In a business world, segregation of duties is important to have a sound internal control. The employee handing cash/check collection is prohibited from updating its customer's subsidiary ledger and recording of transactions in the books. This will eliminate fraud and misappropriation of funds.
Answer:
d. $704,000
Explanation:
The computation of the cash payment for merchandise is shown below:
= Opening balance of accounts payable + purchase made - closing balance of accounts payable
where,
Purchase = Cost of goods sold + closing balance of inventory - opening balance of inventory
= $720,000 + $188,000 - $200,000
= $708,000
The other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $80,000 + $708,000 - $84,000
= $704,000
Answer: Option (B) is correct.
Explanation:
Opportunity cost is the benefit that is foregone for an individual by choosing one alternative over other alternatives available to him.
If the opportunity cost is lower for an individual then this will benefit him whereas if the opportunity cost is higher then this will not benefit the individuals.
The opportunity cost of attending college for Brooke is the amount that she could earn as an actress i.e. $2 million per year.
The opportunity cost of attending college for Sandy is the amount that he could earn by serving hamburgers i.e. $10,000 a year.
Therefore, opportunity cost of attending college is greater for Brooke than for Sandy.
Answer:
Variable overhead efficiency variance= $600 unfavorable
Explanation:
Giving the following information:
Standard rate per direct labor-hour $2
Standard direct labor-hours for each unit produced 3
Units manufactured 1,000
Actual direct labor-hours worked during the month 3,300
<u>To calculate the variable overhead efficiency variance, we need to use the following formula:</u>
<u></u>
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1,000*3 - 3,300)*2
Variable overhead efficiency variance= $600 unfavorable
Answer
The answer and procedures of the exercise are attached in the 2 images below.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a 2 sheets with the formulas indications.
