Answer:
The correct answer is letter "D": Overhead costs are high and there is considerable diversity among products.
Explanation:
Activity-Based Costing or ABC is a management accounting approach that assigns some indirect costs to goods incurring the bulk of certain costs. ABC is primarily used in the manufacturing sector to allow a proper estimate of the real cost of output per unit. ABC is mostly used when the firm offers a wide variety of products and their overhead costs are expensive.
Most businesses forego the use of ABC because the cost of introducing it exceeds the benefits of using it.
Answer:
the answer is C. People who earn a college degree are likely to earn more than those who have a high school education
Answer:
Residual income = $666,270
Explanation:
The residual income is the amount left after the opportunity cost of capital deducted from the net operating income
Operating income=Contribution margin -Fixed cost
Operating income= 1,050,000 - 325,500= $724,500
Residual income = Net income - (cost of capital × capital invested)
=$724,500 - (18% × 323,500)= 666270
Residual income = $666,270
Answer:
a. Journal entry
b. $18,150
c. $586,850
Explanation:
a. The adjusting journal entry is as follows
Bad debt expense A/c Dr
To Allowance for doubtful debts
(Being bad debt expense is recorded)\
The computation of the bad debt expense is shown below:
= Account receivable × estimated percentage given + debit balance of allowance for uncollectible accounts
= $605,000 × 3% + $4,700
= $18,150 + $4,700
= $22,850
b. The adjusted balance in Allowance for Doubtful Accounts is $18,150
c. The cash realizable value is
= $605,0000 - $18,150
= $586,850
Answer: the correct answer is c. Administrative actions by the channel manager are necessary to develop channel member cooperation.
Explanation:
Channel members are those people or individuals who are involved in the buying and selling of goods and services in the market.There are three types of channel members. They are: Agents. Wholesaler. Retailer.