Answer:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost
Maximum transfer price is marginal cost only, when not operating at capacity.
Explanation:
Minimum transfer price when operating at capacity is the marginal cost + opportunity cost because when operating at capacity there are 2 elements involved - the cost at which it has made the units it will be transferring to another department within the organisation, and the profit it would have made if it had sold those units to others (opportunity cost)
Maximum transfer price is marginal cost only, when not operating at capacity because the department is constrained, it can only produce for the satisfaction of internal demand, not external customers; hence there is no case of opportunity costs.
Answer:
Answer is explained in the explanation section below.
Explanation:
Part A: In part a, we are required to show the effects on the financial statements using horizontal statements model.
For that, we need to tabulate the entries properly. So, it cannot be done be done here in the typing section. So, I m putting it into the attachments. Please refer to the attachment for the part a solution.
Part B:
Reason of the difference:
Cash revenue is $8650 but cash flow amount is $9600
Total operating expense incurred is $3350 but the amount paid only $2700
It will create $650 difference income statement and cash flow.
These activities are reasons for the differences between cash flow from the operating activity and net income.
If information about an entity's ability to continue as a going concern is not disclosed in the financial statements, an auditor of financial statements is likely to express an adverse opinion.
<h3>Define a qualified or adverse opinion.</h3>
A remark made in an auditor's report that is attached to a company's audited financial statements is known as a qualified opinion. According to an auditor's judgment, a company's financial information may have been incomplete or there may have been a significant problem with how generally accepted accounting standards (GAAP) were applied, but the problem was not widespread.
With one or more exceptions, the financials often reflect the company's success and position. The financial statements are inaccurate or do not adhere to widely accepted accounting rules, in our opinion (GAAP).
To know more about qualified opinion, visit:
brainly.com/question/14310924
#SPJ1
Answer:
B. $ 51 per unit
Explanation:
The computation of the unit product cost using variable costing is shown below:
= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit
= $7 units + $26 + $18
= $51 per unit
It recognizes only variable cost like - direct material, direct labor, and variable manufacturing cost. Hence, all other information is ignored
Answer:
Price elasticity of demand = Percentage in quantity demanded / Percentage change in price
We already have the percentage change in quantity demanded as -4.3%.
We need to find the percentage change in price using the midpoint method.
= (New price - Old price) ÷ ((New Price + Old price) / 2)
Old price = 1.50 - 0.25 = $1.25
Percentage change in price = (1.50 - 1.25) ÷ ((1.50 + 1.25) / 2)
= 18.18%
Price elasticity of demand = -4.3% / 18.18%
= -0.24
According to your estimate, the Transit Authority's revenue rises when the fare increases.<u> TRUE. </u>
The statement is true because the price elasticity of demand here is Inelastic and when this is the case, revenue rises when the price of the good or service increases.
The price elasticity of demand is inelastic when it is less than 1 which is the case here.
