Innovation is best rewarded with ___

Which one of the following budgeting methodologies would be most appropriate for a firm facing a significant level of uncertaint

cricket20 [7]

Answer:

D. Flexible budgeting is the correct answer.

Explanation:

Flexible budgeting is the budget plan that changes as per the company's requirement.

The advantages Flexible budgeting are:

It assists the management of the organization to decide about the business situation and production level.

It helps to know the amount of product to be required for the growth of the organization and to achieve the profit level.

8 0

3 years ago

Mitchell, Inc., is expected to maintain a constant 4.6 percent growth rate in its dividends, indefinitely. If the company has a

castortr0y [4]

The required return on the company's stock given the growth rate and the dividend yield is 10.4%.

<h3>What is the required return?</h3>

The required return is the return that investors demand for investing in a stock. The more risky a stock is, the higher the return demanded by investors.

Required return = dividend yield + growth rate

4.6% + 5.8% = 10.40%

8 0

2 years ago

Archer Construction Company began work on a $420,000 construction contract in 2017. During 2017, Archer incurred costs of $278,0

zheka24 [161]

Answer:

This a loss making contract of $33,000

Explanation:

Under I.A.S 11, The following steps are followed

Step 1 - Determine Expected Outcome of the Contract

Project Value - 420,000

Cost to date - (278,000)

Cost to complete - (175,000)

Outcome of Contract is Loss of $33,000

Step 2 - Determine the amounts to be recognized in Income Statement for Profit, Revenue and Cost .

Cost to date - 278,000

Contract Loss (33,000)

Revenue (Balancing Amount = $245,000

Journal Entries

Dr Cost expended to date - 278,000

Cr Revenue to date - 245,000

Cr Loss 33,000

b) Percentage Completion Method

Stage of Completion % = (Costs incurred to Date / Total Contract Costs )*100

278,000/453,000 = 61.36%

Revenue recognizable = 61.36% * Contract Value = 257,712

Cost to date =................................................................. = 278,000

Loss to Date (balancing figure)................................... = 20,288

Journal Entries

Dr Cost expended to date - 278,000

Cr Revenue to date - 257,712

Cr Loss 20,288

8 0

3 years ago

Computing and analyzing acid-test and current ratios

uysha [10]

Answer:

Current ratio- 2.03 2.33 1.73 and Acid-test ratio- 0.98 0.43 0.60

Explanation:

Attach is the table of given cases

Acid test ratio= $\frac{cash+Short\ term\ investments+ Current\ receivables }{Current\ liabilities}$

Now, solving for acid test ratio.

Case x

⇒ Acid test ratio= $\frac{1800+0+150}{2000}$

⇒ Acid test ratio= $\frac{1950}{2000}$

∴ Acid test ratio= $0.975 \approx 0.98$

Case y

⇒ Acid test ratio= $\frac{120+0+400}{1210}$

⇒ Acid test ratio= $\frac{520}{1210}$

∴ Acid test ratio= $0.429 \approx 0.43$

Case Z

⇒ Acid test ratio= $\frac{1000+400+400}{3000}$

⇒ Acid test ratio= $\frac{1800}{3000}$

∴ Acid test ratio= $0.60$

Next solving for current ratio.

We know, current ratio= $\frac{Current\ assets}{Current\ liability}$

Case x

⇒ current ratio= $\frac{4050}{2000}$

∴ current ratio= $2.025 \approx 2.03$

Case y

⇒ current ratio= $\frac{2820}{1210}$

∴ current ratio= $2.33$

Case Z

⇒ current ratio= $\frac{5200}{3000}$

∴ current ratio= $1.73$

Hence, Current ratio- 2.03 2.33 1.73 and Acid-test ratio- 0.98 0.43 0.60

7 0

3 years ago

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. Equivalent Units of Production Dire

ira [324]

Answer:

The total conversion costs transferred out of the Cranning Department = $196000

Explanation:

We have been given with the equivalent units of production with direct materials and conversion. In order to find the total conversion costs transferred out of the Cranning Department, we need the conversion units which are 50,000 units along with cost per equivalent unit for conversion which is $3.92 per EUP.

The total conversion costs transferred out of the Cranning Department = 50,000 * $3.92

The total conversion costs transferred out of the Cranning Department = $196000

7 0

3 years ago

Innovation is best rewarded with ____ incentives