Answer:
e. When cost analysts are able to logically trace cost objects to costs, costing accuracy is improved.
Explanation:
Overhead costs are costs which can not be attributed to a particular item . So it is distributed among more than one item on some basis.
For example electricity cost is a common overhead in a company having two machines one producing pen and the other producing paper . The overhead electricity cost can be scientifically apportioned in the cost analysis of pen and paper on the basis of wattage capacity of machines used in the manufacture of pen and paper .
<h2>The given statement is true.</h2>
Explanation:
When we come across the term "Business", there is a sure "risk" involved on it. Without risk no business can run. But we have to be prepared to face the risk. Certain risk should be taken and certain risks should be avoided which would cause sure or severe damage to the organization.
Liability:
"Financial debts associated with the business operation are termed as liability."
So the business persons should be guided to to limit their liability but still needs to exposed to risk to achieve higher profits.
Answer:
$490
Explanation:
For computing the amount of shrinkage first we have to find out the ending inventory which is shown below:
= Beginning Inventory + Purchases - Inventory Sold
= $12,000 + $38,000 - $35,210
= $14,790
Now
Actual Ending Inventory = $14,300
So,
Shrinkage amount is = Ending Inventory as per Book Value – Actual Ending Inventory
= $14,790 - $14,300
= $490
Solution:
S.NO. Accounts title and Explanations Debit Credit
1 Cash $25,000
Accumulated Depreciation- Machine A $63,960
Gain on Dispose: $10,400
Machine A $78,560
Accumulated Depreciation - Machine B $16,500
Loss on Disposal $10,700
Machine B $27,200
Note: -When the net value of the commodity disposed of is smaller than the amount paid, there is a benefit. If the worth of the book is MOT, there is a cost.
