Answer:
Customer and Product Margin under Activity-based Costing and Traditional Costing
True Statements:
1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.
2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.
Explanation:
Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs. In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders. Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.
Product Margin is the profit margin generated per product. It is the markup on the cost of the product. It shows the difference in amount between the selling price and the manufacturing cost. Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.
Answer:
Option "D" is correct.
Explanation:
Option "D" is correct because When a person or member dissociates then the person loses the right to manage, losses the right to act, ceases from their duty of loyalty, ceases from the duty of care immediately if any event occurs after dissociation and the member has the right to find their interest. Therefore, from the given options it can be seen that the duty of care remains intact when only to that event that had occurred before the dissociation.
Answer:
Spotlighter, Inc.
Cash
Account Titles Debit Credit
Beginning balance $0
Notes Payable $4,740
Common stock $5,430
Equipment $1,000
Supplies $1,100
Ending balance $8,070
Notes Payable
Account Titles Debit Credit
Beginning balance $0
Cash $4,740
Equipment 1,600
Ending balance $6,340
Common stock
Account Titles Debit Credit
Beginning balance $0
Cash $5,430
Equipment
Account Titles Debit Credit
Beginning balance $0
Cash $1,000
Notes Payable $1,600
Ending balance $2,600
Supplies
Account Titles Debit Credit
Beginning balance $0
Cash $1,100
Accounts Payable $1,500
Ending balance $2,600
Accounts Payable
Account Titles Debit Credit
Beginning balance $0
Supplies $1,500
Ending Balance $1,500
Explanation:
1) Data and Transaction Analysis:
a. Cash $4,740 Notes Payable $4,740
b. Cash $5,430 Common stock $5,430
c. Equipment $2,600 Cash $1,000 Notes Payable $1,600
d. Supplies $1,100 Cash $1,100
e. Supplies $1,500 Accounts Payable $1,500
Answer:
True
Explanation:
The given statement is true as the process operations refer to the bulk production of the large quantities produced that contain similar products or identical products. Moreover, the goods are produced in a continuous flow. This is mostly done by the manufactures as they generally accepted the bulk or mass quantities of product
