition of elasticity will result in loss of points. (What does price elasticity of demand tell the firm in terms
Answer:
The concept of price elasticity is important to a firm because it would help a firm determine how to change prices in order to increase total revenue
For example, if a firm has an elastic demand, if price is increased, the quantity demanded would fall. The fall in demand would be greater than the increase in price. As a result, total revenue would fall. If price is reduced, the quantity demanded would increase.. the increase in demand would be greater than the reduction in price. Total revenue would increase
If on the other hand, demand is inelastic, if price is increased, total revenue increases. If price is reduced, total revenue reduces
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
Infinitely elastic demand is perfectly elastic demand. Demand falls to zero when price increases
Perfectly inelastic demand is demand where there is no change in the quantity demanded regardless of changes in price.
Doanh nghiệp được trích trước tiền lương nghỉ phép của toàn bộ người lao động trong công ty. Đung hay sai
Answer:
sai
Explanation:
Answer:
Explanation:
Đúng
The three goals of executive compensation are to align management’s interest with the shareholders, to keep management from leaving in bad times, and to refrain from giving too much of shareholder profits to management.
a. True
b. False
At the end of 2010 Jarrett Corp. developed the following forecasts of net income:
Year Forecasted Net Income
2011 $20,856
2012 $22,733
2013 $24,552
2014 $27,252
2015 $29,978
Management believes that after 2015 Jarrett will grow at a rate of 7% each year. Total common shareholders' equity was $112,768 on December 31, 2010. Jarrett has not established a dividend and does not plan to paying dividends during 2011 to 2015. Its cost of equity capital is 12%.
Required:
Compute the value of Jarrett Corp. on January 1, 2011, using the residual income valuation model.
Answer:
$83,057.11
Explanation:
The value of the company is the present value of its residual income where the residual income is the net income in each year minus the implicit cost of capital
residual income=net income-(cost of equity capital*beginning shareholders' equity)
2011:
residual income=$20,856-( $112,768*12%)
residual income=$7323.84
stockholders' equity at the end of 2011=$112,768+$20,856=$133,624
2012
residual income=$22733-( $133624 *12%)
residual income=$6,698.12
stockholders' equity at the end of 2012=$133,624+$22733=$156,357
2013:
residual income=$24552-(12%*$156357)
residual income=$5,789.16
stockholders' equity at the end of 2013=$156,357+$24552=$180,909
2014;
residual income= $27252-(12%*$180909)
residual income=$5,542.92
stockholders' equity at the end of 2014=$180,909+$27252=$208,161
2015:
residual income=$29,978-(12%*$208161)
residual income=$4,998.68
Terminal value of residual income=2015 residual income*(1+terminal growth rate)/(cost of equity-terminal growth rate)
Terminal value of residual income=$4,998.68*(1+7%)/(12%-7%)=$106,971.75
value of the company=$7323.84/(1+12%)^1+$6,698.12/(1+12%)^2+$5,789.16 /(1+12%)^3+$5,542.92/(1+12%)^4+$4,998.68/(1+12%)^5+$106,971.75/(1+12%)^5
value of the company=$83,057.11
Dobles Corporation has provided the following data from its activity-based costing system:
Activity Cost Pool Total Cost Total Activity
Assembly $228,060 18,000 mahcine hours
Processing orders $34,068 1200 orders
Inspection $125560 1720 inspection hours
The company makes 420 units of product D28K a year, requiring a total of 460 machine-hours, 80 orders, and 10 inspection-hours per year. The product's direct materials cost is $48.96 per unit and its direct labor cost is $25.36 per unit.
According to the activity-based costing system, the unit product cost of product D28K is closest to:
a. $95.34 per unit
b. $93.60 per unit
c. $74.32 per unit
d. $89.93 per unit
Answer:
Hence the correct option is option (a) i.e. $95.34 per unit.
Explanation:
Cost of 420 units of D28K product = 460 machine hour cost + 80 order cost + 10 inspection hour cost + 420 direct materials cost + 420 direct labor cost.
18000 machine hours = 228060
so 460 machine hours = 228060 x 460 /18000 = 5828.2
1200 orders = 34068
80 orders = 80 x 34068 / 1200 = 2271.2
1720 inspection hours = 125560
10 inspection hours = 10 x 125560/1720 = 730
So cost of 420 units of D28 products = 5828.2 + 2271.2 + 730 + 420 x 48.96 + 420 x 25.36
=40043.8
So cost of 1 D28K product = 40043.8 / 420 = 95.34
Sellograph Corporation reports sales of $10 million for Year 2, with a gross profit margin of 40%. 20% of Sellograph's sales are on credit. Year 1 Year 2 Accounts receivable $ 150,000 $ 170,000 Inventory 900,000 1,000,000 Accounts payable 1,100,000 1,200,000
Accounts receivable days outstanding at the end of Year 2 is closest to:___________
a. 30.6 days.
b. 26.0 days.
c. 27.0 days.
d. 6.1 days.
Answer: b.
Explanation:
Chad is the founder of a firm producing self-driving vehicles. Because the industry is so new and chaotic, Chad favors a top-down strategic planning approach in which he exerts strong control over all aspects of the business, from product development and design to manufacturing and marketing. What is wrong with this scenario
Answer:
a. The self-driving vehicle industry is changing too much for the top- down approach to be effective.
Explanation:
The top-down strategic planning approach involves the company goals and their subdivisions. The aim is to gradually move from the top to down in a specific hierarchy. This approach lies on higher authority and in contrast the bottom-up strategy favors decision making that gives complete staff a voice.out line four roles played by entrepreneurs in Kenya
Answer:
To be a successful entrepreneur it is necessary for the individual to develop essential communication skills, creativity, innovation and the ability to deal with the risks inherent in the business.
A well-positioned and competitive business is one that manages to create value for consumers by offering products and services that satisfy their wants and needs.
In Kenya, entrepreneurship has stood out as a means for citizens to seek employment and income opportunities, especially in opening up trade in products and services.
Entrepreneurship helps a country to develop by moving the economy and improving the population's quality of life, so it is necessary to have government incentives and information available on the subject.
The three key pieces of information that are stated on a bond certificate are the: A. stated interest rate, the face value of the bond, and the maturity date. B. market interest rate, the price of the bond, and the maturity date. C. interest payment, the face value of the bond, and the credit rating of the company. D. interest payment, the issue price of the bond, and the credit rating of the company.
A bond certificate should contain stated interest rate, the face value of the bond, and the maturity date.
A bond certificate simply refers to a certificate of debt which is usually issued either by the government or a corporation. The main idea behind the issuing of a bond certificate is to raise money.
The bond certificate states the bond details e.g. the bond par value, interest rate, maturity date etc.
In conclusion, the correct option is A.
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Assume that a firm had shareholders' equity on the balance sheet at a book value of $1,500 at the end of 2010.During 2011 the firm earns net income of $1,900,pays dividends to shareholders of $200,and issues new stock to raise $500 of capital.The book value of shareholders equity at the end of 2011 is:_______.
A) $2,750
B) $250
C) $1,450
D) $3,700
Answer:
The book value of shareholders equity at the end of 2011 is:_______.
D) $3,700.
Explanation:
a) Data and Calculations:
Beginning shareholders equity book value = $1,500
Net income during 2011 = 1,900
Dividends paid to shareholders (200)
Issuance of new stock 500
Ending shareholders equity book value = $3,700
b) The book value of equity at the end of 2011 is equal to the book value at the beginning of 2011 plus net income generated during 2011, issuance of new stock, minus dividends paid to shareholders.
Which assertion relates to the following statement? "Assets, liabilities, and equity interests are included in the financial statements at appropriate amounts
Answer: Valuation
Explanation:
The assertion that assertion relates to the statement that Assets, liabilities, and equity interests are included in the financial statements at appropriate amounts is the valuation assertion.
According to the assertion of accuracy and valuation, it simply means that all the figures that are presented in a financial statement are known to be accurate and are based on proper valuation of the assets, the liabilities and the equity balances
In 2012, Wingen Inc. sold 325,000 units at $8 each .Sales volume is expected to increase by 15 percent in 2013 while the price of each unit is expected to decrease by 15 percent. the expected sales revenue for 2013 is a. $373,750 b.$2,541,500 c.$1,878,500 d.$2,990,000
Answer:
$2541500
Explanation:
Given :
2012 :
Units sold = 325,000
Price per unit = $8
2013 :
Projected increase in volume = 15%
Projected decrease in price = 15%
Expected revenue = sales price * volume sold
Volume in 2013:
Projected Unit sold in 2013 = (1 + 0.15) * 325000 = 373750
units
Projected Price in 2013 = (1 - 0.15) * Price in 2012 = (1 - 0.15) * $8 = $6.80
Expected revenue = $6.80 * 373750 = $2541500
explain how the looting of shops and malls will affect businesses in terms of the relationship between social responsibility and triple bottom line
When people loot shops it shows that they are irresponsible and it goes on to destroy the image of the society they live, destroys a business by taking away their means of making profit.
Social responsibility can be described as the civic and ethical duties that citizens of a country owe to the nation they live.
The three bottom principle has the profit, people and the planet. The looting of shops draws a line between consumers relationships and their social responsibility.
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Reynolds Manufacturers Inc. has estimated total factory overhead costs of $136,400 and expected direct labor hours of 12,400 for the current fiscal year. If Job 117 incurs 1,110 direct labor hours, Work in Process will be debited and Factory Overhead will be credited for a.$12,210 b.$136,400 c.$68,200 d.$1,110
1. Managerial Internal (Inside) accounting information reports are generally prepared for A) Stockholders or Shareholders B) Creditors, Lenders, or Banks C) Managers. D) Regulatory Agencies, like the IRS or SEC
Answer:
C) Managers
Explanation:
Managerial accounting is the accounting that concern with the information received via financial accounting inside the organization. The accouting reports that could be applied for planning, decision making and measuring the performance of the company
So if the managerial accounting information reports are prepared internally so it is for the managers to analyze the overall performance of the organization
Hence, the option c is correct
The following information relates to last year's operations at the Legumes Division of Gervani Corporation: Minimum required rate of return 12% Return on investment (ROI) 15% Sales $ 900,000 Turnover (on operating assets) 3 times What was the Legume Division's net operating income last year
Answer: $45000
Explanation:
Firstly, the operating asset will be calculated which will be:
Operating asset = Sales / Turnover
= 900,000/3
Operating assets = $300,000
Then, the net operating income will be: Return on investment × Operating assets
Net operating income = 300,000 × 15%
= 300,000*0.15
= $45,000
Therefore, Legume Division's net operating income last year is $45000
CONCILIACIONES BANCARIAS
Answer:
ehejejeuywnfwwjwjwhwjegegjshshstehshstejeheteyejuw7yo was a member in its first two seasons of its own and the first team in its history to win the world series 65in 2of 2in 3733333inches the world cup is in its second season as a team that
The following information is available for a company's cost of sales over the last five months. Month Units sold Cost of sales January 470 $ 33,800 February 870 $ 40,500 March 1,950 $ 52,500 April 2,470 $ 64,500 Using the high-low method, the estimated total fixed cost is: Multiple Choice $26,586. $106,344. $53,172. $17,533. $30,700.
TC Units
$64,500 (High) 2,470
} $30,700 } 2000
$33,800( Low) 470
VC per Unit = 30 700 ÷ 2000 = $15.35
when 470 units are sold,( substitute vc per unit = 15.35)
TC = FC + VC
33, 800 = FC + ( 15.35× 470)
FC = $ 26 586
Repetitive sequences of activities that express and reinforce the key values of the
organization, identify important goals and people are referred to as
A) rituals.
B) stories.
C) material symbols.
D) cultural typologies.
Repetitive sequences of activities that express and reinforce the key values of the organization, identify important goals and people are referred to as A) rituals.
For an organization, these rituals are called organizational rituals.
Organizational rituals are repetitive activities and behaviors which an employee is expected to undertake in the organization because these activities and behaviors demand clear performance.
As standardized or predictable behaviors and activities, organizational rituals are required to be performed by all employees in order to perpetuate the values that the organization has accepted as means of achieving its goals.
Organizational rituals align an individual employee with others in the organization, thereby creating a shared experience and a sense of common identity that ensure the organization's survival.
Thus, rituals help to ensure that an organization is maintained for its mission.
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Data collection tool of a qualitative research
Answer:
The methods of qualitative data collection most commonly used in health research are document study, observations, semi-structured interviews and focus groups.
Why My LinkedIn Lead Generation Is Failing?
Answer:
Your LinkedIn lead generation is failing due to the following mistakes:
Mistake 1. Not Choosing the Right LinkedIn Automation ToolMistake 2. Sending and Sharing Self-Promotional ContentMistake 3. Not Personalizing ContentMistake 4. Not Segmenting LeadsMistake 5. Not sending Follow-UpsMistake 6. Not Paying Attention To StatsThere are tons of big and small mistakes that marketers make when it comes to LinkedIn lead generation. However, the worst thing is to not learn from those mistakes and keep repeating the mistakes.
Nichols Company uses the percentage of receivables method for recording bad debts expense. The month-end accounts receivable balance is $250,000 and credit sales during the month were $1,000,000. Management estimates that 4% of accounts receivable will be uncollectible. The Allowance for Doubtful Accounts has a credit balance of $2,500 before adjustment. The adjusting entry that Nichols must make includes: a. a credit to the allowance for $7,500. b. a credit to the allowance for $30,000. c. a debit to bad debt expense for $10,000. d. a debit to bad debt expense for $40,000.
Answer: a. a credit to the allowance for $7,500
Explanation:
Estimated Bad Debt = Balance on Account receivable x bad Debt loss rate = $250,000 x 4% = $10,000
Allowance for doubtful accounts with a credit balance of $2,500
Allowance for Bad debts expense =Estimated Bad Debt - Credit balance Allowance for doubtful accounts = $10,000 - $2,500 = $7,500
Account titles and explanation Debit Credit
Bad Debt Expense $7,500
Allowance for Doubtful Accounts $7,500
What happens in the foreign exchange market when a surplus of dollars exists? When there is a surplus of dollars in the foreign exchange market, _______.
Answer:
prices will decrease
Explanation:
The forex market is balanced when there exists when the quantity supply of any currency is equal to the quantity demanded. If the market has a surplus or shortages the rates will adjust accordingly.The parts can be purchased from an outside supplier for only $28 each. The space in which the parts are now produced would be idle and fixed production costs would be reduced by one-fourth. If the parts are purchased from the outside supplier, the annual impact on the company's operating income will be:________
a) $24,000 increase
b) $24,000 decrease
c) $56,000 increase
d) $56,000 decrease
Answer:
d) $56,000 decrease
Explanation:
In the case when parts are produced by sharp corporation
Given that
Total cost per unit = $36
Total cost = Total cost per unit × parts
= $36 × 8,000
= $288,000
Now
If the parts are Purchased by the outside supplier, fixed costs decreased by one-fourth.
So, three-fourth fixed costs should be incurred.
Now
Total cost per unit = Purchase Price + three - fourth fixed costs
= $28 + (3 ÷4) × $20
= $28 + $15
= $43
Now
Total cost = $43 × 8,000
= $344,000
So, the operating income is
= $288,000 - $344,000
= $56,000 decrease
