Answer:
The decision is incorrect. It is cheaper to make in house.
Explanation:
Giving the following information:
Make in house:
Direct materials and direct labor 10
Variable factory overhead 6
Fixed factory overhead 4
The company recently decided to buy 10,000 fishing reels from another manufacturer for $18
We need to calculate the unitary variable cost of production. Fixed costs are unavoidable, therefore they shouldn't be taken into account.
Variable cost= direct material + direct labor + variable overhead
Variable cost= 10 + 6= $16
The decision is incorrect. It is cheaper to make in house.
Im gonna guess tax deduction
<em>MISSING INFORMATION:</em>
concept // Year 2 // Year 1
Sales 7,620 7,450
Account Receivables 655 588
Answer:
Yes, there is. The days to collect increase by 4.16 to 29.77 from 26.61
Which is a bad sing as the company delays more to collect form their customers
Explanation:
Account Receivable turnover:
Average receivable:
(458 + 588 ) / 2 = 523
7,450 / 523 = 14.25
Days to collect: 365 / 14.25 = 25,61
Second Year:
Average receivable: (655 + 588) / 2 = 621.5
Turnover: 7,620 / 621.5 = 12.26
Days to collect: 365 / 12.26 = 29,77
29.77 - 25.61 = 4.16
Answer: The correct answer is "c. To report a loss when there is a decrease in the future utility below the original cost."
Explanation: When talking about current assets, or more precisely, Merchandise inventory, it is common that sometimes the sale value is less than the original cost of the assets, therefore a negative holding result is produced, that is, a loss.
The Plain Meaning Rule.
The plain meaning rule states that when the language is unambiguous and clear, you must use the actual language of the contract and not any outside evidence when determining how the dispute is resolved.
