Answer:
Increase in the estimated life of depreciable assets
Opinion of third parties
Explanation:
If management reports truthfully, the economic events that are likely to prompt the following accounting changes are an increase in the estimated life of depreciable assets.
The features of accounting, that would make it costly for dishonest managers to make the same changes without any corresponding economic changes is auditing.
Auditiors are the third parties which provide a clean account of the financial statement of the company, therefore if the changes in the accounting policy are consistent with economic changes, the audits will not provide a clean account of the financial statement
Answer: Option c
Explanation: In simple words, standard cost refers to the estimated amount of resources that an organisation thinks would be incurred to produce a specified amount of goods or service for the product.
These estimates are based on past experiences and future expectations, therefore, these are not certain and have a high chance that a difference will occur in actual performance. These estimates works as a guideline for performance, thus, it is prepared by the top managers of the departments of the entity.
Answer:
See below.
Explanation:
In order to calculate setup cost allocation per unit, we first calculate the total setup costs for each product. These costs are then divided on the cost base which is the direct labor hours for each unit.
Total setup costs:
Plus
Direct Labor hours = 1,000
Setups = 20
Total costs = 20 * 1080 = $21,600
Total Setup Cost / labor hour = 21600 / 1000 = $21.6
Max
Direct Labor hours = 80,000
Setups = 40
Total costs = 40 * 1080 = $43,200
Total Setup Cost / labor hour = 43200 / 80000 = $0.54
We can calculate peer unit allocation of each product by multiplying the per hour rate calculated above with the number of hours used to make each product.
Plus = 21.6 * 5 = $108
Max = 0.54 * 5 = $2.7
These are the costs allocated per unit.
Hope that helps.
Answer: $61,500
Explanation:
Jerry's adjusted basis in his partnership interest at the end of the year is determined by adding his cash contributions, long-term capital gain, and qualified dividends to the original tax basis.
There will also be deductions of the non-deductible expenses, ordinary loss and his share of the reduction in partnership debt.
Jerry's adjusted basis at the end of the year = ( 44,000 + 26,000 + 3,600 4,600) - ( 2,100 + 9,000 + 5,600)
= 78,200 - 16,700
= $61,500
Answer: Under the given conditions, the following actions would likely occur in one but not the other industrializing economy: <u><em>Investment in loans to support independent start-ups </em></u>
Here, in this particular case, The leaders of the first favor a command economic system. The leaders of the second want to try more free market-based policies.
Once industrialized an economy will start investment in loans to support independent start-ups.
<u><em>Therefore, the correct option is (c)</em></u>
