Option B, Company B uses just in time inventories and produces made to order products as and when customer demand rises.
<u>Explanation:</u>
A cost leader is the business unit that induces the cost increase. Cost driver is any factor that causes an operation price transition.
Examples of cost drivers are: direct work hours of labour.
The analysis of the value chain can assist companies in different ways.
This can create changes within a company, the goods, services and links it offers to other companies and customers. The US Postal Service (USPS) describes that the aim of the assessment of the value chain is to "make value that exceeds the cost and produces gross margin."
Answer:
asset distribution preference
Explanation:
In such a situation the preference or privilege that would be best for you is known as asset distribution preference or liquidation preference. This is a clause that dictates that the payout in case of a corporate liquidation (such as when they are about to go bankrupt) must first go to the preferred stockholders in order for them to get their money back first. Therefore, since you are a preferred stockholder this would be the biggest privilege for you, allowing you to recover your money quickly and move on to something else.
Answer:
$170,000
Explanation:
Given that,
Travis Corporation begins the year with $50,000 of tire inventory that means inventories in the beginning of the year.
Purchases of tires during the year = $150,000
At the end of the year,
Purchase cost of remaining inventory = $30,000
Therefore,
Cost of goods sold:
= Beginning inventories + Purchases - Ending inventories
= $50,000 + $150,000 - $30,000
= $200,000 - $30,000
= $170,000
Answer:
Accounts receivable is $745,000
Explanation:
The company would report as net receivable, the total amount on accounts receivable minus total amount on the Allowance for uncollectible Accounts, which implies that the balance represent the amount of credit that will not be possible to collect again hence, the value represent balance on net accounts receivable.
Accounts receivable = Adjusted balance in accounts receivable - Allowance for doubtful accounts
= $800,000 - $55,000
= $745,000
Answer: 1. B. Petty Cash
2. D. Petty Cash
3. D. Debit petty cash and credit cash
Explanation:
1. When creating the Petty Cash fund, Cash is credited because money is being removed from it. It is then put into the Petty Cash account hence a debit.
2. When taking money from Petty Cash, it is an asset and so is credited to reflect the outflow.
3. Similar to the transaction in question 1. You are taking money from cash account to.put in Petty Cash so the right procedure is to debit Petty Cash and credit Cash.
