Answer:
<u>income statement using an absorption income statement format.</u>
Sales ( 480 × $1,960) 940,800
Less Cost of Sales ( 480×$1,350) (648,000)
Gross Profit 292,800
Less Operating Expenses
Variable selling and administrative expenses (480×$40) (19,200)
Fixed selling and administrative expenses $225,000 (225,000)
Interest Expense ($12,000)
Net Income $36,600
Explanation:
Absorption Costing Considers BOTH variable and fixed costs in product cost.Non-Manufacturing are treated as period costs.
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<u>Answer:</u>
Answer for Part A and Part B is as follows:
Particulars 2016 year 2017 year
Contract Price $13,00,000 $13,00,000
Cost that has been incurred $675000 $950000
Estimated cost to complete $225000 $0
TOTAL COST $900000 $950000
Expected Gross profit $400000 $350000
Percentage that is completed 75 percent 100percent
Gross profit to be recognised $300000 $50000
<u>Note</u>: Calculations have been made according to the data and figures given in the question.
Answer:
Take actions by sending the due payments to a collection company.
Explanation:
Collection companies specialise in recovery of funds that are due. These companies can be used by lenders or creditors to get back their money from clients.
The creditor pays the collection company an agreed percentage of funds recovered.
In this scenario staff have not been enforcing the payment policies and patients are not familiar with the requirements or the reasoning behind these policies.
There is a need for specialists that are conversant with the policies to make the collection process efficient
Answer:
Forward vertical integration
Explanation:
Forward vertical integration is a strategy that allows companies to get more control of their business value chain and be more competitive by including the distribution of the products to be able to reach the customers directly. According to this, the answer is that the strategic move of HTC is known as forward vertical integration as HTC acquired one & co. to be able to offer a line of smartphones which was a move to distribute the cellphones they manufactured directly to the customers.
Answer:
The correct answer is option a.
Explanation:
Allocative efficiency means that all the available resources are used to produce that provides maximum utility for the society or which is most desired by society.
The points on the production possibility frontier show efficiency. The process of efficiently allocating resources involves determining the combination of outputs that will provide maximum satisfaction or utility to the society and is actually attainable.
