Answer:
Option E
The annual ordering cost is more than $1150
Explanation:
The ordering costs include all the clerical, administrative and transportation costs associated with placing an order.
Annual ordering cos = ordering cost per order × number of order
No of order = Annual demand/order quantity
= 1908/67= 28.47 orders
Annual ordering cost = 28.47× 45= $1281.49
Annual ordering cost =$1281.49
The annual ordering cost is more than $1150
1. The Party ordered to pay a draft is the <u>drawee</u>
2. Instruction that directs a bank not to pay a check that has been lost or stolen is a <u>stop payment order</u>.
3. Party to whom commercial paper is made available is the <u>payee</u>.
4. Unconditional written order by one person that directs another person to pay money to a third person is a <u>bill of exchange.</u>
5. Type of draft by which a bank depositor orders the bank to pay money, usually to the order of a third party or to the bearer of the instrument is a <u>check</u>.
6. Person who executes or draws the draft and orders payment be made is the <u>drawer</u>.
7. The drawee's promise to pay the draft when due is called <u>acceptance</u>.
8. Unconditional written orders or promises to pay money are called <u>commercial paper.</u>
9. To refuse to pay when due is called <u>dishonor</u>.
10. The person who executes a promissory note is the <u>maker</u>.
Answer:
(i) and (iv)
Explanation:
The appreciable cost is the cost in which the assets can be depreciation over the useful life
And, the appreciable cost is come after deducting the salvage value from the acquisition cost
The formula to compute the depreciation expense using the straight-line method is shown below:
= (Original cost - salvage value) ÷ (useful life)
So it can be calculated after considering the first and four options
Answer: Percentage change OCF = 27.96%.
Explanation:
Given that,
Output level = 59,000 units
Degree of operating leverage = 3.3
Output rises to 64,000 units,
Degree of Leverage = 
Percentage change OCF = Degree of Leverage × Percentage change in Quantity
= 
= 27.96%
Answer:
The bad debt expense amounts to $ 10,680
Explanation:
The bad debt expenses for the year 2017 is computed as:
As the percent of sakes method is used for estimating the bad debt expense. Therefore, it is computed as:
Bad debt expense = Net Credit Sales × Estimate Percent
where
Net credit sales amounts to $178,000
Estimate percent is 6%
So, putting the values above:
Bad debt expense = $178,000 × 6%
Bad debt expense = $10,680
Therefore, the bad debt expense amounts to $10,680
