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3 years ago

The conservatism constraint prescribes that:

Business

1 answer:

slava [35]3 years ago

6 0

Option E

The conservatism constraint prescribes that: When multiple estimates of amounts to be received or paid in the future are equally likely, then the least optimistic amount should be used.

<h3>Explanation:</h3>

Conservatism constraint designates the aid of the less optimistic amount when more extra than unity assessment of the amount to be collected or repaid endures and these assessments are thereby uniformly likely.

The conservatism constraint suggests that, all annexes equal, we require to choose the postulate that is more moderate for assets and more leading for liabilities, these hypotheses forming the company resemble worse or most traditional. Conservatism constraint restricts the opportunity of economic statements being proffered that are emphasized, an overstatement that investors could perform on.

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think of some examples of products for which people are willing to pay premium prices. Name one such product and explain why you

Fiesta28 [93]

IPhone. People pay a ton for iPhones. I think people pay so much because it’s a computer in ur pocket.

4 0

2 years ago

In terms of SUPPLY, what factors have contributed to the fall in oil prices?

mylen [45]

Current supply and output. Until recent years, Organization of Petroleum Exporting Countries (OPEC) often set supply through a quota system.

3 0

3 years ago

The rule of supply and demand applies to all careers. O True O False

Sergio039 [100]

Answer:

True

Explanation:) hope this helps

Supply and demand affect career wages. A job that is in demand is a job with a good outlook. Everyone should try to be an NFL quarterback because they earn so much money.

6 0

1 year ago

Smooth Move Company manufactures professional paperweights and has been approached by a new customer with an offer to purchase 1

djyliett [7]

Answer:

a. Smooth Move should REJECT the order

b) Net loss from accepting the order $ (7,500)

Explanation:

Relevant costs are future incremental cash costs that arise as a direct consequence of a decision.

The relevant cash flows of this decision include the following:

Variable cost of production -(3.10 +2.25 +1.15) + $0.20= $6.7 per unit
Cost of additional machine - $12,000.
Sales revenue from the special offer

Sales revenue from special offer (15,000×$7.00) = 105,000

Variable cost (15,000× $6.7) (100,500)

Cost of additional machine - (12,000)

Net loss from accepting the order  (7,500)

8 0

2 years ago

Indicate the missing amount for each letter (a) through (i). Case A Case B Case C Direct materials used $ (a) $72,720 $131,700 D

Mars2501 [29]

Answer:

Case A Case B Case C

Direct materials used $ 91,200 $72,720 $131,700

Direct labor 59,280 90,560 18,500

Manufacturing overhead 49,120 82,680 105,500

Total manufacturing costs 199,600 245,960 255,700

Work in process 1/1/20 26,710 17,110 84,200

Total cost of work in process 226,310 263,070 339,900

Work in process 12/31/20 37,910 13,240 71,550

Cost of goods manufactured 188,400 249,830 268,350

Explanation:

Given:

Case A Case B Case C

Direct materials used $ (a) $72,720 $131,700

Direct labor 59,280 90,560 (g)

Manufacturing overhead 49,120 82,680 105,500

Total manufacturing costs 199,600 (d) 255,700

Work in process 1/1/20 (b) 17,110 (h)

Total cost of work in process 226,310 (e) 339,900

Work in process 12/31/20 (c) 13,240 71,550

Cost of goods manufactured 188,400 (f) (i)

Therefore, we have:

Case A

a. Direct materials used = Total manufacturing costs - Direct labor - Manufacturing overhead = 199,600 - 59,280 - 49,120 = 91,200

b. Work in process 1/1/20 = Total cost of work in process - Total manufacturing costs = 226,310 - 199,600 = 26,710

c. Work in process 12/31/20 = Total cost of work in process - Cost of goods manufactured = 226,310 - 188,400 = 37,910

Case B

d. Total manufacturing costs = Direct materials used + Direct labor + Manufacturing overhead = 72,720 + 90,560 + 82,680 = 245,960

e. Total cost of work in process = Total manufacturing costs + Work in process 1/1/20 = 245,960 + 17,110 = 263,070

f. Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20 = 263,070 - 13,240 = 249,830

Case C

g. Direct labor = Total manufacturing costs - Direct materials used - Manufacturing overhead = 255,700 - 131,700 - 105,500 = 18,500

h. Work in process 1/1/20 = Total cost of work in process - Total manufacturing costs = 339,900 - 255,700 = 84,200

i. Cost of goods manufactured = Total cost of work in process - Work in process 12/31/20 = 339,900 - 71,550 = 268,350

4 0

3 years ago