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Brut [27]
3 years ago
6

The buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show your understanding of freigh

t terms by selecting all of the correct statements below. (Check all that apply.)
(a)-Terms FOB shipping point means the seller of the goods is responsible for freight charges.

(b)-Terms FOB destination means that the seller is responsible for shipping costs.

(c)-Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.

(d)-When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.

(e)-Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.

(f)-When the shipping costs are the responsibility of the seller, then the Merchandise Inventory account is debited.
Business
1 answer:
Bas_tet [7]3 years ago
7 0

Answer:

c,d and e

Explanation:

The correct statements given in the options are as stated below:

(c)-Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.

<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped.</em>

(d)-When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.

<em>This is true because Free on Board shipping means that the seller bears no liability whatsoever once the goods are shipped, hence the shipping costs are the buyers responsibility and will form part of the costs of the goods</em>

(e)-Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.

<em>This is true because Free on Board destination means that the seller bears all liability whatsoever till the goods are delivered, hence the revenue for the goods can only be recognized upon successful delivery</em>

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One of two alternatives will be selected to reduce flood damage in a rural community in central Arizona. The estimates associate
pochemuha

Answer:

Since the incremental B/C of 58.21 is less greater 1, it implies that the alternative that should be selected is Channel.

Explanation:

The alternative that should be selected can be determined using the Benefit-Cost (B/C) analysis as follows:

Incremental B/C = [Incremental Flood damage savings * ((1 + r)^-3 + (1 + r)^-9 + ((1 + r)^-18)] / [Incremental initial cost + (Incremental Annual Maintenance cost * ((1 - (1 / (1 + r))^n) / r))] ............... (1)

Where:

Incremental initial cost = Channel initial cost - Retention pond initial cost = $1,500,000 - $880,000 = $620,000

Incremental Annual Maintenance cost = Channel Annual Maintenance - Retention pond Annual Maintenance = $30,000 - $92,000 = -$62,000

Incremental flood damage savings = Channel Incremental flood damage savings - Retention pond incremental flood damage savings = $625,000 - $200,000 = $425,000

r = Discount rate = 8%, or 0.08

n = number of years = 20

Substituting all the relevant values into equation (1), we have:

Incremental B/C = [425000 * ((1+0.08)^-3 + (1+0.08)^-9 + (1+0.08)^-18)] / [$620,000 - ($62,000 * ((1 - (1 / (1 + 0.08))^20) / 0.08))]

Incremental B/C = $656,340.35 / $11,274.86

Incremental B/C = 58.2127235166936

Rounding to 2 decimal places, we have:

Incremental B/C = 58.21

Since the incremental B/C of 58.21 is less greater 1, it implies that the alternative that should be selected is Channel.

8 0
3 years ago
Nichols Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's IR
PolarNik [594]

Answer:

a. 9.43%

Explanation:

IRR is the rate of return that makes initial investment equal to present value of cash inflows

Initial investment = Annuity*[1 - 1 /(1 + r)^n] /r

1250 = 325 * [1 - 1 / (1 + r)^5] /r

Using trial and error method, i.e., after trying various values for R, lets try R as 9.43%

1250 = 325 * [1 - 1 / (1 + 0.0943)5] /0.0943

1250 = 325 * 3.846639

1250 = 1,250

Therefore, The project IRR is 9.43%

3 0
3 years ago
In July, a customer invested $10,000 in the ABC Mutual Fund. In December of the same year, ABC announced a long-term capital gai
mihalych1998 [28]

Answer:

Capital gains distribution is treated as long term

Capital gain from from redemption is treated as short term

Explanation: Capital gains may be explained as the profit made from the sale of a property or investment. Depending on the holding duration of the stock or bond, a capital gain may be classed as short term is held for below one year or long-term, of held for more than 1 year. However, According to the Internal Revenue service regulation, Capital gains are taxed as long term irrespective of the holding period in which the owner has possessed the fund.

Capital gains redemption however, follows the usual time-line and in this case would be taxed as short-term because the holding period is between July to May, which is a 10 months. Since it hasn't exceeded a year, then, it is classed as short term.

4 0
3 years ago
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermin
const2013 [10]

Question not complete

Direct Labour Cost is missing

Direct Labor Cost ----- $50,000.00 $270,000.00

Answer:

a.

Overhead Rate (Cutting Department) = $5.5 per machine hour = $5.5 per machine hour

Overhead Rate (Finishing Department) = $12.2 per labour hour

b. Total Manufacturing Cost = $644

c. Yes

Explanation:

a. Compute the predetermined overhead rate to be used in each department.

Given

Cutting Department

The Cutting Department bases its rate on machine-hours

Manufacturing Overhead Costs = $264,000

Machine Hours = 48,000

Finishing Department

The Finishing Department bases its rate on direct labor-hours.

Manufacturing Overhead Costs = $366,000

Direct Labour Cost = $270,000

Overhead Rate (Cutting Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Cutting Department) = $264,000/48,000

Overhead Rate (Cutting Department) = $5.5 per machine hour

Overhead Rate (Finishing Department) = Manufacturing Overhead Cost/Machine Hours

Overhead Rate (Finishing Department) = $366,000/$270,000

Overhead Rate (Finishing Department) = 1.36

Overhead Rate (Finishing Department) = 136% direct labour cost

b.

The Cutting Department bases its rate on machine-hours

Given

Machine hours = 80 machine hours

Overhead Rate = $5.5 per machine hours ------ Calculated

The Finishing Department bases its rate on direct labor-hours.

Given

Direct Labour Cost = 150

Overhead Rate = 136% labour cost ------ Calculated

Overhead Applied (Cutting Department) = 80 * 5.5

Overhead Applied = 440

Overhead Applied (Finishing Department) = 136% * 150

Overhead Applied = $204

Total Overhead Applied = $440 + $204

Total = $644

c. Yes

If they use a plantwide rate based on direct labor cost and if the jobs has longer machine hours and small amount of labor cost they will be charged less overhead cost.

6 0
3 years ago
As the owner of a party store, you have decided to lower the price for all balloons this month. What do you expect to happen?
Ulleksa [173]

Answer:

Quantity demanded for balloons will increase.

Explanation:

According to the law of demand, there is an inverse relationship between the price of the commodity and the quantity demanded for that commodity.

This means that if there is an increase in the price of a good then as a result the quantity demanded for that good decreases and on the other hand if there is a fall in the price of a good then as a result the quantity demanded for that good increases.

Therefore,

Fall in the price of balloons will lead to increase the quantity demanded for balloons.

3 0
3 years ago
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