Depreciation - Real estate and tangible personal property (except land). Amortization - Intangible assets. Depletion - Natural resources. The income statement for almost every business includes depreciation.
Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation. It enables businesses to purchase assets over a predetermined length of time and generate income from those assets. Subtract the asset's cost from its salvage value (what you anticipate it to be worth at the end of its useful life) to determine depreciation using the straight-line technique. The amount that can be depreciated, or the depreciable basis, is the outcome. Subtract this sum from the asset's useful life, which is measured in years. The tractor would depreciate by $5,000 annually under the straight line depreciation technique, amounting to a total of $20,000 in accumulated depreciation. It is regarded as a fully-depreciated asset once the book value reaches the original salvage value. Divide net price (buy price minus salvage price) by the asset's number of usable years to get depreciation on a straight-line basis. Depreciation is used to accurately reflect the value of assets on the books. As assets are used up each year, their values are deducted from the balance sheet and charged to expenses.
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Which of the following methods can be used to compare mutually exclusive repeatable projects with unequal lives if inflation in the costs and/or cash flows of the projects is expected when the projects are repeated?
a. Equivalent annual annuity
b. Replacement chain approach
c. Both a and b can be used
d. None of the above
To compare mutually exclusive repeatable projects with unequal lives if inflation in the costs and/or cash flows of the projects is expected when the projects are repeated, the method that can be used is the replacement chain approach. Hence, the correct option is (B).
What is the Replacement Chain Approach?The replacement chain method is a capital budgeting decision model that compares more than one mutually exclusive capital proposal with unequal lives. This method will compare the time of each alternative and also the rate of return on investment from each option to be able to get the best choice for the company. This also makes each choice that is measured using this method be seen in terms of net present value (NPV).
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When New Firms Enter A Market, Existing Firms Will Sell Than Before, And Their Market Power Will Less More B. When Firms Exit A Market, Remaining Firms Will Sell Than Before, And Their Market....
a. When new firms enter a market, existing firms will sell (less more) than before, and their market power will b. When firms exit a market, remaining firms will sell (less more ) than before, and their market power will c. If there is free exit from and entry into an industry, long-run economic profits will be (equal to zero positive negative) for firms in that industry.
1. When New Firms Enter A Market, Existing Firms Will Sell Than Before, And Their Market Power Will decrease
2. When firms exit the market, remaining firms will sell more than before. And market power will increase.
3. If there is free exit from and entry into an industry, long-run economic profits will be equal to zero.
What is meant by market entry?Market entry refers to all the steps used to introduce a good or service to a new market, whether that market is a new nation, group of people, or client base.
Economists use the phrase "free entry" to refer to a situation in which producers can freely enter the market for an economic good by starting production and selling the commodity. In a similar vein, free exit happens when a firm is free to leave the market when it experiences financial losses.
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"A system of performance measures, including nonfinancial measures, used to assess company and division manager performance is:_______. Multiple Choice
Hurdle rate.
Return on investment
Balanced Scorecard.
Residual income
Investment turnover"
Answer:
it is balanced scorecard
Which is the Fed MOST likely to do in the event of a recession?
A Buy treasury bonds on the open market.
B Sell treasury bonds on the open market.
C Raise the discount rate.
D Raise the reserve requirement.
In the case of a recession, the Fed is MOST LIKELY to increase the reserve requirement.
Which action by the Fed there in event of a downturn is most likely?In the event of severe economic downturns, the Fed may adopt drastic measures to reduce unemployment and boost prices in order to achieve its traditional purpose and give immediate assistance to the American financial sector and economy.
What occurs if the Fed increases the minimum reserve ratio?In the absence of additional measures, raising the reserve requirement ratios reduces the amount of deposits that may be supported by a certain level of reserves, lowers the money supply, and rises the credit cost.
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according to the payback period criterion group of answer choices any project with a payback period > 1.0 is acceptable. a negative payback period represents borrowing rather than lending. a longer payback period represents a more profitable project in the long run. a shorter payback period represents a more rapid return of investment. a shorter payback period represents a higher cost of capital.
According to the payback period, a shorter payback period represents a higher cost of capital.
Any economic resource assessed in terms of money that is utilized by company owners and entrepreneurs to purchase the materials they require to produce their goods or to offer their services to the economic sector on which their operations are based is known as capital.
To put it another way, financial capital is the internal retained earnings that a firm generates or the money that lenders and investors give to businesses in order to buy real capital equipment or services for manufacturing new goods and/or services. Real capital, on the other hand, consists of tangible items that are used in the creation of additional products and services.
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When a transfer price decreases:
1. the costs of the division using the intermediate product will fall
2. the revenues of the division using the intermediate product will rise
3. the costs of the division making the intermediate product will fall
4. the profits of the division using the intermediate product will rise
5. both A&D
When components are manufactured internally, they must be priced as they move between departments. Market-based pricing can be used, prices can be set internally, and departments can negotiate prices.
When a transfer's cost goes down: c. The division that makes use of the intermediate product will make more money, and d. The division that makes use of the intermediate product will pay less money.
A lower price when one division buys from another will increase the revenue and profits of the buying division, just as purchasing components from another company at a lower price will reduce costs and increase profit.
What effect does transfer pricing have?The establishment of prices for the goods and services traded between subsidiaries, affiliates, or commonly controlled businesses that are a part of the same larger enterprise is made possible by transfer pricing. Corporations may be able to save money on taxes through transfer pricing, but tax authorities may challenge their claims.
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level of the fair value hierarchy reflects the use of unobservable inputs, or inputs that rely heavily on management assumptions.
Level 3 information sources are imperceptible contributions for the resource or risk. Imperceptible data sources ought to be utilized to gauge fair worth to the degree that recognizable data sources are not accessible.
What are Level 3 information sources?
Level 3 information is imperceptible information. It might incorporate the organization's own information, adapted to other actually accessible data. These sources of info ought to mirror the presumptions that would be utilized by market members to figure out costs, including suspicions about risk.
Level 3 resources and liabilities incorporate monetary instruments whose worth is resolved to utilize evaluating models, limited income strategies, or comparable methods, as well as instruments for which assurance of fair worth requires huge administration judgment or assessment.
Level 3 information sources are imperceptible contributions for the resource or risk. Imperceptible data sources ought to be utilized to gauge fair worth to the degree that recognizable data sources are not accessible.
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Budgeting - The Production Budget (2pts): Spanasonic Co. manufactures batteries for electric vehicles. Management reports ending finished goods inventory for the third quarter of 2022 at 24,000 units. The following unit sales are budgeted for fourth quarter 2022 and first three quarters of 2023: - fourth quarter 2022: 120,000 units - first quarter 2023: 125,000 units - second quarter 2023: 122,500 units - third quarter 2023: 128,000 units Company policy calls for the ending finished goods inventory of a quarter to equal
20%
of the next quarter's budgeted unit sales. Prepare a production budget for the period covering fourth quarter 2022 and first and second quarters of 2023 that shows the budgeted number of batteries the firm would need to manufacture. Use proper formatting, making sure to include the firm's name, the name of the budget, and the budget period. You must show all of your work.
Production budgets are used by manufacturers to determine the quantity of product units that will be produced. Based on the predicted sales, the production budget is chosen.
Regarding projected inventory levels, it is modified in accordance with the company's inventory policy. A manufacturer creates cost budgets for the direct materials, direct labour, and overhead expenses needed for manufacturing based on the production budget.
The company's inventory policy should be kept in mind while creating a production budget. The production budget is built on the sales budget, with changes made for starting and ending inventories.
The company's inventory management strategy affects the production budget as well. Depending on the company's strategic outlook, inventories may be increased or decreased.
For the given question, the production budget is prepared and attached in the form of an image.
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for which of the following taxes is there no limit on the amount of annual earnings subject to the tax? multiple choice federal unemployment tax social security tax federal income tax state unemployment tax
There is no limit on the amount of annual earnings subject to the tax known as Federal Income Tax, which means option C is correct.
Federal income tax is the tax levied by federal government on the annual income of the person in a financial year. The taxes on food, clothes, gifts, salaries etc. also comes under Income Tax. In most countries, these taxes are progressive in nature, which means more the income, more will be the taxes. This is done to prevent low wage workers from spending their most money in the form of taxes, with which they might earn a daily bread for an extra day. All the employees working in formal sector, organizations and trusts are liable to pay income taxes. There are several brackets made for income taxes based on the salary.
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If the demand for loanable funds shifts right and the supply of loanable funds shift right, then
a) the real interest rate falls and the equilibrium quantity of loanable funds rises.
b) the real interest rate and the equilibrium quantity of loanable funds both rise.
c) the real interest rate is indeterminate but the equilibrium quantity of loanable funds rises.
d) the real interest rate and the equilibrium quantity of loanable funds both fall.
e) the real interest rate rises and the equilibrium quantify of loanable funds falls.
If both the supply and the demand of loanable funds shift to the right, then (c) the actual interest rate is deterministic but the maximum level of loanable funds advances. IS THE CORRECT Response
What causes the rightward movement in the quantity of loanable funds?
The availability of loanable cash rises as households become more frugal, that is, as households decide to save more. The production schedule for loanable funds in Figure is shifted down and to the right as a result of the increase in supply, ceteris paribus, which lowers the optimum interest rate
.What will occur if the market forces for loanable funds transform?
The necessity for loanable funds has changed. As a result, there will be a greater demand for loanable funds, which raises the current interest rate. In other words, when the industry is performing well, we would anticipate seeing an increase in real interest rates and the number of funding provided.
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After your surgery, you tell me that you can't walk your dog anymore. You ask me to walk your dog for $50 a week, and I agree. This Monday, I began walking your dog. We have a(n) __________.
After your surgery, you tell me that you can't walk your dog anymore. You ask me to walk your dog for $50 a week, and I agree. This Monday, I began walking your dog. We have a(n) contract.
The dog is the ancestor of the domesticated wolf. The wolf that lives today is the dog's nearest living relative. The dog is a species of extinct Pleistocene wolf, also referred to as the domestic dog. Around 15,000 years ago, when agriculture first began, hunter-gatherers domesticated dogs as the first species. As a result of their extensive interaction with people, dogs have evolved the ability to thrive on a diet high in starch, which would be insufficient for other canids. The dog has undergone thousands of years of selective breeding to develop a variety of behaviors, sensory abilities, and anatomical traits. The appearance, size, and color of different dog breeds vary widely.
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when a firm experiences continually declining average total costs, group of answer choices a. society is better served by having one firm supply the product. b. the firm will earn higher profits than if average total costs are increasing. c. the firm is a price taker. d. all of the above are correct.
If the price is less than the average variable cost in the short term, a profit-maximizing firm in a price-taker market will unquestionably discontinue output.
A price-taker is a person or organization that must accept market pricing because it lacks the market share to do it independently. Due to market competition, the majority of producers are also price takers. A business in a price-taker market that seeks to maximize profits would undoubtedly stop producing if the price were to fall below the average variable cost in the short term. Since they all adhere to the same principle of profit maximization, perfect competition, pure monopoly, and monopolistic competition are all comparable to one another. In each of the aforementioned market configurations, businesses set their marginal revenue and marginal cost to equal levels in an effort to maximize profits.
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If an agent needs to borrow money for a business venture, which of the following customers could he borrow from?
A) Any accredited investor
B) Borrowing from customers is always prohibited
C) An established customer with whom the agent has been doing business for at least one year
D) A lending institution
For a business venture, the agent could borrow money from: (D) A lending institution.
Business is defined as the practice of making money by performing any activity like buying and selling or products, or any other. A person engaged in business usually owns an organization or entity. When a person earns money for self, it is called profitable business while when it is nor for self purpose it is called charitable.
Lending institution is the organization that offers loans. The example of the same are banks, credit unions, etc. It is preferable to borrow money from lending institutions because they offer large amount of money in short period of time with right amount of interest.
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after successfully exporting its products through export merchants, boyes inc. decides to take control of its exports. it sets up its own unit in the home country that takes care of all export-related activities. boyes inc. is most likely using . group of answer choices
Boyes Inc. is most likely using domestic-based export department
Modern economies rely heavily on exports because they give people and businesses access to a wide variety of new markets. Fostering economic commerce, boosting exports and imports for the advantage of all trading parties, is one of the main goals of diplomacy and foreign policy between countries.
Export agents with domestic offices look for and deal with international buyers for a commission. Companies engaged in trading are a part of this group. Cooperative groups, which are partially under their administrative authority, carry out exporting activities on behalf of several producers.
Eventually, businesses might decide to handle their own exports. The potential return is slightly higher, but so is the investment and risk.
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one of the ____ of data warehouses is their ability to provide access and analysis of information from a variety of subject areas. hurdles disadvantages advantages difficulties
one of the advantages of data warehouses is their ability to provide access and analysis of information from a variety of subject areas.
What is a data warehouse?
A particular form of data management system called a "data warehouse" is intended to facilitate and support business intelligence (BI) activities, particularly analytics. Data warehouses frequently have a lot of historical data and are only meant to be used for queries and analysis. A data warehouse typically uses a variety of sources, including transaction programms and application log files.
Large volumes of data from many sources are centralized and consolidated in a data warehouse. Organizations can gain useful business insights from their data using its analytical skills to enhance decision-making. It creates a historical record over time that data scientists and business analysts can use to their advantage. A data warehouse can be thought of as the "single source of truth" for an organisation because of these features.
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When a specific account receivable is determined to be uncollectible, which of the following occur? (Select all that apply.)Bad debt expense is recognizedSales revenue is recognizedAllowance account is reducedAccount receivable is reduced
The correct option is C : The allowance account is reduced. You must reverse the write-off item and record the payment when you receive money that you wrote off as uncollectable.
Increase the accounts receivable account with a debit and decrease the allowances for doubtful accounts account with a credit to reverse the write-off entry.
It is an accounting technique in which the value of accounts receivable (AR) on a company's balance sheet is discounted in exchange for cash balances.
When a certain customer's account is determined to be uncollectible, the journal entry used to write off the account is as follows: Accounts Receivable credit (to remove the amount that will not be collected) A reduction in the Allowance for Doubtful Accounts (to reduce the Allowance balance that was previously established)
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Full Question ;
When a specific account receivable is determined to be uncollectible, which of the following occur? (Select all that apply.
A Net income is reduced.
B The gross amount of accounts receivables is reduced.
C The allowance account is reduced.
D Bad debt expense is increased.
Entrepreneurs are goal-oriented and tend to cite which of the following as a reason for going into business?
Entrepreneurs are goal-oriented and tend to cite control as a reason for going into business.
What should a business person expect while beginning a strategy?
The key supposition we should make in business venture is the possibility that the best way to do things right is to do them yourself. This implies that we want to face challenges and furthermore need trust in our range of abilities so we can deliver quality work while keeping an uplifting outlook.
What is business person business venture?
A business person is a person who makes another business, bearing the vast majority of the dangers and appreciating a large portion of the prizes. The method involved with setting up a business is known as business venture. The business visionary is usually viewed as a pioneer, a wellspring of groundbreaking thoughts, products, administrations, and business/or systems.
What makes a business person?
However, research shows that best business visionaries share specific individual ascribes, including inventiveness, commitment, assurance, adaptability, initiative, enthusiasm, self-assurance, and "smarts". Innovativeness is the flash that drives the improvement of new items, administrations, or ways of carrying on with work.
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When recording journal entries for production costs using a standard cost accounting system, the favorable variances are recorded as ____ and the unfavorable variances are recorded as ______.
credits; debits
When recording journal entries for production costs using a standard cost accounting system, the favorable variances are recorded as credit and the unfavorable variances are recorded as debit.
Due to the fact that manufacturers are unable to estimate exact costs in advance, standard costing is the technique of estimating costs during the production process. This methodology is used by manufacturers to forecast future costs for a variety of factors, including labour, materials, production, and overhead.
The production team uses this information to estimate anticipated expenses and create budgets and plans accordingly. The terms projected cost, predetermined cost, expected cost, and budgeted cost are all used to describe standard costs. Even before the production process is finished, standard costing aids manufacturers in setting the prices of the finished goods.
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which of the following principles best describes the current method of accounting for research and development costs? group of answer choices associating cause and effect systematic and rational allocation income tax minimization immediate recognition as an expense
Immediate recognition as an expense best describes the current method of accounting for research and development costs.
The US generally accepted accounting rules include a minor but crucial component known as the expense recognition principle (GAAP). Income statements and balance sheet numbers can be distorted by improper expense recognition, resulting in restated financial results.
The most natural way to record an expense is through immediate recognition. With this approach, we count an expense as soon as it is incurred. For instance, we are able to rapidly identify fixed recurring costs like rent, utilities, and selling prices.
Those companies that use accrual accounting apply the matching concept. Since you will record expenses and revenues as cash comes into or leaves your accounts, the expense recognition principle does not apply to you if you utilize cash accounting.
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which one of the following is most likely to be an effective or attractive way to try to reduce manufacturing costs per pair produced at a particular plant?
Taking steps that will make it easier for the business to run its plants at (or close to) full production capacity, including making the most of overtime.
Labor, raw materials, and facilities are all necessary to complete the manufacturing process, and these are referred to as factory overhead. Add these three elements together to get a product's manufacturing cost, which can vary based on production and resource efficiency.
Why is cutting production costs important?Manufacturing cost reduction is important because it has the potential to boost revenue and profitability. Since costs can come in many different forms, it's important to know what costs are associated with the manufacturing process and how to cut them down as much as possible.
Which KPI is utilized for cost reduction?Cost reduction is a crucial KPI in procurement management, just like the procurement ROI. It measures the actual savings made through a variety of cost and procurement management strategies. By comparing the old and new costs of the good or service, this KPI can be measured.
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7. utilizing the chicken wing production function that we completed in the module 2 homework assignment which would have the following answers, respond to the questions given, assuming the firm is a perfectly competitive firm:
The firm is a perfectly competitive firm: is Price = $2.50
Output TC MC TR MR Profit
188 462.5 - 470 - 7.5
185 547.5 1.3 462.5 2.5 -85
242 632.5 1.5 605 2.5 -27.5
293 717.5 1.7 732.5 2.5 15
331 802.5 2.2 827.5 2.5 25
360 887.5 2.9 900 2.5 12.5
Profit maximization output occurs when MR = MC or they are close to each other. In the above table, profit is maximized when the output level is 331 and profit at this output level is 25. Yes, the firm is making a profit above the total cost.
B) Price = $2.00
Output TC MC TR MR Profit
188 462.5 - 376 - -86.5
185 547.5 1.3 370 2 -177.5
242 632.5 1.5 484 2 -148.5
293 717.5 1.7 586 2 -131.5
331 802.5 2.2 662 2 -140.5
360 887.5 2.9 720 2 -167.5
The firm is not making a profit at any level of output. The firm should produce an output level of 188. The firm is covering the variable cost and some part of fixed cost which means the firm should remain in the business and continue production.
C) Firm shut down point occurs when AVC is at its minimum which occurs when the output level is more than 184 and less than 294.
The firm break-even point occurs when ATC is at its minimum which occurs when the output level is more than 292 and less than 332.
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Which of the following correctly identifies a fiscal policy and a monetary policy that would be used to combat inflation?
Fiscal policy aims to reduce consumer spending and industry investment in inflationary times by increasing taxes or cutting government spending.
Which philosophy has a significant tendency to support the right to school prayer?Contrary to what is known as social liberalism, the word "social conservatism" refers to conservative viewpoints on social and cultural problems such abortion, same-sex marriage, and school prayer (cultural liberalism).
Which fiscal or monetary strategy is better at stabilizing a recession-hit economy?He explains that the conventional wisdom has been to rely on monetary policy by decreasing interest rates during a recession. When that strategy fails, the focus usually shifts to fiscal policy, such issuing stimulus cheques. He observes that once rates fall too low, further reductions are impossible.
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Kiley Corporation had these transactions during 2022.Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.(a) Purchased a machine for $30,000, giving a long-term note in exchange.(b) Issued $50,000 par value common stock for cash.(c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.(d) Declared and paid a cash dividend of $13,000.(e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.(f) Collected $16,000 from sale of goods.(g) Paid $18,000 to suppliers.select an option:Financing ActivitiesInvesting ActivitiesOperating ActivitiesNoncash Investing and Financing Activities
The analysis of Kiley Corporation's 2022 transactions, indicating whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity, is as follows:
Operating Activities:f) Collected $16,000 from sale of goods.
g) Paid $18,000 to suppliers
Investing Activities:e) Sold a long-term investment with a cost of $15,000 for $15,000 cash.
Financing Activities:b) Issued $50,000 par value common stock for cash.
d) Declared and paid a cash dividend of $13,000.
Noncash Investing and Financing Activities:a) Purchased a machine for $30,000, giving a long-term note in exchange.
c) Issued $200,000 par value common stock upon conversion of bonds having a face value of $200,000.
What are the operating activities?The operating activities refer to the company's core business activities, including
ManufacturingDistributionMarketingSelling.What are the financing activities?The financing activities deal with the acquisition and repayment of finance, and payment of returns (interests and dividends).
What are the investing activities?The investing activities are the acquisition and sale of long-term assets and investments.
Finally, the non-cash investing and financing activities refer to investing and financing activities that do no involve cash movements.
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Magpie Corporation uses the total cost method of product pricing. Below is cost information for the production and sale of 60,000 units of its sole product. Magpie desires a profit equal to a 25% return on invested assets of $700,000. Fixed factory overhead cost $38,700 Fixed selling and administrative costs 7,500 Variable direct materials cost per unit 4.60 Variable direct labor cost per unit Variable factory overhead cost per unit Variable selling and administrative cost per unit The markup percentage on total cost for Magpie's product is 15.8% 24.0% 21.0% 22.6%
The markup percentage on total cost for Magpie's product is 1.77%. Cost is the amount of money, time, or resources required to produce, obtain, or accomplish something.
In business, cost is typically used to refer to the expense associated with producing a good or service, such as the cost of labor, materials, and overhead. In personal finance, cost can refer to the amount of money required to purchase something or the amount of money lost in a financial transaction. In economics, cost can also refer to the opportunity cost, which is the value of the next best alternative that must be given up in order to pursue a certain action or course of action.
To determine the price per unit that Magpie Corporation needs to charge to achieve a 25% return on invested assets, you will need to first calculate the total cost per unit by adding together all of the fixed and variable costs.
First, add the fixed costs to get the total fixed cost: $38,700 + $7,500 = $46,200
Then, multiply the number of units being produced (60,000) by the variable direct materials cost per unit ($4.60), the variable direct labor cost per unit, the variable factory overhead cost per unit, and the variable selling and administrative cost per unit to get the total variable cost.
For example, if the variable direct labor cost per unit is $24.00, the variable factory overhead cost per unit is $21.00, and the variable selling and administrative cost per unit is $22.60, the total variable cost would be:
60,000 * $4.60 + 60,000 * $24.00 + 60,000 * $21.00 + 60,000 * $22.60 = $2,760,000
Then, add the total fixed cost and total variable cost to get the total cost: $46,200 + $2,760,000 = $2,806,200
Next, calculate the desired profit by multiplying the invested assets by the desired return on invested assets:
$700,000 * 0.25 = $175,000
Then, add the desired profit to the total cost to get the desired price: $2,806,200 + $175,000 = $2,981,200
Finally, divide the desired price by the number of units being produced to get the price per unit:
$2,981,200 / 60,000 = $49.68 per unit
The markup percentage on total cost for Magpie's product can be calculated by dividing the desired price by the total cost and then multiplying by 100%.
For example, to calculate the markup percentage if the desired price is $49.68 per unit and the total cost is $2,806,200:
($49.68 / $2,806,200) * 100% = 1.77%
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a company issues 1,000 shares of its $5 par common stock that has a market value of $10 and 1,000 shares of its $20 par preferred stock that has no established market value for a lump sum of $50,000. therefore, $10,000 of the proceeds will be allocated to the common stock accounts and $40,000 to the preferred accounts.
The amount to be allocated to the common stock is $6000. The given statement is false.
Given that,:
Number of common stocks issued = 1000
Value of common stock = $5
Market value per share = $10
Number of shares of $20 par value = 1,000
Preferred stock having a fair value of $20 per share = $50,000
Total market value of the stocks = 1,000 × $10 + 1,000 × 20 = $30,000
Now,
The proceeds that should be allocated to the common stock will be:
(Total market value of the common stocks/total market value of the shares)*Preferred value of total stocks
= (1000*10/50000)*30000
=$6000
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Carns Company is considering eliminating its Small Tools Division, which reported a loss for the prior year of $215,000 as shown below.
Segment Income (Loss)
Sales $ 1,440,000
Variable costs 1,305,000
Contribution margin 135,000
Fixed costs 350,000
Income (loss) $ (215,000)
If the Small Tools Division is dropped, all of its variable costs are avoidable, and $105,000 of its fixed costs are avoidable. The impact on Carnsâs income from eliminating the Small Tools Division would be:
Multiple Choice
$63,500 decrease
$30,000 decrease
$350,000 decrease
$30,000 increase
$105,000 decrease
Carns Company is considering exiting its Small Tools division, which posted a loss of $215,000 last year, as shown below the $30,000 decline.
Contribution margin or dollar profit per unit is the selling price per unit minus the variable cost per unit. "Contribution" represents the portion of sales that is not consumed by variable costs and contributes to covering fixed costs.
This is an accounting term that helps business owners and managers track the profitability of their products. Understanding contribution margin is important. Because the contribution margin shows how much of a product's sales covers fixed costs and contributes to the company's profit.
This is an accounting term that helps business owners and managers track the profitability of their products. Understanding contribution margin is important. Because the contribution margin shows how much of a product's sales covers fixed costs and contributes to the company's profit.
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Match each inequality or equality to the corresponding term for the monopolistic competitor operating at optimal, short-run production levels. Drag each item on the left to its matching item on the right. short-run economic profit price = average total cost" price > marginal revenue short-run economic loss price < average total cost" market power price > average total cost (ATC) zero economic profit price > marginal cost markup
Pure monopoly and pure competition are the opposing limiting cases. Monopolistic competition exists between those two.
Monopolistic competition is distinguished by the fact that, despite being closely related to one another, the products of various firms are not all the same but rather differ from one another. As numerous businesses compete to sell their products, there is also a component of competition.
Price=Average Total Cost Total Revenue is equal to total cost so there
is zero economic profit.
Price>ATC It means that firm is earning short run
economic profit.
Price<ATC It means firm is earning Short Run Economic
Loss
Price> Marginal Revenue It means firm has market power
Price>Marginal Cost Mark up
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Gideon Company uses the allowance method of accounting for uncollectible accounts. On May 3, the Gideon Company wrote off the $3,500 uncollectible account of its customer, A. Hopkins. On July 10, Gideon received a check for the full amount of $3,500 from Hopkins. The entry or entries Gideon makes to record the write off of the account on May 3 is: A Accounts Receivable—A. Hopkins 3,500 Bad debts expense 3,500 Cash 3,500 Accounts Receivable—A. Hopkins 3,500 B Allowance for Doubtful Accounts 3,500 Accounts Receivable—A. Hopkins 3,500 C Cash 3,500 Accounts Receivable—A. Hopkins 3,500 D Accounts Receivable—A. Hopkins 3,500 Allowance for Doubtful Accounts 3,500 E Allowance for Doubtful Accounts 3,500 Bad debts expense 3,500
The allowance methodology records an estimate of debt within the same accounting amount because of the sale. for instance, if a firm uses two sales to calculate debt and sales were $100,000.
The quantity of $2,000 is going to be debited to debt expense with a corresponding credit to allowance for uncertain accounts. To record the write-off account, the allowance is going to be debited with a credit to the assets account. This methodology is assemblage compliant as a result of debt expense being recorded within the same amount because of the sale.
Allowance for doubtful accounts will be debited with a 2000
Accounts receivable-A Hopkins will be credited with 2000
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adult workers can actively affect their future cognitive development through the choices they make, since those who seek more stimulating opportunities are likely to remain sharp.
Through their leadership decisions, adult workers may actively influence how their brains will develop in the future since those who seek out more exciting chances are more likely to stay mentally sharp.
Adult cognitive development comprises a drop in information processing speed and a stronger ability to combine emotion and reasoning while making judgments. Late-life cognitive development is characterized by memory changes, intellectual shifts, and neurocognitive problems. You probably think of wisdom as something that comes with age. One prevalent misconception regarding aging is that wisdom increases with age.
The capacity to tolerate uncertainty, reach judgments, and resolve disagreement are all components of wisdom. While some research indicates that wisdom increases steadily between the ages of 13 and 25 and remains stable until the age of 75, other research indicates that people in their 70s and older have greater wisdom than people in their 20s. In either case, it may be unwise to assume that older people are wise simply because of their age.
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Industries that have ______ tasks and operate in a ______ environment demonstrated the greatest need for project management.A. Simple; dynamic
B. Simple; static
C. Complex; dynamic
D. Complex; static
Industries that have complex tasks and operate in a dynamic environment demonstrated the greatest need for project management. Hence, option (C) will be regarded as suitable.
Give a brief account on project management.The practice of arranging a team's work to fulfill all project goals within the specified time and financial constraints is regarded as project management. In-depth descriptions of this information are often provided in the project documentation prepared at the start of the development period. Scope, time, and financial restrictions are the main ones. Utilizing resources as efficiently as feasible to carry out specified aims represents the second challenge.
The objective of project management is to provide a final product that satisfies the client's objectives. The aim of project management is frequently to additionally restructure or alter the client's brief so that it may genuinely achieve the client's objectives. Once the client's goals are made apparent, they should have a bearing on any choices that other project participants make.
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