Answer: A) omitted from financial-statement disclosure
Explanation: significant accounting policies may not be omitted from financial statement disclosure because it allows, among many other benefits, for financial statements to be compared with other entities when they are clearly shown. It also helps prevents losses and the misuse of assets. It allows both present and potential investors to be able to study open accounting policies in order to make informed decisions and/or before investing in a business.
An “accounting disclosure” is a statement that outlines the financial policies of a firm, showing expenses and profits over a time period.
Answer:
Avoidable fixed costs = $75,000 - $19,500 = $55,500
Segment margin = Contribution margin - Avoidable fixed costs
Segment margin = $25,000 - $55,500
Segment margin = -$30,500
If the department were eliminated, the company would eliminate the department's negative segment margin of $30,500
Answer:
The journal entries are shown below
Explanation:
The journal entries are as follows
a. Product warranty expense $13,590 ($151,000 × 9%)
To Product warranty payable $13,590
(Being the warranty estimated expense is recorded)
b. Product warranty payable $207
To Supplies $120
To Wages payable $87
(Being the warranty work is recorded)
Only these two entries are passed
Answer:
a. The supplier has more bargaining power than the firm.
Explanation:
This is an example of one of Porters' five forces. The supplier has a monopoly and thus entertains a high market share. This means that the supplier has more bargaining power than the firm as if the firm wants the ceramic there are no alternative options available for the firm; however, if the firm does not want supplies, the supplier can find plenty of firms that may need the ceramic thus making supplier more powerful than the firm.
Hope that helps.
