Answer with Explanation:
Following are the benefits of using departmental Income Statements:
- Gives an understanding of where the company lacks efficiency
- Helps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.
- The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.
- It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.
- It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.
The above benefits makes the department income statements important for the managerial use.
Answer:
It compare the difference among the actual performance and budgeted performance grounds on the volume of actual sales.
Explanation:
Flexible budget performance report is the report which is used for comparing or analyzing the actual results or outcomes for the period with the budgeted outcomes and it is generated through the flexible budget.
In short, it is that report which is the management report and compares the actual revenues as well as costs for the year with the budgeted revenues as well as costs grounded on the volume of actual sales.
Having a job and a car are benefits of the free market system..
Answer: The dirty clothes, water and detergent
Explanation: Inputs are the resources that are put into the system to attain a desired output, that may have a value to someone. The output is the final commodity that one get at the end of the system.
If we see washing machine as a system then the cleaned clothes are the output from that system. The resources that are used to get the clothes cleaned such as dirty clothes, water and detergent are the inputs.
Hence from the above we can conclude that the correct option is A.
Answer:
The answer is 245 days
Explanation:
The average collection period is the average number of days a business use to collect its accounts receivable. The number of days a business used to collect its business affects its liquidity as fewer days to collect these receivables are good for the business.
The formula is:
(Accounts receivables/Sales) x 365 days.
Accounts receivable - $7,183.
Sales ----------------------- $10,700.
Therefore, we have
($7,183/$10,700) x 365 days
245 days
