Answer:
2.4
Explanation:
Frontier corporation sells unit for $57
The unit variable cost is $29
Fixed cost is $164,000
Frontier sells 10,000 units
The first step is to calculate the contribution margin
= 57-29×10,000
= 28×10,000
= 280,000
Profit = 280,000-164,000
= 116,000
Degree of operating leverage can be calculated as follows
= 280,000/116,000
= 2.4
Answer:
False
Explanation:
The GAAP established that when the benefits of obtaining accounting information are lower than the costs of providing that information, the information should not be provided.
For example, sometimes there are very small differences in certain accounts that don't allow a balance sheet to be balanced. If the accounting error is very small, e.g. just a few hundred dollars, then it is not reasonable to have a whole audit team check all the financial statements again to determine what caused the error. An adjusting entry could be made to close the account balances.
Imagine you are an auditor that must check the physical inventory of a factory and some boxes containing supplies are misplaced. It might take you a whole day to count again all the supplies and materials, but is it worth it? If the supplies were really expensive, probably yes, but if they were cheap components, then probably no.
Answer:
E
Explanation:
all of those statements seem valid about being an effective decision maker
Answer:
Samantha will be willing to pay $ 2,600. The right answer is B.
Explanation:
Acording to the details, the probability of loss in case of Samantha's neighborhood is 25%.
Hence, the expected loss to her will be = 25/100 * 10000 = $2500
Samantha is willing to pay $100 over her expected loss, hence the amount that Samantha be willing to pay = ($2500 + $100 ) = $2600
Samantha will be willing to pay $2600
Answer:
$21.65
Explanation:
The computation of the standard cost is shown below:
= Material cost + labor cost + factory overhead cost
where,
Material cost = 3 ÷ 4 × $5 per yard
= $3.75
Labor cost = 2 hours × $5.75 = $11.5
And, the factory overhead cost is
= $3.20 × 2 hours
= $6.4
So, the standard cost is
= $3.75 + $11.5 + $6.4
= $21.65