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2 years ago

Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to

1 answer:

4 0

Product warranties, effects of environmental problems, and lawsuits are examples of transactions or events that give rise to Contingency.

<h3>What is Contingency?</h3>

A contingency is the potential possibility of a bad event, such as a pandemic, economic downturn, natural disaster, fraud, or terrorist attack. The coronavirus outbreak that struck businesses in 2020 made many employees reliant on remote work.

Companies had to adopt a remote work strategy as a result. Working remotely wasn't an option for some organizations, though, and as a result, increased security measures for both employees and clients were put in place to stop the virus from spreading.

Although contingencies can be planned for, it is often impossible to predict the kind and breadth of such unfavorable events in advance. Businesses and investors conduct analyses and put defensive measures into place to prepare for potential possibilities.

Know more about Contingency with the help of the given link:

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(Cash management) As CFO of Portobello Scuba Diving Inc. you are asked to look into the possibility of adopting a lockbox syst

zheka24 [161]

Answer:

Check the answers below

Explanation:

The per instrument cost of the bank is $0.25. Assuming uniform cheque value, the 24 million remittances across 10000 cheque will mean per cheque value of 2400. If this amount can be invested at 8% p.a., then daily investment income will be approx = 2400 * 8% /365 = $ 0.526

Now for the company to jus about cover the cost of the cheque processing, the time should reduce by (assuming fractional time in days is possible) 0.25/0.526 = 0.48 days

Now if the interest that can be earned reduces to 4%, the average daily interest will also reduce to $0.263. At this level, the time required to cover the cost should reduce by 0.95 days

The difference is simply because the opportunity cost in terms of alternate usage of funds has decreased for the company.

8 0

3 years ago

Bodin Company manufactures finger splints for kids who get tendonitis from playing video games. The firm had the following inven

Ilia_Sergeevich [38]

Answer:

Raw Material $191,000

Direct labor $300,000

Actual manufacturing overhead $170,000

Actual selling and administrative expenses $115,000

The company applies manufacturing overhead at the rate of 60 percent of direct-labor cost.

Prime Cost = Direct Material + Direct Labor

Prime Cost = $191,000 + $300,000 = 491,000

Cost of goods manufactured $

Direct material $191,000

Add: Direct Labor $300,000

Add: Manufacturing overhead $170,000

Manufacturing cost $661,000

Manufacturing cost $661,000

Add: Work in process inventory at January 1 $235,000

Less: Work in process inventory at January 31 $251,000

Cost of Goods Manufactured $645,000

Cost of Goods Manufactured $645,000

Add: Finished Good inventory at January 1 $125,000

Less: Finished Good inventory at January 31 $117,000

Cost of Goods Sold $653,000

Manufacturing overhead Account Balance

Actual overhead = $175,000

Manufacturing overhead = $180,000 (300,000 x 60% )

Over applied manufacturing overhead = $180,000 - $175,000

Over applied manufacturing overhead = $5,000

* Data was missing for the calculations, complete question is attached with this answer, Please find that.

3 0

3 years ago

A cosmetics company is conducting a second-year review of one of its newest products. The marketing department expects that the

-BARSIC- [3]

Answer:

sensitivity analysis

Explanation:

According to my research on different business strategies, I can say that based on the information provided within the question the senior management is undertaking sensitivity analysis. This is a study of what kind of relationship exists between the inputs and outputs of a system and how much uncertainty exists between them. This is what the senior management is undertaking when determining different factors which might lead to different profit projections.

I hope this answered your question. If you have any more questions feel free to ask away at Brainly.

6 0

3 years ago

Financial statements are optional accounting reports issued periodically by a firm which present information on the past perform

goldfiish [28.3K]

Answer:

False

Explanation:

Financial statements are written records that convey the business activities and the financial performance of a company. Financial statements are often audited by government agencies, accountants, firms, etc. to ensure accuracy and for tax, financing, or investing purposes.

These documents play a pivotal role in a financial institution, thus, not optional.

Cheers

7 0

3 years ago

Read 2 more answers

Road Gripper Tire Co. manufactures automobile tires. Standard costs and actual costs for direct materials, direct labor, and fac

Nezavi [6.7K]

Answer:

Answer is explained in the explanation section below.

Explanation:

Solution:

In part a, we need to find the following 3 requirements:

1. Direct Materials Price Variance

2. Direct Materials Quantity Variance

3. Total Direct Materials Cost Variance

Direct Materials Price Variance:

It can be calculated by using the following formula:

DMPV = AQ multiplied by (AP minus the SP)

Where,

DMPV = Direct Materials Price Variance

AQ = Actual Quantity

AP = Actual Price

SP = Standard Price

We do have all the data, so just plug in the values into the above equation to get the DMPV.

AQ = 101,000

AP = 6.50 USD

SP = 6.40 USD

So,

DMPV = 101,000 ( 6.50 - 6.40)

DMPV = 10,100 USD

Direct Materials Quantity Variance:

DMQV = SP ( AQ - SQ )

Where,

DMQV = Direct Materials Quantity Variance = ?

SP = Standard Price = 6.40 USD

AQ = Actual Quantity = 101,000

SQ = Standard Quantity = 100,000

Plugging in the values:

DMQV = 6.40 ( 101,000 - 100,000)

DMQV = 6400 USD

Total Direct Materials Cost Variance:

DMCV = SMC - AMC

Where,

DMCV = Direct Materials Cost Variance = ?

SMC = Standard Market Cost = 6.40 USD x 100,000

AMC = Actual market Cost = 6.50 USD x 101,000

DMCV = (6.40 USD x 100,000) - (6.50 USD x 101,000)

DMCV = 640,000 - 656,500

DMCV = 16,500 USD

For part b, we need following particulars:

1. Direct Labor Rate Variance (DLRV)

2. Direct Labor Time Variance (DLTV)

3. Direct Labor Cost Variance (DLCV)

Direct Labor Rate Variance (DLRV) :

DLRV = (ADLR - SDLR) x ADLH

Where,

ADLR = Actual Direct Labor Rate = 15.40 USD

SDLR = Standard Direct Labor Rate = 15.75 USD

ADLH = Actual Direct Labor Hour = 2000

So,

DLRV = (ADLR - SDLR) x ADLH

DLRV = (15.40 USD - 15.75 USD ) x 2000

DLRV = 700 USD

Direct Labor Time Variance (DLTV):

DLTV = ( ADLH - SDLH ) x SDLR

SDLH = Standard Direct Labor Hour = 2080

DLTV = ( 2000 - 2080 ) x 15.75 USD

DLTV = 1260 USD

Direct Labor Cost Variance (DLCV)

DLCV = SDLC - ADLC

SDLC = Standard Direct Labor Cost

ADLC = Actual Direct Labor Cost

DLCV = (1540 x 2000) - (15.75 x 2080)

DLCV = 1960 USD

For Part c, we need following:

1. variable factory overhead controllable variance (VFOCV)

2. fixed factory overhead volume variance (FFOVV)

3. Total factory overhead cost variance (TFOCV)

variable factory overhead controllable variance (VFOCV):

VFOCV = AFO - B

Where,

AFO = Actual Factory Overhead = 8200

B = Budgeted Allowance Based on Standard Hours Allowed = 4160x0.5x4

B = 8320 USD

VFOCV = 8200 - 8320

VFOCV = 120 USD

fixed factory overhead volume variance (FFOVV) :

FFOVV = (S - BH ) x SOR

Where,

S = Standard Hours for actual output = 4160 x 0.5

BH = Budgeted Hours = 2080

SOR = Standard Overhead Rate = 6 USD

FFOVV = (4160 x 0.5 - 2080) x 6

FFOVV = 0 USD

Total factory overhead cost variance (TFOCV):

TFOCV = AFO - SO

Where,

AFO = Actual Factory Overhead = 20,200

SO = Standard Overhead = 2080 x 10

TFOCV = 20,200 - ( 2080 x 10 )

TFOCV = 600 USD

7 0

3 years ago