Answer:
$5,095.10
Explanation:
The computation of the total monthly fixed overhead cost using the high-low method is given below:
But before that the variable cost per unit is
Variable cost per unit is
= [Total cost at highest level - Total cost at lowest level] ÷ [Highest level - Lowest level]
= ($8,921 - $7,841) ÷ (2,834 - 2,034)
= $1.35
Now
The total fixed cost for the month is
= $8921 - (1.35 × 2,834)
= $5,095.10
Complete the following statements with one of the terms listed here. You may use a term more than once, and some terms may not be used at all. Prime costs Cost objects Product costs Assigned Direct costs Fringe benefits Period costs Assets Cost of goods sold Indirect costs Conversion costs Total costs
Answer:
Follows are the solution to this question:
Explanation:
The Conversion costs applied on the direct materials into finished products is transformation price.The Period costs include costs for research and innovation, marketing, allocation, and also customer service.The direct material, extra production overhead, is equivalent to Prime costs.In the installation of a car metal, tires, motors, poling, floorboards, and dashboards have been used. Even though manufacturing companies can trace the cost to multiple ones or batches of automobiles for components (such as cargo and importation duties), such expense to cars are considered Direct costs.The costs are the costs, that can be tracked instantly to a(n) Cost objects are Direct costs.Initially, Product costs are known to income statement Assets.A much less accurate cost figure for both the Cost Object is allocated to the Assigned.Indirect costs could not be traced directly to Cost objects.The prices of the entire supply (Total costs) chain comprise the prices of all resources.The next dividend payment by Hoffman, Inc., will be $2.65 per share. The dividends are anticipated to maintain a growth rate of 4.5 percent forever. If the stock currently sells for $43.15 per share, what is the required return
Answer:
10.6%
Explanation:
The next dividend payment for Hoffman is $2.65
The growth rate is 4.5%
The stock currently sells at $43.15
The required return can be calculated as follows
= 2.65/43.15 + 4.5/100
= 0.0614 + 0.045
= 0.1064× 100
= 10.6%
Hence the required return is 10.6%
On discovering an improperly adjusted drill press, Jack Joyner, Director of Quality Control, ordered an inspection of every fifth casting drilled during the evening shift. Less than 1% of the sampled castings were defective; so, Jack released the evening shift's production to assembly. This is an example of _______________.
Answer:
Inferential statistics
Explanation:
Here, every fifth casting drill during evening shift is selected to identify the defectiveness of the casting. That is, every drill is considered as the sample. It is clear that the inference about the population is made. That is, less than 1% of the casting was defective, hence, it is concluded that is an example of inferential statistics
Sheffield Corp. purchased land as a factory site for $1345000. Sheffield paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5080 were paid for title investigation and making the purchase. Architect's fees were $46500. Title insurance cost $3500, and liability insurance during construction cost $3800. Excavation cost $15660. The contractor was paid $4200000. An assessment made by the city for pavement was $9500. Interest costs during construction were $257000. The cost of the land that should be recorded by Sheffield Corp. is
Answer:
$1,470,980
Explanation:
Calculation for what The cost of the land that should be recorded by Sheffield Corp. is
Using this formula
Cost of the land=Purchased land+ Payment for buildings on the land-Salvage sold+Legal fees+Insurance cost+Assessment cost
Let plug in the formula
Cost of the land=$1,345,000 + $116,000 - $8,100 + $5,080 + $3,500 + $9,500
Cost of the land= $1,470,980
Therefore The cost of the land that should be recorded by Sheffield Corp. is $1,470,980
Does iced tea or hot tea brew faster? Im starting a tea buisness
Answer:
Hot tea brews faster than iced
Explanation:
You are preparing pro forma financial statements for 2017 using the percent-of-sales method. Sales were $100,000 in 2016 and are projected to be $120,000 in 2017. Net income was $5,000 in 2016 and is projected to be $6,000 in 2017. Equity was $45,000 at year-end 2015 and $50,000 at year-end 2016. Assuming that this company never issued new equity, never repurchased equity, and never changes its dividend payout ratio, what would be projected for equity at year-end 2017
Answer:
just add it all up then there u go
Jeremy purchases a share in a company. What rights does he possess after the purchase?
Jeremy is a (bond issuer, shareholder, or security?) of the company. Therefore, he gets the right to be a partial (employee, owner or supplier?). This means when board members declare dividends, he is entitled to (income, promotion or pay hike?). He has the right to (store, supply or sell?) these shares whenever he wants. He can also look into the company's annual reports and sue for discrepancies.
Answer:
Shareholder, owner, income, sell
Explanation:
I got this question right on plato :)
Jeremy purchases a share in a company. He possess after the purchase so he has the right to (store, supply or sell?) these shares whenever he wants. The correct option is (D).
What do you mean by the share?Shares are fractional ownership interests in a corporation. For some businesses, shares are a type of financial instrument that allows for the equitable distribution of any declared residual profits in the form of dividends.
A stock with no dividend payments does not distribute its income to its shareholders.
Anyone who holds at least one share of a company's stock or unit in a mutual fund is referred to as a shareholder. The firm is primarily owned by its shareholders, who also have specific rights and obligations.
Therefore, Jeremy purchases a share in a company. He possess after the purchase so he has the right to (store, supply or sell?) these shares whenever he wants.
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Project1 costs, Year 1 through Year 4: $100,000; $100,000;$100,000;$100,000 Project1 revenue, Year 1 through Year 4: $0; $5,000;$50,000;$110,000 Calculate ROI for Project1, using a 7 percent discount rate. Discount factor, Year 1 through Year 4: 0.93; 0.87; 0.82; 0.76 Fill in the following blanks - just type the numbers without labels, dollar signs, commas, etc.
Answer and Explanation:
Without discounting :
Return on investment(ROI) for year 1 = -$100000
Return on investment(ROI) for year 2 = -$95000
Return on investment(ROI) for year 3 =-$50000
Return on investment(ROI) for year 4 =$10000
With discounting(PV/(1+r)^n):
Return on investment for year 1 = 0.93×-$100000= -$93000
Return on investment for year 2= 0.87×-$95000= -$82650
Return on investment for year 3 = 0.82×-$50000=-$41000
Return on investment for year 4=
0.76×$10000= $7600
Sandhill uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $386000 ($590000), purchases during the current year at cost (retail) were $1975000 ($3220000), freight-in on these purchases totaled $125000, sales during the current year totaled $2920000, and net markups (markdowns) were $68000 ($104000). What is the ending inventory value at cost
Answer:
$567,056
Explanation:
Cost :
Merchanidize available for sale
= Beginning inventory + Purchases + Freight in
= $386,000 + $1,975,000 + $125,000
= $2,486,000
Retails:
Merchandize available for sale:
= Beginning inventory + Purchases + Markups
= $590,000 + $3,220,000 + $68,000
= $3,878,000
Ending inventory at retail = Retail total -markdowns - Net sales
= $3,878,000 - $104,000 - $2,920,000
= $854,000
Cost to retail ratio = $2,486,000 ÷ ($2,920,000 + $854,000)
= $2,486,000 ÷ $3,744,000
= 66.40%
Ending inventory at retail = $854,000
And
Cost to retail ratio = 66.40%
Therefore,
Ending inventory at cost = $854,000 × 66.40% = $567,056
Last month, you lent a work colleague $5000 to cover some overdue bills. He agreed to pay you in 1 month with interest at 2% for the month, thus owing you $5100. Today, when the repayment is due, he asked you to extend the loan for another month and he would pay you the $5100 next month. In the meantime, you have had the offer to invest as much as you wish in an oil-well venture that is expected to pay 40% per year and a hot new IT stock that is estimated to return 39% the first year. If you let your colleague have another month, what is the opportunity cost of your decision
Answer:
The opportunity cost of lending the money to the friend is the largest expected return that could be earned with the money loaned to the friend. From the available opportunity, the investor could earn maximum of 40% by investing in oil well venture. Thus, the opportunity cost to the investor is 40%
The opportunity cost in dollar = Investment * Opportunity cost in %
= $5,000 * 40%
= $2,000
Thus, the opportunity cost in dollar is $2,000
Data pertaining to the postretirement health care benefit plan of Danielson Delivery Service include the following for the current calendar year: Service cost $ 150,000 APBO, January 1 $ 800,000 Plan assets (fair value), January 1 $ 80,000 Prior service cost (current year amortization, $2,000) $ 90,000 Retiree benefits paid (end of year) $ 90,000 Net gain (current year amortization, $1,000) $ 92,000 Contribution to health care fund (end of year) $ 85,000 Return on plan assets (actual and expected) 10 % Discount rate 8 % Required: 1. Determine Danielson's postretirement benefit expense for the current year.
Answer: $207,00
Explanation:
Postretirement benefit for the year is:
= Service cost + Interest cost + Amortization of prior service cost - Return on plant assets - Amortization of net gain
Interest cost = Discount rate * Actual Projected benefit obligation (APBO)
= 8% * 800,000
= $64,000
Return on plant assets = Return on plan assets (actual and expected)* Plan assets
= 10% * 80,000
= $8,000
Postretirement benefit = 150,000 + 64,000 + 2,000 - 8,000 - 1,000
= $207,000
On January 1, year 8, Derek Co.’s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected benefit obligation of $875,000. In addition: Actual and expected return on plan assets – 7% Interest cost – 9% Service costs - $24,000 Unamortized prior service cost - $120,000 Employer contributions to the plan - $45,000 Distributions to employees from the plan - $60,000 Unamortized prior service cost is being amortized over the expected remaining service lives of covered employees, which consists of a total of 9 employees: 2 employees are each expected to have 9 years remaining 3 employees are each expected to have 6 years remaining 4 employees are each expected to have 1 year remaining How much amortization of prior service cost will be included in Derek Co.’s pension expense for year 8?
Answer: $27,000
Explanation:
Amortization of prior cost = (No. of employees / Total number of years left) * Unamortized prior service cost
Total number of years left:
2 employees are each expected to have 9 years remaining = 2 * 9
= 18 years
3 employees are each expected to have 6 years remaining = 3 * 6
= 18 years
4 employees are each expected to have 1 year remaining = 4 * 1
= 4 years
Total number of years = 18 + 18 + 4
= 40 years
Amortization of prior cost = (9 / 40) * 120,000
= $27,000
Direct Materials Used in Production
Slapshot Company makes ice hockey sticks. On June 1, Slapshot had $48,000 of materials in inventory. During the month of June, the company purchased $132,000 of materials. On June 30, materials inventory equaled $45,000.
Required:
Calculate the direct materials used in production for the month of June.
Answer:
$135,000
Explanation:
The direct materials used in production for the month of June is computed as;
= Materials inventory at June 1 + Materials purchased during the month of June - Materials inventory at June 30
= $48,000 + $132,000 - $45,000
= $135,000
Therefore, the direct materials used in production for the month of June is $135,000
A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per unit. At current output level, the marginal product of labor is 40 truffles and the marginal product of capital is 60 truffles. To reduce the total cost of producing the current quantity of truffles, how should the firm change its spending on labor and capital
Answer: See explanation
Explanation:
With the information given in the question, the firm should change its spending on labor and capital by increasing its labor and at thesame time, also reducing capital.
This is because since the marginal product of labor is 40 truffles and the price of labor is $10 per unit, it means that 4 truffles/dollar is being spent on labor, while for capital, 3 truffles/dollar is being spent.
The following are independent situations.
a. A new company is formed and shareholders invest $12,000 cash.
b. A company purchases for $18,000 cash a new truck that has a list price of $21,000.
c. A company pays stockholders a $10,000 cash dividend.
d. A company purchases a piece of land for $50,000 cash. An appraiser suggests that the value of this land is $55,000.
e. A company declares dividends of $1,100 to the shareholders but does not pay them yet; the company will pay these dividends in 60 days.
f. A company has to pay monthly wages of $5,600 to its employees; the company will pay them in two weeks.
Required:
1. Indicate the appropriate account titles, if any, affected in each of the preceding events. Consider what is received and what is given.
2 At what amount would you record the truck in (b)? The land in (h)? What measurement principle are you applying?
3. For (c), what accounting concept did you apply? For (J), what accounting concept did you apply?
Answer:
1. Indication of the appropriate account titles:
a. Cash ($12,000) is received, Common Stock ($12,000) is given.
b. Truck ($18,000) is received, Cash )$18,000) is given.
c. Dividend ($10,000) is incurred, Cash ($10,000) is given.
d. Land ($50,000) is received, Cash ($50,000) is given.
e. Dividend ($1,100) is incurred, Dividend Payable ($1,100) will be given.
f. Wages ($5,600) are incurred, Wages Payable ($5,600) will be given.
2. Truck will be record at $18,000.
b. Land in d will be recorded at $50,000.
The measurement principle being applied is the cost basis.
3. The accrual concept is applied for 'c.'
The accrual concept is applied for 'f' also.
Explanation:
Purchased assets are recognized at cost. This is the amount paid for the acquisition of the asset. The value of the asset may vary after the initial recognition. This is when the fair value of the asset is considered. The purpose is to recognize assets at the values they be sold or bought in the market.
In July 2012, a small chocolate factory receives a large order for chocolate bars to be delivered in November. The spot price for Cocoa is $2,400 per metric ton. It will need 10 metric tons of Cocoa in September to fill this order. Because of limited storage capacity and volatility in the world cocoa prices, the company decides the best strategy is to buy 10 call options for $53 each with strike price of $2,400 (equal to the current price) with a maturity date of September 2012. When the options expire in September, how much will the company pay (including the cost of the options) for cocoa if the spot price in September proves to be $2,600
Answer:
$24,530, $23,530
Explanation:
Incomplete word "and if the spot price in September proves to be $2,300."
Note that Call options will be exercised only if the price on expiry is greater than strike price
Strike price = $2400
Premium paid = $53 for each contract, so the total premium paid = $530 for 10 contracts
CASE 1
Price = $2600
As price on expiry=2600 > Strike price=2400
Call option will be exercised.
Company will pay = $2400 * 10+530 = $24,530
CASE 2
Price = $2300
As price on expiry=2300 < Strike price=2400
Call option will not be exercised and will purchase from open market
Company will pay = $2300 * 10+530 = $23,530
Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,030 units that were 75% completed. 10,000 units were started into the process during January. On January 31, the inventory consisted of 400 units that were 40% completed. What would be the equivalent units for conversion cost using the weighted average method
Answer:
Equivalent units for conversion cost is 10,790 units
Explanation:
Completed and Transferred (1,030 + 10,000 - 400) x 100 % = 10,630
Ending Work In Process 400 x 40% = 160
Total equivalent units for conversion cost = 10,790
Use the following Year 3 data: Other Selling and Administrative Expenses $ 1,052,000 Other Expenses 249,300 Sales Revenue 4,887,000 Advertising and Promotion Expenses 553,350 Salaries and Wages Expense 2,527,800 Income Tax Expense 167,350 Interest Expense 114,750 Required: Prepare the annual income statement for Kvass, Inc.
Answer:
$222,450
Explanation:
Computation of annual income statement for Kvass Inc. is shown below
Sales revenue
$4,887,000
Less:
Selling and admn expenses
($1,052,000)
Other expenses
($249,300)
Advertising and promotion expenses
($553,350)
Salaries and wages expenses
($2,527,800)
Income tax expenses
($167,350)
Interest expense
($114,750)
Net income
$222,450
Lois tells Stew he can buy her pool house for $100,000. Stew is so excited to own a home of his own that he leaves a $10,000 check in her mailbox as a starting payment on the pool house. Then, he begins remodeling the pool house, spending $3,000 in repairs and improvements. Lois decides she made a big mistake and attempts to cancel this agreement. The most likely outcome will be:
Answer:
The most likely outcome would be that Lois will still have to sell Stew the house
Explanation:
The most likely outcome would be that Lois will still have to sell Stew the house. This is mainly because Lois accepted Stew's offer of $100,000 and Stew already fulfilled part of the agreement. By simply paying the $10,000 that he left Stew he has already fulfilled part of his side of the agreement which solidifies the agreement and makes it legally binding. Therefore, he would most likely win a court case if Lois decides to back out of the agreement.
You are contemplating between four possible interest rate structures. The rates are as follows: annual effective rate of 12% annual nominal rate of 12% compounded monthly annual nominal rate of 8% compounded quarterly annual nominal rate of 10% compounded semiannually You wish to deposit $1,000 into a fund for 2 years. Calculate the difference between the largest and smallest possible accumulated values of your deposit at the end of 2 years.
Answer:
The difference between the largest and smallest possible accumulated values of the deposit at the end of 2 years is $98
Explanation:
Annual effective rate of 12%
FV = PV * (1+i)^n
FV = $1,000 * (1+0.12)^2
FV = $1,000 * 1.2544
FV = $1,254.
Annual nominal rate of 12% compounded monthly
FV = PV * (1+i)^nm
FV = $1,000 * (1+0.01)2^12
FV = $1,000 * (1+0.01)^24
FV = $1,000 * 1.2697
FV = $1,270
Annual nominal rate of 8% compounded quarterly
FV = PV * (1+i)^nm
FV = $1,000 * (1+0.02)2*4
FV = $1,000 * (1+0.02)^8
FV = $1,000 * 1.171659
FV = $1,172
Annual nominal rate of 10% compounded semiannually
FV = PV * (1+i)^n
FV = $1,000 * (1+0.05)^2*2
FV = $1,000 * (1+0.05)^4
FV = $1,000 * 1.215506
FV = $1,216
So, the difference between the largest and smallest possible accumulated values is $98 ($1,270 - $1,172)
In the fall of 2014, China and the United States agreed to expand the Information Technology Agreement to drop tariffs on a number of technology products. This is an example of_________ reducing protectionist measures.
Answer:
Free trade policy.
Explanation:
Trade can be defined as a process which typically involves the buying and selling of goods and services between a producer and the customers (consumers) at a specific period of time.
In the fall of 2014, China and the United States agreed to expand the Information Technology Agreement to drop tariffs on a number of technology products. Therefore, this is an example of free trade policy reducing protectionist measures.
Free trade policy includes the adoption and implementation of tariffs and quotas between countries.
Trade policies tariffs and quotas will most likely benefit domestic producers of the protected good and harm domestic consumers of the protected good as they're made to pay for the consumption of imported products. Hence, under free trade there are more societal benefits due to the specialization of domestic goods.
Tariffs can reduce both the volume of exports and imports in a country.
In order to generate revenues, domestic government make use of tariffs while quotas do not generate any revenue for them.
Identify the accoun title.
1. A new company is formed and shareholders invest $12,000 cash.
2. A company purchases for $18,000 cash a new truck that has a list price of $21,000.
3. A company pays stockholders a $10,000 cash dividend.
4. A company purchases a piece of land for $50,000 cash. An appraiser suggests that the value of this land is $55,000.
5. A company declares dividends of $1,100 to the shareholders but does not pay them yet; the company will pay these dividends in 60 days.
6. A company has to pay monthly wages of $5,600 to its employees; the company will pay them in two weeks.
Answer:
1. On formation of new Company and receipt of cash of $ 12,000 from shareholders
Cash Dr $ 12,000
To Share capital Cr $ 12,000
2. On purchase of truck for $ 18,000
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
(Though list price of truck is $ 21,000, but in accounts only the purchase price will be recorded as its cost borne by the company.)
3. On payment of dividend in cash
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. On purchase of land
Land A/c Dr $ 50,000
To cash Cr $ 50,000
( On purchase of land on payment of $ 50,000).
There is another method of accounting of land value based on valuation by appraiser. If Company wants to record based on valuation by Appraiser, the accounting will be recorded as under:
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
On payment of dividend after 60 days
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. After each month wages will be due to its workers, then accounting entry will be recorded as under
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
After two weeks, on payment of wages, the accounting entry will be recorded as under
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
Explanation:
1. The shareholder that will be invested with the help of the cash:
Cash Dr $ 12,000
To Share capital Cr $ 12,000
What is an account title?The specific name given to an item inside of an accounting system is known as the account title.
2. The company purchased a truck this was with the help of the cash
Truck A/c Dr $ 18,000
To Cash Cr $ 18,000
3. Cash payment was made for the stockholders
Dividend A/c Dr $ 10,000
To Cash Cr $ 10,000
4. The company was to make sure that there will be cash and profit for both
Land A/c Dr $ 55,000
To Cash Cr $ 50,000
To gain on purchase of land Cr $ 5,000
5 On declaration of dividend
Dividend A/c Dr $ 1,100
To Dividend Payable A/c Cr $ 1,100
Next entry will be
Dividend payable A/c Dr $ 1,100
To Cash Cr $ 1,100
6. monthly wages of $5,600
Wages A/c Dr $ 5,600
To Wages payable A/c Cr $ 5,600
Next entry will be:
Wages payable A/c Dr $ 5,600
To cash Cr $ 5,600
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On September 1, Capitol Maintenance Company contracted to provide monthly maintenance services for the next seven months at a rate of $2,300 per month. The client paid Capitol $16,100 on September 1. The maintenance services began on that date. Assuming Capitol records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on December 31
Answer:
Debit Unearned Revenue, Credit Service Revenue for $9,200
Explanation:
Date Account Titles Debit Credit
Sept 1 Cash $16,100
Unearned service revenue $16,100
Dec 31 Unearned service revenue $9,200
Service Revenue $9,200
($2300 * 4 months)
The name for a variety of methods used to examine how an amount will change if factors involved in predicting that amount change is: Cost analysis. Cost-volume-profit analysis. Sensitivity analysis. Contribution margin analysis. Factor analysis.
Answer:
Sensitivity analysis.
Explanation:
Sensitivity analysis studies how an economic variable would change due to changes in one of the input variables.
Due to the fact that the future is uncertain, it would be wise to accommodate a varying range of scenarios to be able to be well prepared for the future.
Sensitivity analysis involves changing one input at a time to determine how they would affect results.
For example, in determining NPV, there can be different ranges of discount rate
f
For each of the following activities, indicate which of the objectives of managerial accounting activity is involved. In some cases, several objectives may be involved.
a. Providing information for decision making and planning.
b. Assisting managers in directing and controlling operational activities.
c. Motivating managers and other employees toward the organization's goals.
d. Measuring the performance of activities, subunits, managers, and other employees within the organization.
e. Assessing the organization's competitive position, and working with other managers to ensure the organization's long-run competitiveness in its industry
Answer:
1)C.motivating managers and other employees toward the organization's goals.
2)B.assisting managers in controlling operations
3)A.providing information for decision making and planning.
4)A.providing information for decision making and planning
-B.assisting managers in directing and controlling operational activities
D.measuring the performance of activities, subunits, managers and other employees within the organization
5)A.providing information for decision making and planning
6) ✓Measuring the performance of activities, subunits, managers, and other employees within the organization
✓Providing information for decision making and planning
7)E.Assessing the organization's competitive position and working with other managers to ensure the organization's long-run competitiveness in its industry.
Explanation:
THIS IS THE COMPLETE PART OF THE QUESTION BELOW;
1. Developing a bonus reward system for the managers of the various offices of the AAA (American Automobile Association) Travel Agency.
a.Providing information for decision making and planning.unchecked
b.Assisting managers in directing and controlling operational activities.unchecked
c.Motivating managers and other employees toward the organization’s goals.checked
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unchecked
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.
2. Comparing the actual and planned cost of a consulting engagement completed by an engineering firm such as Allied Engineering.
a.Providing information for decision making and planning.unchecked
b.Assisting managers in directing and controlling operational activities.checked
c.Motivating managers and other employees toward the organization’s goals.unchecked
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unchecked
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.unchecked
3. Determining the cost of manufacturing a tennis racket at Wilson Sporting Goods.
a.Providing information for decision making and planning.unanswered
b.Assisting managers in directing and controlling operational activities.unanswered
c.Motivating managers and other employees toward the organization’s goals.unanswered
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unanswered
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.unanswered
4. Measuring the cost of the inventory of digital cameras on hand in a Best Buy store.
a.Providing information for decision making and planning.unanswered
b.Assisting managers in directing and controlling operational activities.unanswered
c.Motivating managers and other employees toward the organization’s goals.unanswered
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unanswered
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.
5. Estimating the annual operating cost of a newly proposed Wells Fargo branch bank.
a.Providing information for decision making and planning.unanswered
b.Assisting managers in directing and controlling operational activities.unanswered
c.Motivating managers and other employees toward the organization’s goals.unanswered
d.Measuring the performance of activities, subunits, managers, and other employees within the organization.unanswered
e.Assessing the organization’s competitive position, and working with other managers to ensure the organization’s long-run competitiveness in its industry.unanswered
6. Measuring the following costs incurred during one month in a Hyatt Regency hotel:
7. Comparing a Sheraton Hotel’s room rate structure, occupancy rate, and restaurant patronage with industry averages.
EXPLANATION:
Managerial accounting can be regarded as the practice involving identification, measurement, analysing as well as communication of financial information across to managers so that goals of the organization can be achieved. Main objective of managerial accounting is the maximization of profit as well minimization of losses. It involves coming up with data so that
inconsistencies in finances can be predicted and this will help manager to make some decisions
Take a moment to practice identifying a single, researchable question for the following issues:
a. A company ships its widgets to a customer on December 31 but has not yet collected payment from the customer. The customer has promised to pay within 30 days but has never purchased good with this company before. Researchable question?
b. A customer is suing the local grocery store for a slip-and-fall incident. The grocery store believes the lawsuit will likely be considered frivolous and rejected by the court. The grocery store must decide whether to record or disclose this matter. Researchable question?
Answer:
Identifying a single, researchable question for the stated issues:
a. How probable will it be that this customer pays within 30 days?
b. How probable is it for a liability to arise from this lawsuit?
Explanation:
A good research question should be specifically focused on a single issue or some closely related ideas. This will ensure the generation of a good thesis statement. A research question that is too general or is not focused on one topic makes it difficult to carry out the research. The only solution will be to narrow down the topic to a single researchable issue. A good research question provides a clear direction. It should provide the basis for meaningful understanding of an issue through investigation.
A Saudi Arabian government-run hospital hired American Scott Nelson to be an engineer. The parties signed the employment agreement in the United States. On the job, Nelson reported that the hospital had significant safety defects. For this, he was arrested, jailed, and tortured for 39 days. Upon his release to the United States, Nelson sued the Saudi government for personal injury. Can Nelson sue Saudi Arabia
Answer:
No, Nelson cannot sue. The US Supreme Court ruled that regardless of the monstrous activities carried out by the Saudi government and the fact that they tend to solve commercial disputes by putting people in jail and torturing them, the events happened in Saudi Arabia. And they were not related to the contract signed by Nelson, the police and the hospital are considered sperate entities by the US laws.
The court recognized that Saudi behavior was really bad, but they had jurisdiction over it. This is a strictly police matter. Saudi Arabia and most Arab states are known for these type of activities, but people continue to go to work there because they offer high salaries. They forget that a golden cage is still a prison.
At the end of January, the first month of the business year, the usual adjusting entry transferring rent earned from the unearned rent account to a revenue account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for January and (b) the balance sheet as of January 31. Also indicate whether the items in error will be overstated or understated.
Answer and Explanation:
a. In the case of the income statement
Revenues would be understated as the revenue is not credited
Expenses would remain unchanged
Net income would be understated due to the revenues
b. In the case of the balance sheet
Asset would remain unchanged
Liabilities would be overstated as the rent would not be transferred
Owner equity would be understated as there is a lower net income that low the retained earnings so automatically the owner equity would be understated
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.
Required:
For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object
Cost Cost Object Direct cost/indirect Cost
Ex. Catered food served to patients A particular patient
The wages of pediatric nurses The pediatric department
Prescription drugs A particular patient
Heating the hospital The pediatric department
The salary of the head of pediatrics The pediatric department
The salary of the head of pediatrics A particular pediatric patient
Hospital chaplain's salary A particular patient
Lab tests by outside contractor A particular patient
Lab tests by outside contractor A particular department
Answer:
Cost and Cost object / Explanation
a. The wages of pediatric nurses/The pediatric department
The wages of pediatric nurses are the costs and the pediatric department is the cost object and are directly related to each other. Wages is an element of direct cost. The wages of pediatric nurses relating to the pediatric department are Direct costs.
b. Prescription drugs / A particular patient
The prescription drugs are the costs and a particular patient is the cost object. The prescription drugs are direct costs as such costs are directly attributable to the treatment of a particular patient. This cost is incurred in direct proportion to the requirement of the pediatric patient.
c. Heating the hospital / The pediatric department
The cost of heating the hospital is an indirect cost as it is not directly required for the treatment of the pediatric patient. The cost of heating the hospital is to be incurred irrespective of the number of patients. It is a fixed cost and is not related to the level of activity.
d. The salary of the head of pediatrics / The pediatric department
The expenses of pediatric department are dependent upon the number of pediatric patients as it is the principal source of revenue for the department. The salary of the head of pediatrics relating to the pediatric patient is directly related to the number of pediatric patients. Thus, it is a direct cost.
e. The salary of the head of pediatrics / A particular pediatric patient
The treatment of the particular patient involves certain fixed or variable costs. The salary of the head of pediatrics is not directly relevant for the treatment of the particular patient. Thus, it is an indirect cost.
f. Hospital chaplain's salary / A particular patient
Hospital chaplain’s salary relating to a particular patient is not directly related to the patient. It is an indirect cost as it is a period cost or fixed cost. It has to be incurred irrespective of the number of patients.
g. Lab tests by outside contractor / A particular patient
Lab test is for the treatment of a particular patient due to which it is considered as a direct cost for the hospital. Lab tests by outside contractor relating to a particular patient is a direct cost as the nature of the expense is variable.
h. Lab tests by outside contractor / A particular department
This cost is a direct cost as it relates to a particular department and not the entire hospital. Lab tests by outside contractor relating to a particular department is a direct cost as the nature of the expense is variable.
The sole proprietor of Sam's Swings is interested in gaining a better understanding of his current customers in terms of certain demographic and lifestyle characteristics so he may better serve their needs. For this purpose, he should most appropriately conduct ________ research.
Answer:
Descriptive.
Explanation:
This is explained to be be a form of study that shows to be done in a descriptive manner where it talks about the data analysis, design and form at which the given topic is been solved at the said moment. This is why in the above case, the demographic and lifestyle properties are been ascertained for better conclusions that can drive to the given description. When this is gotten, it will be clearly seen to get a resonable amount ofescription which he require.