Answers
Answer:
D
Explanation:
D is the answer sjkrkdrir
Related Questions
why is it difficult to visualize a business entity without external users?
Answers
Answer:
Since businesses require an exchange of goods and services, external users must be involved.
Explanation:
A business is an entity set up for the sole purpose of producing goods and services that will be sold to interested buyers for a profit. The producers within an organization cannot consume all that they have produced by themselves. They need others- external users to purchase that which they have made.
In return, they make some profit through the exchange. So, because a business entity does work that requires exchange, there must be external users.
External users must be involved since businesses demand the trade of goods and services. Business decisions are largely influenced by external users.
Who are external users?External users of business transactions are those entities interested in a company's financial results, it includes creditors, suppliers, investors, banks, financial institutions, government along with others.
A business is an entity formed solely for the aim of generating goods and services that will be sold for a profit to interested buyers.
An organization's producers can't consume what they've created on their own. They require external users to purchase what they have created in exchange for profit from the transaction.
Hence, a business entity cannot visualize itself without external users. because a business entity performs work that necessitates interchange, for which external users are required.
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Analyze Johnson Stores’ staffing budget for holidaysJohnson Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $12,000 in daily sales. The average daily sales is anticipated to increase by $96,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work an eight-hour shift and will be paid $14 per hour.a. Determine the amount to budget for additional sales clerks for the holiday season.Holiday staff budget for additional clerks $b. If Johnson Stores has an average 40% gross profit on sales. What is the additional profit generated if a staff is added for the increased sale?Additional profit $
Answers
Answer:
Johnson Stores
Staffing Budget for Holidays:
a. The amount to budget for additional sales clerks for the holiday season is:
= $24,192.
b. The additional profit generated if a staff is added for the increased sale is:
= $1,209.60.
Explanation:
a) Data and Analysis:
Number of sales clerk required for each $12,000 in daily sales = 1
Average sales increase = $96,000
Number of sales clerk required for the $96,000 sales increase = 8 ($96,000/$12,000)
Number of shopping days from Black Friday to Christmas Eve = 27
Sales clerk works a shift per day = 8 hours
Wages per hour = $14
Total hours to be worked by the additional sales clerk = 8 * 27 * 8 = 1,728
Total wages = 1,728 * $14 = $24,192
Average gross profit on sales = 40%
Total gross profit on sales = $24,192 * 40% = $9,676.80
Additional gross profit generated by adding a staff = $1,209.60 ($9,676.80/8)
Cemptex Corporation prepares its statement of cash flows using the indirect method to report operating activities. Net income for the 2021 fiscal year was $634,000. Depreciation and amortization expense of $89,000 was included with operating expenses in the income statement. The following information describes the changes in current assets and liabilities other than cash: Decrease in accounts receivable $24,000 Increase in inventory 9,400 Increase in prepaid expenses 8,700 Increase in salaries payable 10,200 Decrease in income taxes payable 13,000Required: Prepare the operating activities section of the 2021 statement of cash flows.
Answers
Answer:
$726,100
Explanation:
Preparation of the operating activities section of the 2021 statement of cash flows.
Cash Flow from Operating Activities
Net Income $634,000
Adjustments:
Depreciation and amortization $89,000
Changes in operating asset and liabilities
Decrease in Account receivable $24,000
Increase in Inventory $ (9,400)
Increase in Prepaid expenses $ (8,700)
Increase in Salaries payable $10,200
Decrease in Income tax payable $ (13,000)
Operating activities $726,100
Therefore the operating activities section of the 2021 statement of cash flows will be $726,100
In an ethical dilemma such as the one presented above
Multiple Choice
there are two choices, neither of which resolves the situation in an ethically acceptable manner
there are two choices, either of which resolves the situation in an ethically acceptable manner
there are two choices, one of which resolves the situation in an ethically acceptable manner
there is only one choice
there are no choices
Answers
Answer:
there are two choices, neither of which resolves the situation in an ethically acceptable manner
Explanation:
Given that Ethical dilemma is a philosophical term that describes circumstances whereby an individual is having two available decisions for him to pick one. However, none of them supersede the other in terms of ethical requirements.
Therefore, in this case, the correct answer is "there are two choices, neither of which resolves the situation in an ethically acceptable manner."
You want to create incentives for your management team to improve safety. Group of answer choices You should avoid bonuses that are tied to overall measures of safety. You should give bonuses if errors reported in individual units go down. You should tie bonuses to aspects of safety that you can easily measure. None of the above
Answers
Answer:
To improve safety:
You should tie bonuses to aspects of safety that you can easily measure.
Explanation:
Bonuses improve safety performance. Are all aspects of safety performance measurable? Yes. It has been established that safety performance can be measured in two main ways by measuring the lag (output or outcome) and lead (input or before-incident) indicators. The Occupational Safety and Health Administration (OSHA) allows employers to institute rate-based programs to reward employees with bonuses. These programs should not be an attempt to discourage the employees from reporting safety issues.
a. Which of the following items might you include in the basket of goods and services for the average student? The basket should include:______
a. cafeteria meals.
b. washing machines.
c. textbooks.
d. pens.
b. One of the primary expenses in a student’s basket is tuition, which is also included in the BLS calculation of the CPI. Consider the portion of total expenditure tuition accounts for in a student's budget versus a typical household's budget. Given that difference, the value of the student's basket over time has likely changed ________than the CPI.
Answers
Answer:
A. a. cafeteria meals.
c. textbooks.
d. pens.
B. More
Explanation:
Students use textbooks and pens at school to study and take down notes. They also go to the cafeteria at meal times to eat. A student does not directly need a washing machine to be a student so the options are cafeteria meals, textbooks and pens.
Overtime, tuition fees have ballooned and are now much higher than they used to be. Students therefore spend a significant amount of their budget on tuition as opposed to Households. It can therefore be said that student's basket overtime has likely changes more than the CPI.
Which of the following is the type of notice provided by recording?
Select one:
a reasonable
b. constructive
c. protective d. actual
Answers
Answer:
b
Explanation:
You have been hired to design the controller of a shampoo manufacturing facility plant vessel. After speaking with the electrical engineers working in that company you have been told that there is a lot of noise in the system, and that errors tend to both repeat in magnitude, vary in size, happen suddenly, and persist over time. What type of controller would be the most efficient
Answers
Answer:
PID Controller
Explanation:
Known for its stability and efficiency, the PID (proportional integral derivative) controller would be the best type of controller used in this case.
Remember, a controller basically is a name attributed to the device architecture that allows the controlling of temperature, pressure, and flow processes.
Hence, since there is a lot of noise in the shampoo manufacturing system, having persistent errors which happen suddenly, the use of a PID Controller should able to detect and resolve the issue.
Which of the following is the basic accounting equation?
A. Stockholders' or Owner's Equity = Liabilities + Assets
B. Assets = Liabilities + Income
C. Liabilities = Assets + Stockholders' or Owner's Equity
D. Assets = Liabilities + Stockholders' or Owner's Equity
Answers
Answer:
owner's equity=liabilities+assets(A)
Answer:
Assets=Liabilities+Stockholders' or Owner's equity
Explanation:
Just took the test
why is marketing research important to a business enterprise { essay }
Answers
Answer:
Market research can identify how customers and potential customers might view your business and identify gaps in customer expectations. This is powerful information to have when completing your marketing strategy. Having good market intelligence helps to minimise risks when making key business decisions.
Explanation:
hope it helps and can I have brainless.
Escareno Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (8,400 units)$ 764,400 Variable expenses445,200 Contribution margin319,200 Fixed expenses250,900 Net operating income$ 68,300 If the company sells 8,200 units, its total contribution margin should be closest to:
Answers
Answer:
$319,200
Explanation:
Total Contribution Margin = Total Sales - Total Variable Costs
therefore,
Total Contribution Margin = $ 764,400 - $445,200
= $319,200
Conclusion
Escareno Corporation total contribution margin should be closest to $319,200.
Rise N' Shine Coffee Company produces Columbian coffee in batches of 6,000 pounds. The standard quantity of materials required in the process is 6,000 pounds, which cost $5.50 per pound. Columbian coffee can be sold without further processing for $9.22 per pound. Columbian coffee can also be processed further to yield Decaf Columbian, which can be sold for $11.88 per pound. The processing into Decaf Columbian requires additional processing costs of $10,230 per batch. The additional processing also causes a 5% loss of product due to evaporation.
Required:
a. Prepare a differential analysis dated October 6 on whether to sell regular Columbian (Alternative 1) or process further into Decaf Columbian (Alternative 2).
b. Should Rise N' Shine sell Columbian coffee or process further and sell Decaf Columbian?
c. Determine the price of Decaf Columbian that would cause neither an advantage nor a disadvantage for processing further and selling Decaf Columbian.
Answers
Answer:
Rise N' Shine Coffee Company
a. Differential Analysis dated October 6:
Alternative 1 Alternative 2
Sales revenue $55,320 (6,000 * $9.22) $67,716 (5,700 * $11.88
Costs:
Cost of product 33,000 (6,000 * $5.50) 33,000 (6,000 * $5.50)
Batch cost 10,230
Evaporation loss 1,650
Total costs $33,000 $44,880
Profit $22,320 $22,836
b. Rise N' Shine should process further before selling Decaf Columbian.
c. If the price of Decaf Columbian coffee were $11.79 ($11.88 - $516/5,700), it will cause neither an advantage nor a disadvantage for processing the Columbian coffee further.
Explanation:
a) Data and Calculations:
Total quantity of materials required = 6,000 pounds
Cost price of each pound = $5.50
Selling price of Columbian coffee without further processing = $9.22
Selling price of Decaf Columbian coffee with further processing = $11.88
Costs of additional processing:
Batch cost = $10,230
Evaporation loss = 5% of 6,000 (300) = $1,650
Differential Analysis dated October 6:
Alternative 1 Alternative 2
Sales revenue $55,320 (6,000 * $9.22) $67,716 (5,700 * $11.88
Costs:
Cost of product 33,000 (6,000 * $5.50) 33,000 (6,000 * $5.50)
Batch cost 10,230
Evaporation loss 1,650
Total costs $33,000 $44,880
Profit $22,320 $22,836
Difference = $516 ($22,836 - $22,320)
gPlease record the following items in journal entry format. Clearly indicate the (a) account name (b) whether it is a (debit) or (credit) and (c) the amount. See my example below: The firm bought supplies for $6,400 on account. The firm purchased land for $450,000, $160,000 of which was paid in cash and a note payable signed for the balance. The firm paid for the supplies ($6,400) purchased on account above. The firm paid $1,000 for salaries for the month. The firm accepted cash for repair services made in the amount of $5,000 and billed additional customers for repair services of the amount of $2,500 The firm received cash from customers on account in the amount of $2,000 . The firm repaid $16,000 of its loan. The firm paid the rent and utility bill for the month for $2,000 The firm paid a cash dividend of $1,000. Example: The firm purchased Equipment for $1,000. Clearly indicate the (a) account name (b) whether it is a (debit) or (credit) and (c) the amount Correct way to answer: Equipment (debit) $1,000 Cash (credit) $1,000
Answers
Answer:
Journal Entry Format:
1. Supplies (debit) $6,400 Accounts payable (credit) $6,400
2. Land (debit) $450,000 Cash (credit) $160,000 Notes Payable (credit) $290,000
3. Accounts payable (debit) $6,400 Cash (credit) $6,400
4. Salaries Expense (debit) $1,000 Cash (credit) $1,000
5. Cash (debit) $5,000 Service Revenue (credit) $1,000
6. Accounts receivable $2,500 Service Revenue (credit) $2,500
7. Cash (debit) $2,000 Accounts receivable (credit) $2,000
8. Dividends (debit) $1,000 Cash (credit $1,000
Explanation:
With the above journal format, the account that receives value is debited while the account that gives value is credited. This follows the accounting principle of debiting the receiver and crediting the giver. It shows that assets, expenses, and losses have debit balances while liabilities, equity, gains, and revenues have credit balances.
You have purchased a put option on Pfizer common stock. The option has an exercise price of $53 and Pfizer’s stock currently trades at $55. The option premium is $0.80 per contract. a. What is your net profit on the option if Pfizer’s stock price does not change over the life of the option? b. What is your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option?
Answers
Answer:
A. -0.80
B. 2.20
Explanation:
A. Calculation for your net profit on the option if Pfizer’s stock price does not change over the life of the option
Net profit per share=max(53-55,0)-0.80
Net profit per share=0-0.80
Net profit per share=-0.80
Therefore your net profit on the option if Pfizer’s stock price does not change over the life of the option is -0.80
b. Calculation for your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option
Net profit per share
=max(53-50,0)-0.80
Net profit per share=3-0.80
Net profit per share=2.20
Therefore your net profit on the option if Pfizer’s stock price falls to $50 and you exercise the option is 2.20
Kingston Company, which needs 10,000 units of a certain part to be used in its production cycle, can make or buy the part. If Kingston buys the part from Utica Company, Kingston could not use the released facilities in another manufacturing activity within the coming year. 60% of the fixed overhead applied will continue regardless of which decision option is chosen. The following per-unit cost information to make the part by Kingston is available: Direct materials $ 37 Direct labor 148 Variable overhead 74 Fixed overhead applied 93 $ 352 Cost to buy the part from Utica Company $ 85 In deciding whether to make or buy the part, Kingston's total relevant cost to make the part would be:
Answers
Answer: $2,962,000
Explanation:
60% of the fixed overhead cannot be avoided which means that only 40% can be avoided. This is the amount to include in the analysis.
To make 10,000 units, the cost would be:
= Direct materials + Direct labor + Variable Overhead + Fixed overhead applied
= (10,000 * 37) + ( 10,000 * 148) + (10,000 * 74) + (10,000 * 93 * 40%)
= 370,000 + 1,480,000 + 740,000 + 372,000
= $2,962,000
Sweet Company is presently testing a number of new agricultural seed planters that it has recently developed. To stimulate interest, it has decided to grant to five of its largest customers the unconditional right of return to these products if not fully satisfied. The right of return extends for 4 months. Sweet estimates returns of 15%. Sweet sells these planters on account for $1,630,000 (cost $733,500) on January 2, 2020. Customers are required to pay the full amount due by March 15, 2020.
Required:
Prepare the journal entry for Bridgeport at January 2, 2020.
Answers
Answer:
January 2, 2020
Dr Accounts Receivable $1,630,000
Cr Sales Revenue $1,630,000
Dr Cost of Goods Sold $733,500
Cr Inventory $733,500
Explanation:
Preparation of the journal entry for Bridgeport at January 2, 2020
January 2, 2020
Dr Accounts Receivable $1,630,000
Cr Sales Revenue $1,630,000
(To recognize revenue)
Dr Cost of Goods Sold $733,500
Cr Inventory $733,500
(To record cost of goods sold)
The appropriate section in the statement of cash flows for reporting the issuance of common stock for cash is: Multiple Choice Operating activities. Financing activities. Investing activities. Schedule of noncash investing or financing activity. This is not reported on the statement of cash flows.
Answers
Answer:
Financing activities.
Explanation:
In the financing activities of the cash flow statement the stockholder equity section should be considered i.e. if there is an issuance of the common stock or preferred stock or both so the same would be represented as cash inflow but if there is a dividend so it would be represent as a cash outflow
So as per the given situation it is a part of the financing activities
Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared. Taxable income 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $148,000 $227,000 $96,400 Installment gross profit collected 8,400 8,400 8,400 Expenditures for warranties (5,500 ) (5,500 ) (5,500 ) Taxable income $150,900 $229,900 $99,300 Pretax financial income 2019 2020 2021 Excess of revenues over expenses (excluding two temporary differences) $148,000 $227,000 $96,400 Installment gross profit recognized 25,200 -0- -0- Estimated cost of warranties (16,500 ) -0- -0- Income before taxes $156,700 $227,000 $96,400 The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019, 2020, and 2021.
Answers
Answer:
Explanation:
This question was computed in an Excel SOlver and the result are shown below:
Date Particulars Debit($) Credit($)
31-Dec-19 Income tax expense 62970
Deferred tax asset 4950
Income taxes payable 60360
Deferred tax liability 7560
(To record income tax expense
for the year)
31-Dec-20 Income tax expense 102150
Deferred tax asset 3780
Income taxes payable 103455
Deferred tax asset 2475
(To record income tax expense
for the year)
31-Dec-21 Income tax expense 43380
Deferred tax liability 3780
Income taxes payable 44685
Deferred tax Asset 2475
(TO record income tax expense
for the year)
Scenario: Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its ________.
Answers
Answer:
Economic motive.
Explanation:
An economic motive can be defined as the tendency of an investor or government to advocate and choose economic models, resources and factors of production that would positively and significantly impacts its economy.
In this scenario, Not-So-Free Freeland Freeland is a semi-closed economy whose government believes in protecting national identity and building a self-sustained economy. The government's priority is to protect local jobs and provide opportunities to Freeland's emerging industries to flourish without the threat of external competition. Freeland's efforts to provide opportunities to its emerging industries is an example of its economic motive because it would ensure that the jobs within the country is protected while creating opportunities for the company.
The term, obsolescence, as it relates to the useful life of an asset, refers to: Multiple Choice The halfway point of an asset’s useful life. A plant asset that is becoming outdated and no longer used. The inability of a company’s plant assets to function as designed. An asset's salvage value becoming less than its replacement cost. Intangible assets that have been fully amortized.
Answers
Answer:
A plant asset that is becoming outdated and no longer used.
Explanation:
Obsolescence can be regarded as situation whereby plant Asset is old and not been useful to produce goods/ services. It should be noted that obsolescence, as it relates to the useful life of an asset, refers to A plant asset that is becoming outdated and no longer used
Roberta is the supervisor of a fund-raising project. She notices that her team members are not able to meet the targets and they have deviated from the planned schedule. To understand the situation and the challenges that the team members are facing, Roberta wants to reach out to all the team members and establish an open communication culture. To convey her message clearly, the most appropriate way for Roberta would be to:
Answers
Answer: organize a face-to-face discussion with the team.
Explanation:
For Roberta to convey her message clearly, the most appropriate way will be for her to organize a face-to-face discussion with the team.
Since she wants to establish an open communication culture, having a face to face discussion is essential. In this case, the team shares their ideas and are more engaged. The team then understands what is required of them and works towards achieving company goals.
Acquisition Cost Desert State University installed a HD video board with an invoice price of $5,000,000 in its football stadium. Desert State paid an additional $100,000 of delivery and installation costs relating to this board. Because this is one of the largest boards in the world, Desert State also installed ten S-tonas conditioning units at a total cost of $120,000 to keep the board cool in the desert heat.
Required:
Determine the cost of the video board.
Answers
Answer: $5,220,000
Explanation:
The cost of the video board will be the total amount spent on the video board. This will be:
Invoice price = $5,000,000
Add: Delivery and Installation costs = $100,000
Add: Air conditioning units = $120,000
Cost of the video board = $5,220,000
Therefore, the cost of the video board is $5,220,000
Hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's: A. desire to increase prices throughout the economy. B. inability to conduct open-market operations. C. need to generate revenue to pay for spending. D. responsibility to increase nominal interest rates by increasing expected inflation.
Answers
Answer:
C. need to generate revenue to pay for spending.
Explanation:
Inflation can be defined as the persistent rise in the price of goods and services in an economy.
Generally, inflation usually causes the value of money to fall and as a result, it imposes more cost on an economy.
Furthermore, when this persistent rise in the price of goods and services in an economy becomes rapid, excessive, unbearable and out of control over a period of time, it is generally referred to as hyperinflation
Hence, hyperinflations ultimately are the result of excessive growth rates of the money supply; the underlying motive for the excessive money growth rates is frequently a government's need to generate (tax) revenue to pay for spending.
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
Which of these is referred to as the invisible network of interpersonal relationships that shape how people actually connect with one another to carry out their activities?
a.
Organizational development
b.
Organizational change
c.
Informal organization
d.
Organizational design
e.
Level of organization
Answers
Answer B but don’t take my word
The informal organization is sometimes referred to as the invisible network of interpersonal relationships that shape how people actually connect with one another to carry out their activities.
C. Informal organization
What is formal and informal organization?A formal organization is a group of people who have a formal relationship, set written policies and rules and a common goal. On the other hand, an informal organization is an organization that is formed when a group of people interact, develops connection and form an entity via mutual interactions.
What is divisional organization structure?Divisional organization structure in which various departments are created on the basis of products, territory or region, is called a divisional structure. Each unit has a divisional manager, who is responsible for performance and has authority over their division.
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he newspaper reported last week that Bennington Enterprises earned $34.03 million this year. The report also stated that the firm’s return on equity is 12 percent. The firm retains 80 percent of its earnings. What is the firm's earnings growth rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) What will next year's earnings be? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to the nearest whole number, e.g., 1,234,567.)
Answers
Answer:
(A) 9.6%
(B) 37,296,880
Explanation:
Current earnings for Bennington Enterprise is $34.03 million
The ROE is 12 percent
= 12/100
= 0.12
Retention ratio is 80 percent
= 80/100
= 0.8
(A) The firms earning growth rate can be calculated as follows
= 0.8× 0.12
= 0.096×100
= 9.6%
(B) Next year earnings can be calculated as follows
= 34,030,000 × (1+0.096)
= 34,030,000× 1.096
= 37,296,880
The Bottling Department of Mountain Springs Water Company had 5,000 liters in beginning work in process inventory (20% complete). During the period, 58,000 liters were completed. The ending work in process inventory was 3,000 liters (90% complete). All inventories are costed by the first-in, first-out method. What are the equivalent units for conversion costs under the FIFO method
Answers
Answer:
59,700 units
Explanation:
Equivalent units
Only focus on the work done during the production period when using FIFO.
Conversion costs = 5,000 x 80 % + 53,000 x 100% + 3,000 x 90 %
= 59,700 units
the equivalent units for conversion costs under the FIFO method are 59,700 units.
On January 2, 2020, Fran acquires a business from Chuck. Among the assets purchased are the following intangibles: patent with a 7-year remaining life, a covenant not to compete for 10 years, and goodwill. Of the purchase price, $140,000 was paid for the patent and $60,000 for the covenant. The amount of the excess of the purchase price over the identifiable assets was $100,000. What is the amount of the amortization de
Answers
Answer:
Total amortization deduction is $20,000
Explanation:
The computation of the amortization deduction is shown below:
Patent $140,000 15 $9,333
Covenant $60,000 15 $4,000
Goodwill $100,000 15 $6,667
Total amortization deduction is $20,000
We simply divded the purchase price of each asset with the life i.e. 15 years
Organizational culture is a system of shared beliefs and values that develops within an organization and guides its members' behavior. Culture can vary considerably across organizations, with each placing different emphases on risk-taking, treatment of employees, teamwork, rules and regulations, conflict and criticism, and rewards. This activity is important because different types of cultures are better suited to achieving different strategic goals, and managers can use this knowledge to their benefit. Match the followings with each other.
a. Daveed
b. Miranda
c. Caprice
d. Olivia
e. Joseph
f. Aaron
g. Wallace
h. Leslie
1. Clan
2. Adhocracy
3. Hierarchy
4. Market
Answers
Answer: See explanation
Explanation:
Clan: Caprice and Joseph
A clan culture is a collaborative environment whereby everyone is involved and valued and the company is one happy family. Therefore, Caprice and Joseph guts in here.
Adhocracy: Miranda and Wallace
Here, the workers are seen as leaders and risk takers and the culture is based on creativity. Therefore, Miranda and Wallace fits in here.
Hierarchy: Aaron and Leslie
This culture is typically based on control and structure, coordination and control.
Market: Daveed and Olivia
Here, the main aim is to achieve results as there's intense competition and there's focus on profit.
Prior service cost is amortized on a straight-line basis over the average remaining service life of active employees or 15 years, whichever is longer. years-of-service method or on a straight-line basis over the average remaining service life of active employees. straight-line basis over 15 years. straight-line basis over the expected future years of service.
Answers
Answer:
years-of-service method or on a straight-line basis over the average remaining service life of active employees
Explanation:
Prior service cost (PSC) is simply defined is an instant hike or increase in PBO that is gotten or as a result of the retroactive application of hike or an increase in profits or benefits for service already given(rendered) the name "prior" service cost is given to it as a result of the service cost of previous years which was increased. An example, a defined benefit pension plan provides benefits equal to 4% of last salary for each year of service rendered. The plan is later worked on to increase the rate 4.23% and
the working on or amendment is is said to be retroactive. The present value of the increased benefits (.23%) earned prior to the adjustment or amendment is PSC. Sometimes, retroactive grant may lower the benefits for service already rendered. Amortization is an accounting technique. It is often used to constantly in a timely or periodic manner to reduce or lower the book value of a loan or intangible asset over a time period that is always set.
The amount to be amortized is gotten by giving equal amount of expense to each future period of service always for employee each and those who is mandated to receive benefits.
Arctic Air Inc. manufactures cooling units for commercial buildings. The price and cost of goods sold for each unit are as follows:
1 Price per unit
$60,000.00
2 Cost of goods sold
28,000.00
3 Gross profit per unit
$32,000.00
In addition, the company incurs selling and administrative expenses of $226,250. The company wishes to assign these costs to its three major customers, Gough Industries, Breen Inc., and The Martin Group. These expenses are related to three major nonmanufacturing activities: customer service, project bidding, and engineering support. The engineering support is in the form of engineering changes that are placed by the customer to change the design of a product. The budgeted activity costs and activity bases associated with these activities are:
1
Activity
Budgeted Activity Cost
Activity Base
2
Customer service
$31,500.00
Number of service requests
3
Project bidding
74,000.00
Number of bids
4
Engineering support
120,750.00
Number of customer design changes
5
Total costs
$226,250.00
Activity-base usage and unit volume information for the three customers is as follows:
Gough Industries
Breen Inc.
The Martin
Group
Total
Number of service requests 36 28 116 180
Number of bids 50 40 95 185
Number of customer design changes 18 35 108 161
Unit volume 30 16 4 50
Required:
1. Determine the activity rates for each of the three nonmanufacturing activity pools. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross profit and income from operations associated with each customer. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Colons (:) will automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations.
Labels
December 31
For the Year Ended December 31
Selling and administrative activities
Amount Descriptions
Breen Inc.
Cost of goods sold
Customer service
Engineering support
Gough Industries
Gross profit
Income from operations
Other income (expense)
Plantwide factory overhead rate
Product cost distortion
Project bidding
Revenues
The Martin Group
Total selling and administrative activities
1. Determine the activity rates for each of the three nonmanufacturing activity pools. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
1 per serv. req.
2 per bid
3 per design change
2. Determine the activity costs allocated to the three customers, using the activity rates in (1). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.
1 Activity Costs
2
3
4
3. Construct customer profitability reports for the three customers, dated for the year ended December 31, using the activity costs in (2). The reports should disclose the gross profit and income from operations associated with each customer. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. Colons (:) will automatically appear if required. Enter all amounts as positive numbers, except for a negative income from operations.
Arctic Air Inc.
Customer Profitability Report
1
Gough Industries
Breen Inc.
The Martin Group
2
3
4
5
6
7
8
9
10
Answers
Answer:
See below
Explanation:
Activity rate = Overhead costs/Estimated driver
Customer service : 175 per serv. req.
Project bidding : 400 per bid
Engineering support : 750 per design change
Activity costs allocated = Activity rate × Driver consumed
Activity costs
Gough industries. 39,800
Been inc. 47,150
The Martin group. 139,300
Artic Air inc.
Customer profitability report for the year ended, December 31
Gough industries Been inc. Martin Grou
Revenues
1,800,000 960,000 240,000
Cost of goods sold
840,000 448,000 112,000
Gross profit
960,000 512,000 128,000
Selling and administrative activities:
Customer service
6,300 4,900 20,300
Project bidding
20,000 16,000 38,000
Engineering support
13,500 26,250 81,000
Total selling and administrative support
39,800 47,150 139,300
Operating income(loss)
920,200 464,850 (11,300)