Answers
Answer: Coupon Direct Mail
Explanation:
From the information on the dashboard, Kai should invest in Coupon Direct Mail as a means of promoting the business. With this method, Kai attracts the highest number of clients at 150 per month which is larger than the other two methods.
Kai will also make the highest amount of profit of $2,000 using this method even after the costs of this method have been accounted for. The best option for Kai therefore is to use the Coupon Direct Mail promotional marketing effort.
Related Questions
Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $470 per month plus $101 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in May to be 12 jobs and 123 meals, but the actual activity was 9 jobs and 126 meals. The actual cost for catering supplies in May was $4,240. The spending variance for catering supplies in May would be closest to:
Answers
Answer:$163 which is favorable
Explanation:
Standard Cost per month is given as =Actual Quantity × Standard Rate
= Actual activity for number of jobs per month × Standard rate per job + Actual activity for meals× standard Rate per meal + Cost of Catering supplies
= 9 jobs×$101 per job + 126 meals × $24 per meal +$470
= $909 + $3,024 + $470 = $4,403
Also, Spending Variance = Actual cost of Catering in May- Standard cost of catering per month.
$4,240- $4,403= $163---- Favorable . This is because the actual cost for catering supplies is less than the Standard cost estimated.
Here I am again but am really in the mood;) Easy question: What hobby do you have?
Answers
Parent Co. invested $1,000,000 in Sub Co. for 25% of its outstanding stock. Sub Co. pays out 40% of net income in dividends each year.
Use the information in the following T-account for the investment in Sub to answer the following questions.
Investment in Sub Co.
1,000,000
110,000
44,000
A. How much was Parent Co.’s share of Sub Co.’s net income for the year?
Net income $Parent Co. invested $1,000,000 in Sub Co. for
B. How much was Parent Co.’s share of Sub Co.’s dividends for the year?
Dividends $
C. What was Sub Co.’s total net income for the year?
Total net income $
D. What was Sub Co.’s total dividends for the year?
Total Dividends $
Answers
Answer:
(A) $110,000
(B) $44,000
(C) $440,000
(D) $176,000
Explanation:
Parent corporation invested $1,000,000 in sub corpora tion for 25% of its outstanding stock
Sub corporation pays out 40% of net income of dividend each year
(A) Parent's Co's share of Sub's Co's net income for the year is $110,000
(B) Parent's Co's share of Sub's Co's share of dividend for the year is $44,000
(C) The total net income can be calculated as follows
= 110,000 ×100/25
= 11,000,000/25
= $440,000
(D) The total dividend for the year can be calculated as follows
= 440,000 ×40/100
= 440,000 × 0.4
= $176,000
What does ASME Stand for
Answers
Answer:
American Society of Mechanical Engineers
Answer:
American Society of Mechanical Engineers
Price inflation:
a. is relatively unimportant to individuals
b. is considered to be acceptable in the nation's quest for high levels of employment
c. encourages investment by reducing the uncertainty about future returns
d. is almost always due to financing wars
e.none of the above
Answers
Answer: encourages investment by increasing the uncertainty about future returns
Explanation:
Price inflation is the increase in general price level which brings about reduction in the purchasing power of economic agent such as the individuals or firms at a particular period of time.
Price inflation is important to individuals as it affects their decision making and it reduces their spending ability. Causes of inflation are due to excess demand, rise in production cost, rise in money supply etc. Financing wars isn't the main cause of inflation.
It should be noted that inflation encourages investment by reducing the uncertainty about future returns. This is because since prices of goods have already shoot up, investors will be encouraged as they'll like to invest in such economy as there'll be tendency to make maximize profit.
Old Time Savings Bank pays 3% interest on its savings accounts. If you deposit $1,800 in the bank and leave it there. Required:a. How much interest will you earn in the first year? b. How much interest will you earn in the second year? c. How much interest will you earn in the tenth year?
Answers
Answer and Explanation:
The computation of the interest in the following years are shown below:
a. For the first year
= Deposits made in the bank × (1 + interest rate) - deposits made in bank
= $1,800 × (1 + 3%) - $1,800
= $54
b. For the second year
= Deposits made in the bank × (1 + interest rate)^ - deposits made in bank × (1 + interest rate)
= $1,800 × (1 + 3%)^ - $1,800 × (1 + 3%)
= $55.62
c. For the tenth year
= Deposits made in the bank × (1 + interest rate)^n - deposits made in bank × (1 + interest rate)^n
= $1,800 × (1 + 3%)^10 - $1800 × (1 + 3%)^9
= $70.46
An investor purchases an original issue discount general obligation municipal bond (OID) on the offering and holds it to maturity. The IRS treats the accretion of the discount as
Answers
Answer:
not taxed
Explanation:
original issue discount which are new issue municipal bonds do not have their interest income taxed at the federal level by the IRS. An investor that purchases the municipal bond from the secondary market however would be accreted and have his income from the bond treated as ordinary income and would be taxed. But interest from original issue discount bonds are not taxed and are also not taxed when held to maturity
What type of contract is an agreement among persons to be governed?
Answers
Answer:
Social contract
Explanation:
The social contract is the contract which is made by the people who are living in a society in order to accomplish some task in terms of social benefits so that the everyone could get the benefit of it
Therefore in the given case, the social contract is an agreement that is made among the persons that should be governed and hence the same is to be considered
The inaccuracy of the grapevine has more to do with the message output than with the input.A. TrueB. false
Answers
Answer:
B
Explanation:
Grapevine is a form of informal communication in an organisation. Most of the information spread through the grapevine are gossips which are usually untrue. Thus, the inputs (false stories) are usually false
The Tamarisk Heritage Centre (a not-for-profit organization providing language and arts and crafts programs for children) received a lump-sum grant from the City of Moncton of $483,820 this year. The fixed costs of the Centre are expected to be $239,800. The average variable cost per child visit is expected to be $8.70, and the average fee collected per child visit is $3.80.What is the breakeven volume in patient visits? (Round answers to 0 decimal places, e.g. 5,125.)
Answers
Answer:
48,939 patients
Explanation:
Breakeven quantity = fixed cost / price – variable cost per unit
$239,800 / ( $8.70 - $3.80) = 48,939 patients
Pfister corporation reports $582 million in net income. This is the amount of cash available to distribute to shareholders.a. Trueb. False
Answers
Answer: False
Explanation:
The Net Income also takes into account cash that has not been paid yet from credit sales as well as other non-cash expenses. It is therefore not a measure of how much cash is available to be distributed to shareholders.
The amount that represents the cash available to distribute to shareholders is called the Free Cash Flow to the Firm (FCFF) and accounts for the actual amount of cash available in the company for disbursement.
The following information was taken from the segmented income statement of Restin, Inc., and the company's three divisions:
Restin Inc. Los Angeles Division Bay Area Division Central Valley Division
Revenues $750,000 $200,000 $235,000 $325,000
Variable operating expenses 410,000 110,000 120,000 180,000
Controllable fixed expenses 210,000 65,000 75,000 70,000
Noncontrollable fixed expenses 60,000 15,000 20,000 25,000
In addition, the company incurred common fixed costs of $18,000.
The profit margin controllable by the Central Valley segment manager is:
a. $32,000
b. $44,000
c. $50,000
d. $75,000
e. $145,000
Answers
Answer:
d. $75,000
Explanation:
total Los Angeles Bay Area Central Valley
Revenues $750,000 $200,000 $235,000 $325,000
Variable exp. $410,000 $110,000 $120,000 $180,000
Controllable $210,000 $65,000 $75,000 $70,000
fixed expenses
controllable $130,000 $25,000 $40,000 $75,000
profit margin
Noncontrollable fixed expenses and common fixed expenses are not included in the calculation of individual controllable profit margin.
Money is a crucial component of any presidential campaign.
Where do campaign funds come from?
Answers
Answer:
donors and from the contestant's personal funds
Explanation:
Remember, a campaign (political campaign) is a carefully planned activity with the sole aim of influencing the majority of the citizens qualified in a particular election to vote for a specific candidate.
Thus, there are planned fundraising events in which donors (members of the public, and organizations) contribute financially towards a presidential campaign. Also, the contestant may use his own funds to finance his campaign.
Currently, the dividend-payout ratio (DIE) for the aggregate market is 60 percent, the required return (k) is 11 percent, and the expected growth rate for dividends (g) is 5 percent.
a. Compute the current earnings multiplier.
b. You expect the DIE payout ratio to decline to 50 percent, but you assume there will be no other changes. What will be the P/E? c. Starting with the initial conditions, you expect the dividend-payout ratio to be constant, the rate of inflation to increase by 3 percent, and the growth rate to increase by 2 percent. Compute the expected P/E.
d. Starting with the initial conditions, you expect the dividend-payout ratio to be constant, the rate of inflation to decline by 3 percent, and the growth rate to decline by 1 percent. Compute the expected PIE.
Answers
Answer:
A. 10x
B.8.33x
C.8.57x
D.15x
Explanation:
a. Computation of current earnings multiplier
Using this formula
Current earnings multiplier=Dividend-payout ratio/(Required return-Expected growth rate for dividends)
Where,
Dividend-payout ratio(D/E)= 0.60
Required return (k) = 0.11
Expected growth rate for dividend (g)= 0.05
Let plug in the formula
Current Earning multiplier =0.60/(0.11−0.05)
Current Earning multiplier=0.60/0.06
Current Earning multiplier=10x
Therefore the Current Earning multiplier will be 10x
b. Calculation for the what will be the P/E
Using this formula
P/E=Expected decline D/E payout ratio /(Required return-Expected growth rate for dividends)
Where,
Expected decline D/E payout ratio=0.50
Required return (k) = 0.11
Expected growth rate for dividend (g)= 0.05
Let plug in the formula
P/E=0.50/(0.11-0.05)
P/E=0.50/0.60
P/E=8.33x
Therefore the P/E will be 8.33x
c. Computation for increase in expected P/E
Using this formula
Increase in Expected P/E=Dividend-payout ratio(D/E)/(Increase in rate of inflation - Increase in growth rate )
Let plug in the formula
Where,
Dividend-payout ratio(D/E)=0.60
Increase in rate of inflation =(0.11+0.03=0.14)
Increase in growth rate=(0.05+0.02=0.07)
Let plug in the formula
Increase in Expected P/E=0.60/[(0.11+0.03)-(0.05+0.02)]
Increase in Expected P/E=0.60/(0.14-0.07)
Increase in Expected P/E=0.60/0.07
Increase in Expected P/E=8.57x
Therefore the increase in expected P/E will be 8.57x
d .Computation for decline in the expected P/E
Using this formula
Decline in the expected P/E=Dividend-payout ratio(D/E)/(Decline in rate of inflation - Decline in growth rate )
Let plug in the formula
Where,
Dividend-payout ratio(D/E)=0.60
Decline in rate of inflation =(0.11-0.03=0.08)
Decline in growth rate=(0.05-0.01=0.04)
Let plug in the formula
Decline in the expected P/E=0.60/[(0.11-0.03) -(0.05-0.01)
Decline in the expected P/E=0.60/(0.08-0.04)
Decline in the expected P/E=0.60/0.04
Decline in the expected P/E=15x
Therefore the Decline in the expected P/E will be 15x.
Would you rather be a juvenile prosecutor or defense attorney? Explain your decision.
Answers
Answer:
a defense attorney instead
Explanation:
From a financial standpoint, a defense attorney would more likely make more money than a juvenile prosecutor because a defense attorney could charge up more for certain cases than been a juvenile prosecutor who wants to ensure someone is convicted.
Also, in terms of purpose, I do feel a defense lawyer could make more impact socially by defending his or her clients.
Which of the following is not an important question to ask when developing a data collection plan?
a. Who will be responsible for collecting the data?
b. What is the source of the data?
c. What is the reason for collecting the data?
d. Is it possible to make decisions without collecting data?
Answers
Answer:
d. Is it possible to make decisions without collecting data?
Explanation:
There is no need for such a question since you are already requested to begin developing a data collection plan.
However, questions related to who will be responsible for collecting the data are important as they enable you to properly plan. Also, knowing the source of the data and the reason for collecting the data are important questions.
Data collection plan is used to collect data in order to make decision while collecting the data, one should not ask whether the decision can be taken without collecting data.
What is a data collection plan?It is a thoughtful approach used to collect the baseline data as well as data which guides to the root cause. The plan includes questions like: How, When, Where and From whom the data is collected.
The questions not asked while developing a data collection plan is whether it's possible to make decisions without collecting data.
Therefore, option d appropriately describes the above statement.
Learn more about data collection plan here:
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According to the law of supply, assuming other factors are held constant
a. as the price of bread increases, the quantity of bread supplied will decrease
b. as the supply for bread increases, the price of bread will also increase.
c. as the price of bread increases, the quantity of bread supplied will increase.
Answers
Answer:
c. as the price of bread increases, the quantity of bread supplied will increase.
Explanation:
According to the law of supply we find out that there is a direct relationship existing between price of a good and quantity no supplied of same good. The law states that holding all factors fixed an increase in price brings about a resultant increase in quantity supplied. With this in mind, as the price of bread soars or goes up, the quantity of bread supplied would also increase too.
Roley Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts.
A. On July 1, Roley purchased $60,000 of inventory, terms 2/10, n/30, FOB shipping point. Roley paid freight costs of $1,200.
B. On July 3, Roley returned damaged goods and received credit of $6,000.
C. On July 10, Roley paid for the goods.
Prepare all necessary journal entries for Roley.
Answers
Answer:Please see answers in explanation column
Explanation:
1A)To record amount payable for purchase of goods
Date Account Title Debit Credit
July 1 Purchase $60,000
Accounts Payable $60,000
Freight in $1,200
Cash $1,200
B)To record amount on damaged goods
Date Account Title Debit Credit
July 3 Accounts Payable $6,000
Return of Purchase $6,000
C)Journal to record payment of goods
Date Account Title Debit Credit
July 10 Accounts Payable $54,000
Purchase Discount $1,080
Cash $52,920
Calculations
Accounts payable Purchased Price - price of returned goods = 60000-6000 = $54,000
Discount on Purchases if paid within 10 days = 2% x $54,000 = $1,080
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 Inventory Beginning EndingRaw materials $9,180 $17,480Work in process 5,670 7,610Finished goods 9,300 6,430Costs incurred: raw materials purchases $55,020, direct labor $51,740, manufacturing overhead $23,300. The specific overhead costs were: indirect labor $6,510, factory insurance $4,700, machinery depreciation $4,380, machinery repairs $1,990, factory utilities $3,740, and miscellaneous factory costs $1,980. Assume that all raw materials used were direct materials.Prepare the cost of goods manufactured schedule for the month ended June 30, 2017
Answers
Answer:
cost of goods manufactured schedule
Raw Materials ($9,180 + $55,020 - $17,480) $46,720
Direct Labor $51,740
Manufacturing overheads :
indirect labor $6,510
factory insurance $4,700
machinery depreciation $4,380
machinery repairs $1,990
factory utilities $3,740
miscellaneous factory costs $1,980
Add Opening Work In Process $5,670
Less Closing Work In Process ($7,610)
Cost of goods manufactured $119,800
Explanation:
Cost of goods manufactured schedule shows a summary of results (cost) obtained from manufacturing activity during the production period.
Billy Penny is trying to determine how many units of two types of cordless telephones to produce each day. One of these is the standard model, while the other is the deluxe model. The profit per unit on the standard model is $90, while the profit per unit on the deluxe model is $120. Each of these requires 30 minutes of assembly time, while the Deluxe model requires 35 minutes of assembly time. The Standard model requires 10 minutes of inspection time, while the Deluxe model requires 15 minutes of inspection time. The company must fill an order for 6 Deluxe models. There are 450 minutes of assembly time and 180 minutes of inspection time available each day.
Required:
Formulate as an LP, solve using QM, then interpret your output.
Answers
Answer:
The optimal solution is 3 standard telephones and 10 deluxe telephones for a maximum profit of $1,470.
Explanation:
we have to maximize profit following the equation 90s + 120d
the constraints are:
30s + 35d ≤ 450
10s + 15d ≤ 180
d ≥ 6
s ≥ 0
using solver, the optimal solution is 3 standard telephones and 10 deluxe telephones for a maximum profit of $1,470.
we can check our solution:
(90 x 3) + (120 x 10) = 1,470
(30 x 3) + (35 x 10) = 440 ≤ 450
(10 x 3) + (15 x 10) = 180 ≤ 180
10 ≥ 6
3 ≥ 0
During its 1st month of business, Noodlecake's cash increased by receiving $5,000 from issuing common stock to its owners, borrowing $2,000 from bank, and collecting $3,000 from its customers. Its cash decreased by paying $2,000 to its enmployees and suppliers and $3,000 for the purchase of equipment. On its statement of cash flows, Cash Provided by Operating Activities equals $______ Cash from Investing Activities equals $________ Cash from Financing Activities equals $_______ Be sure to use and the Change in Cash equals $_______ parentheses around the amount if it is a cash outflow, e.g. $(1,000)
Answers
Answer:
Noodlecake
On its statement of cash flows, Cash Provided by Operating Activities equals $__1,000____ Cash from Investing Activities equals $__(3,000)______ Cash from Financing Activities equals $_7,000______ and the Change in Cash equals $_5,000______ Be sure to use parentheses around the amount if it is a cash outflow, e.g. $(1,000)
Explanation:
a) Data and Calculations:
Financing activities:
Common stock $5,000
Bank loan 2,000
Net cash $7,000
Operating activities:
Cash from customer $3,000
Cash to employees (2,000)
Net cash $1,000
Investing activities:
Equipment ($3,000)
Net cash from cash flows = $5,000
The net cash from cash flows or the change in cash flows is the summation of the changes in the operating, investing, and financing activities of Noodlecake during the period under review. It shows by how much the cash has increased or decreased when compared to the beginning balance, which can be zero as in this case.
Which of the following best describes the primary role of auditors in financial reporting? A. Consultants that are hired by company management to advise on key matters related to competition, product pricing, employee retention, and financial reporting strategies. B. Key employees of the company that actively participate on the management team in strategic planning, product development, and financial reporting. C. Government employees assigned by local officials to ensure accurate financial reporting and operational integrity by the company. D. Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles
Answers
Answer:
D. Independent party hired by management to express a professional opinion of the extent to which the company’s financial reporting is in compliance with generally accepted accounting principles.
Explanation:
I just finish my quiz on it.
'Auditors' are the 'individuals who conduct an independent review and examination of system records and activities in order to test the adequacy of the effectiveness of data security and processes.'
The statement that most adequately displays the central role of auditors in the 'financial reporting' would be:
D). "Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles."
The responsibilities of an auditor include:
Review and monitoring of the financial records to prevent any discrepancy. Ensure that the organization follows all the standard principles and policies. Prevent it from any kind of fraud or risk. Assist in saving costs. Ensure the operations are being run effectively. Preparation of reports and data charts etc.Thus, option D correctly goes with the above-stated duties that he/she is an individual who looks after that the company is in proper alliance with the set principles.
Learn more about 'Financial Reporting' here:
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The team wanted to prevent customers from mistakenly choosing the hottest hot sauce and risking injury.Which of the following would be a way to Mistake-Proof the process and still maintain a fun atmosphere? a) Have cashiers inspect each purchase and ask patrons if they know which hot sauce they’ve chosen b) Remove the hottest hot sauce from the table of condiments c) Put mild hot sauce in the hottest hot sauce bottle d) Put the hottest hot sauce in a container with a fire-breathing dragon on the lid
Answers
Answer:
d) Put the hottest hot sauce in a container with a fire-breathing dragon on the lid
Explanation:
This is a good Mistake-Proof process for the hottest sauce because, the fire-breathing dragon helps to crate the image of the content of the container being very hot. At the same time, the children will like the dragon drawing thereby creating a fun atmosphere for them while eating.
You have just made your first $5,900 contribution to your retirement account. Assume you earn a return of 11 percent per year and make no additional contributions. What will your account be worth when you retire in 36 years? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value $ What if you wait 10 years before contributing? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) Future value $
Answers
Answer:
$252,626.70
$88,971.20
Explanation:
The formula for calculating future value:
FV = P (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
Value in 36 years :
$5,900 (1.11)^36 = $252,626.70
Value in 26 (36 -10) years :
$5,900 (1.11)^26 =$88,971.20
Open-ended questions are the best way to gain more information about a customer's needs and how you can help meet them during their visit. What questions below are good examples of open-ended questions? Select all that apply.
A. Can I help you with something today?
B. What are you looking for in your outdoor patio?
C. How are you?
D. What brings you in today?
Answers
Answer: The answer is given below
Explanation:
Open ended questions are the questions whereby their answers vary according to the person, and usually leads to a longer conversation.
Examples are:
•™Can I help you with something today?
• What are you looking for in your outdoor patio?
•. What brings you in today
Makoto Corp. prepared the following reconciliation of income per books with income per tax return for the year ended December 31, 2021: Book income before income taxes 2,700,000 Add temporary difference Installment revenue which will reverse in 2022 240,000 Deduct temporary difference Depreciation expense which will reverse in equal amounts in each of the next four years (960,000) Taxable income 1,980,000 Makoto's effective income tax rate is 25% for 2021. What amount should Makoto report in its 2021 income statement as the current provision for income tax expense?
Answers
Answer:
Income tax expense 567,000 debit
income tax liability 151,200 credit
income tax payable 415,800 credit
Explanation:
Income before taxes: 2,700,000
unfavorale temporary difference 240,000
favorable temporary difference 960,000
taxable income 1,980,000
income tax payable : 1,980,000 x 21% = 415,800
income tax expense: 2,700,000 x 21% = 567,000
960,000 - 240,000 = 720,000 net
as we are paying fewer taxes now, we are going to pay more in the future.
Therefore, we have a tax liaiblity:
720,000 x 21 = 151,200
All of the following statements regarding a business segment are true except:_______a. A business segment is a part of a company's operations that serves a particular product line. b. A segment has assets, liabilities, and financial results of operations that can be distinguished from those of other parts of the company. c. A company's gain or loss from selling or closing down a segment is reported separately The income tax effects of a discontinued segment are combined with income tax from continuing operations. d. A segment's income for the period prior to the disposal and the gain or loss resulting from disposing of the segment's assets are reported separately.
Answers
Answer: The income tax effects of a discontinued segment are combined with income tax from continuing operations.
Explanation:
A business segment is part of a company's operations which serves a particular product line and it should be noted that the segment has assets, liabilities, and financial results of operations which can be differentiated from those of other parts of the company.
The option that the income tax effects of a discontinued segment are combined with income tax from continuing operations is not true.
Vervet County levies a real property tax based on the following schedule.
Rate Assessed value
3% $-0- to $250,000
+ 1% $250,001 and above
Bilex Inc. owns real property valued at $629,800. Compute Bilex's tax on this property.
A) $13,798
B) $7,500
C) $6,298
D) None of the choices are correct.
Answers
Answer:
D. None of the above
Explanation:
Computation for the tax on this property
Property Tax = [(3% × $250,000] + [1% ×($629,800-$250,000)]
Property Tax= $7,500+ $3,798
Property Tax= $11,298
Therefore the tax on this property will be $11,298 which means that the choices listed above are not correct.
The time after your pitch deck presentation should be used for______.a. questions and answers.b. presenting other business ideas you have.c. giving participation gifts.d. you should leave once you have finished your pitch deck presentation
Answers
Answer:
a. questions and answers
Explanation:
A pitch deck is a presentation that is related for starting up your business so that the coming investors should know about your business. It involves various slides that help each and everyone to understand your business idea
It is a short summary that demonstrates the idea of your business, the vision of your startup
Now the time that is to be left after pitch deck presentation is generally to be used for questions and answering and the same is to be considered
Hence, the correct option is a.
Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide an example of a departmental income statement in which at least three shared indirect costs are divided according to three different appropriate allocation bases.
Answers
Answer with Explanation:
Following are the benefits of using departmental Income Statements:
Gives an understanding of where the company lacks efficiencyHelps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.The above benefits makes the department income statements important for the managerial use.