Answer:
Sole proprietorship
Explanation:
The characteristics of Sole Proprietorship includes unlimited liability and the owner of the business runs the business. In this case, the owner Holly is legal owner of the business and is involved in the marketing and production of the business. As the business is not registered as a company, the liability is unlimited which meets the criteria of sole proprietorship.
Available Options:
a) The budget helps motivate employees to achieve sales growth and cost-reduction goals.
b) The budget provides managers with a benchmark against which to compare actual results for performance evaluation.
c) The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
d) All of the above.
Answer:
Option D. All of the above.
Explanation:
The reason is that when budgets are set every personnel in the organization is given a task along with the restriction on the use of excessive resources of the company by generating a standard number of output, which is benefitial to the company and the managers as well.
Furthermore, standard costs are used in budgeting to estimate the costs of the operations of the company which means that the standard cost would be used for actual units to compare the actual results to make meaningful conclusions.
At the end, the main benefit of the budgeting is that it highlights the potential issues in the operating systems of the organization which must be corrected to avoid the same advers outcome in the future.
So all of the statements are correct.
The more complex the task the more difficult it is to reach goals. People are more likely to achieve goals when tasks are easier. Simplifying tasks can help goal setting.
Answer:
Depreciation expense = $13,130
Book value = $46,740
Explanation:
Depreciation is a method of expensing the cost of an asset.
Depreciation expense using the straight line method = (Cost of asset - salvage value) / useful life
($73,000 - $7,350) / 5 = $13,130
The depreciation expense each year would be $13,130.
Book value = Cost of asset - Depreciation expense
In December 2021, the book value would be = $73,000 - $13,130 = $59,870
In December 2022, the book value would be = $59,870 - $13,130 = $46,740
I hope my answer helps you
Answer:
CRS would not benefit from dropping Donnelly’s Pizza because it would lose $43,680 in revenues and save $43,344 in costs resulting in a $336 decrease in operating income.
Explanation:
Difference: Incremental(Loss in Revenues)and Savings in Costs from dropping Donnelly’s Pizza:
Revenues $(43,680)
Cost of goods sold 26,180
Order processing ($14,000 – 10% × $14,000)= 12,600
Delivery ($3,500 – 20% × $3,500)= 2,800
Rush orders 924
Sales calls 840
Total costs 43,444
Effect on operating income (loss)
$(336)
