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2 years ago

What characteristics of an organizational structure and culture are best suited to achieving a cost-leadership strategy

1 answer:

4 0

An informal type of organizational structure is one best suited for achieving a cost-leadership strategy especially when the managers is promoting innovation.

<h3>What is a cost leadership strategy?</h3>

This is a cost strategy that relies on a firm's ability in using a lower costs of production to offer quality products at low prices.

These type of strategy is best achieved with an informal type of organizational structure & culture.

Read more about cost leadership strategy

<em>brainly.com/question/26891629</em>

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A pressurized spray painter was purchased on April 1 of the fiscal year for $3,900. It has a useful life of 4 years and a residu

WITCHER [35]

Explanation:

The computation of the depreciation expense for the first year and the second year is shown below:

a) Straight-line method:

= (Original cost - residual value) ÷ (useful life)

= ($3,900 - $300) ÷ (4 years)

= ($3,600) ÷ (4 years)

= $900

In this method, the depreciation is same for all the remaining useful life

So, in year 2 the depreciation expense is also $900

(b) Double-declining balance method:

First we have to find the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 4

= 25%

Now the rate is double So, 50%

In year 1, the original cost is $3,900, so the depreciation is $1,950 after applying the 50% depreciation rate

And, in year 2, the $1,950 × 50% = $975

3 0

3 years ago

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time p

3241004551 [841]

Answer:

The answer is aging of accounts receivable method.

Explanation:

This method helps accountants in determining how much of a company’s account receivables would not be collected. This is related to unpaid invoices of a company’s customers. Though invoices usually have due dates, according to the company, customers who haven’t paid even after the due date has passed must be calculated using this method for more accurate accounting reporting.

8 0

3 years ago

Cullumber Company has the following balances in selected accounts on December 31, 2020.

wolverine [178]

Answer and Explanation:

The adjusting entries are shown below:

1. Interest expense [$11,400 × 9% × 4 ÷ 12] $342

To Interest payable $342

(being accrued interest expense is recorded)

2. Supplies expense [$2,200 - $820] $1,380

To Supplies $1,380

[Being supplies expense is recorded]

3. Depreciation expense $1,200

To Accumulated depreciation-Equipment $1,200

[Being depreciation expense is recorded]

4 Insurance expense [$3,960 × 7 ÷ 12] $2,310

To Prepaid insurance $2,310

[being insurance expense is recorded]

5 Unearned service revenue $7,000

To Service revenue $7,000

[Being revenue from unearned is recorded]

6 Accounts receivable $4,200

To Service revenue $4,200

[Being accrued service revenue is recorded]

7 Salaries expense [$5,400 × 3 ÷ 5] $3,240

To Salaries payable $3,240

[being accrued salaries expense is recorded]

4 0

3 years ago

On January 1, 2012, Albert invested $6,000 at 8 percent interest per year for three years. The CPI (times 100) on January 1, 201

qaws [65]

Answer:

Inflation in 2012:

$=\frac{CPI\ 2013 - CPI\ 2012}{CPI\ 2012}$

$=\frac{110 - 100}{100}$

= 10%

Inflation in 2013:

$=\frac{CPI\ 2014 - CPI\ 2013}{CPI\ 2013}$

$=\frac{120 - 110}{110}$

= 9.09%

Inflation in 2014:

$=\frac{CPI\ 2015 - CPI\ 2014}{CPI\ 2014}$

$=\frac{126 - 120}{120}$

= 5%

Real rate of interest = Nominal - inflation

Given that,

Nominal rate = 8%

Therefore,

Real interest rate is as follows:

2012:

= 8% - 10%

= -2%

2013:

= 8% - 9.09%

= -1.09%

2014:

= 8% - 5%

= 3%

$6000 at 8% grows to:

= 1000 × 1.08

= $6,480 in one year

which is invested again to grow to $6,998.4 in two years

which is invested again to grow to $7,558.272 in three years

so,

Total gain:

$=\frac{7,558.272-6,000}{6000}\times100$

= 25.9712%

The price level increases in three years by:

$=\frac{CPI\ 2015 - CPI\ 2012}{CPI\ 2012}\times 100$

$=\frac{126 - 100}{100}\times 100$

= 26%

So,

Total real rate of return:

= Total gain - Percentage increase in prices

= 25.9712 - 26

= -0.0288%

5 0

3 years ago

The following data have been provided by Letze Corporation from its activity-based costing accounting system: Factory supervisio

Alex Ar [27]

Answer:

Letze Corporation

Overhead allocation to Batch Set-Up:

Factory supervision = 55% of $460,000 = $253,000

Indirect factory labor = 60% of $220,000 132,000

Total overhead assigned $385,000

Explanation:

a) Data and Calculations:

Factory supervision $ 460,000

Indirect factory labor $ 220,000

Distribution of Resource Consumption across Activity Cost Pools:

Activity Cost Pools

Batch Set-Up Expediting Other Total

Factory supervision 55% 35% 10% 100%

Indirect factory labor 60% 20% 20% 100%

b) Letze Corporation can use Activity-Based Costing as a system of cost accumulation and allocation based on activity cost pools so that overhead costs are assigned based on the level of activity which each cost pool generates. It tries to tie costs to the activities that generate them.

3 0

3 years ago