Answer:
The correct answer is B: $5,600
Explanation:
Giving the following information:
Schager Company purchased a computer system for $40,000. The estimated useful life is 10 years, and the estimated residual value is $5,000.
Double-declining balance method= Netbook value* (2/useful life in years)
Year 1:
Double-declining balance method= (40000-5000)*(2/10)= $7000
Year 2:
Double-declining balance method= (35000-7000)*0.20= $5,600
Answer:
The following are the disadvantages and the advantages of bottom-up budgeting approach are as follows:
<u> Advantages of bottom-up budgeting approach:</u>
- The bottom-up budgeting approach helps in making the decisions very quickly as compared to all other budgeting methods.
- The main benefit of the bottom-up budgeting approach is that it helps in aligned the project goals in an organization by giving the specific direction.
- It helps in understand the resources, needs, expenses and the cost of each department in an organization.
<u> Disadvantages of bottom-up budgeting approach:</u>
- The bottom-up budgeting approach is complex as it sometimes cause misrepresent the budget figures in the given data.
- In this budgeting method there is also a lack of context and also expertise.
Answer and Explanation:
The computation of the asset turnover for all three companies is as follows:
<u>Particulars YRC UNP CH
</u>
Sales 4697500 19941000 13144413
Divided by
Average
total assets 1824700 55159000 3436058
Assets turnover 2.6 0.4 3.8
Answer:
4,444.44 units
Explanation:
For the computation of Number of units to be sold to earn target profit first we need to follow some steps which are shown below:-
Selling price per unit = Sales ÷ Number of units sold
= $300,000 ÷ 5,000
= $60
Variable cost per unit = Total variable cost ÷ Number of units sold
= $180,000 ÷ 5,000
= $36
Increase in selling price = $60 × 5%
= $3
New selling price per unit = $60 + $3
= $63
New contribution margin per unit = New selling price per unit - Variable cost per unit
= $63 - $36
= $27
Number of units to be sold to earn target profit = (Fixed cost + Target profit) ÷ Contribution margin per unit
= ($90,000 + $30,000) ÷ $27
= $120,000 ÷ $27
= 4,444.44 units
Answer:
Option D is correct one.
<u>Positive statement because a good model can be tested with evidence.</u>
Explanation:
Positive statement:
It is essentially goal and reality based. Also, positive explanations are have to demonstrate or invalidated however can't right them. Positive financial aspects manages the realities and circumstances and logical results connections which incorporates portrayals, hypothesis advancement and hypothesis testing.
Normative Statement:
Normative explanations are abstract and the substance are esteem based. The announcements are fundamentally assessment based so they can't be tried. Regulating explanation incorporates the worth decisions with respect to that whether the economy must resemble or the suggestion of specific approach to get an ideal objective.
Economic Model:
Financial displaying alludes to an objective, outline layout to help systematise the investigator's view. A monetary model can't delineate reality precisely in light of the fact that it would be too hard to even think about understanding. A model is an improvement that permits the financial specialist to perceive what is genuinely significant. Since great financial model ought to anticipate circumstances and logical results relationship and it hast to be tried with checked truth, great monetary model more probable tended to positive proclamation.
