The determination of the mathematical relationship between activity level and cost is known as:_____

John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May 2013

jolli1 [7]

Answer:

Explanation:

The journal entries are shown below:

1. Purchase A/c Dr $5,400

To Accounts Payable $5,400

(Being merchandise is purchased on credit)

2. Freight-In A/c Dr $500

To Cash A/c $500

(Being freight charges are paid in cash)

3. Accounts Payable A/c Dr $800

To Purchase Returns A/c $800

(Being return merchandise is recorded)

4. Cash A/c Dr $5600

To Sales revenue A/c $5600

(Being merchandise is sold for cash)

5. No journal entry required

6 0

3 years ago

Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding

loris [4]

Answer:

Compute the amount of funds Ms. Bragg needs to borrow for June.

$162,850

Determine the amount of interest expense the restaurant will report on the June pro forma income statement.

$0, money is borrowed on June 30th there is no interest expense during June

What amount will the restaurant report as interest expense on the July pro forma income statement

$1,357

Explanation:

accounts receivable May 31 is $56,000.

budgeted cash sales for June $145,000

credit sales for June $591,000

65% of credit sales are collected in current month, 35% collected next month

suppliers are paid on the last day of the month

budgeted cash payments for June 30th = $710,000

cash balance $38,000

how much money does Ms. Bragg need to borrow on June 30?

total cash collections in June = $56,000 (from previous month) + $145,000 (cash sales) + $384,150 (65% of $591,000) = $585,150

payments - cash collected = $710,000 - $585,150 = $124,850

money borrowed on June 30 = $124,850 + $38,000 (desired cash balance) = $162,850

interest expense during July = $162,850 x 10% x 1/12 = $1,357

8 0

3 years ago

Finerly Corporation sells cosmetics through a network of independent distributors. Finerly shipped cosmetics to its distributors

Evgen [1.6K]

Answer:

The amount of revenue Finerly should recognize upon delivery to its distributors is $0.

Explanation:

From the question, the following two very important points can be observed:

1. Finerly expects the distributors to be able to sell the cosmetics, but is uncertain because it has little experience with selling cosmetics of this type.

2. Finerly is committed to accepting the cosmetics back from the distributors if the cosmetics are not sold.

Since there is an uncertainty that the the distributors will be able to sell the cosmetics and Finerly is committed to accepting them back from the distributors if they are not sold, these imply that the amount of sales revenue cannot be known or reasonably estimated until when the distributors actually sell the cosmetics.

Therefore, the amount of revenue Finerly should recognize upon delivery to its distributors is $0.

8 0

3 years ago

The manager of a clothing store in the mall has hired five new employees for the summer. All of them have just graduated from hi

Pepsi [2]

Answer:

Theory X

Explanation:

It is correct to say that this manager is using the management approach known as theory X, which is a philosophy that says employees work only for the benefits they receive, and that they avoid job responsibilities, so management must be inflexible and follow the hierarchy of functions, with the manager being responsible for a high degree of supervision of the work and the responsibility of the employee for any error.

Theory X may not be ideal for the current administration, where the focus of organizations are people and the formation of a culture focused on innovation and collaboration.

5 0

3 years ago

The use of peer ratings within work groups will most likely

Gnoma [55]

Answer:

The use of peer ratings within work groups will most likely cause healthy competition among peers as well as improving their performance. Peer rating helps to push every individual to their best and this helps the organization increase in all ramifications as well as maximize profit.

Explanation:

4 0

3 years ago

Read 2 more answers

The determination of the mathematical relationship between activity level and cost is known as:______