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Vladimir [108]
3 years ago
9

Why do managers consider direct costs to be more accurate than indirect​ costs?

Business
1 answer:
astraxan [27]3 years ago
3 0
Direct costs are easily measurable and are tangible
You might be interested in
Steve Jack and Chelsy Stevens formed a partnership, dividing income as follows: Annual salary allowance to Stevens of $176,130.
denpristay [2]

Answer:

$45,440.00

Explanation:

Jack's interest on capital =5%*$90,000=$4,500.00

Stevens' interest on capital =5%*$111,000=$ 5,550.00  

Net income left to be shared in ratio 1:2 is the net income of $309,000 minus the total interest on capital of $10,050 i.e $4,500+$5,550 and salaries to Stevens

Net income left for sharing=$309,000-$10,050-$176,130=$ 122,820.00  

Jack's share of profit=1/3*$ 122,820.00   =$ 40,940.00    

Stevens' share of profits=2/3*$122,820.00  =$ 81,880.00  

Amount distributed to Jack=$4,500+$ 40,940=$45,440.00  

6 0
3 years ago
Fred and Lucy are married, ages 33 and 32, and together have AGI of $120,000 in 2019. They have four dependents and file a joint
algol13

Answer:

$3,800

Explanation:

According to the scenario, computation of the given data are as follow:-

Particular                                                              Amount ($)

Bills of doctor and dentist and hospital expenses 9,200

Less-received an insurance reimbursement 4,400

Add-prescribed medicines and drugs 3,000

Add-high deductible health insurance policy 5,000

Total expenses                                  12,800

Less- AGI’s 7.5%   ($120,000 × 7.5% ) $9,000

After Deduction medical expenses for 2019 $3,800

Contribution of $2,600 to a qualification health savings account is a deduction for AGI. So it is not calculated in deduction.  

According to the analysis, option (C) $3,800 is correct.

3 0
3 years ago
The following is a partial unadjusted Trial Balance.
PilotLPTM [1.2K]

Answer:

Supplies Expense         12500

Explanation:

<em>Bravo Unlimited</em>

<em>Adjustment Entry</em>

Date                          Particulars                     Debit           Credit

February 29          Supplies Expense         12500

                                      Supplies Account                       12500

( Opening bal+ purchases- Ending bal= Expense= 2000+ 12000- 1500= 12500

At the month end Supplies were used for $ 12500 and supplies on hand are $ 1500.

On 2nd Feb the supplies account totalled $ 14000 but $5000 supplies had been expensed  so the total amount of supplies used up is calculated by (Opening bal+ purchases- Ending bal= Expense) the formula given above.

5 0
3 years ago
Global Corp expects sales to grow by 9% next year. Assume that Global pays out 50% of its net income. Using the percent of sales
Nookie1986 [14]

Answer:

Global Corporation

Forecasted sales = Current Net Sales x (1 + growth rate)

= $186,200,000 x (1 + 0.09) = $186,200,000 x 1.09 = $202,958,000

Forecasted Net Income = $1,745,438.80 (202,958,000 x 0.86%)

Forecasted Dividend payout = $872,719.40 ($1,745,438.80 x 50%)

Forecasted Retained Earnings = $872,719.40 = $0.87 million

Therefore Forecasted equity = Current Equity + Forecasted Retained Earnings = $22.6 ($21.7 + $0.87)

Explanation:

a) Data and Percentage Calculations:

Income Statement ($million)                           Percentage

Net Sales                                         186.2          100%

Assets Cost Except Depreciation -175.2          94.09%

EBITDA                                              11.0           5.9%

Depreciation and Amortization        -1.1

EBIT                                                    9.9

Interest Income (expense)               -7.7

Pre tax Income                                  2.2

Taxes                                                -0.6

Net Income                                        1.6            0.86%

Dividends paid       50%                  -0.8

Retained Earnings  50%                  0.8

Balance Sheet ($million)

Cash                                                    22.9

Accounts Receivable                           18.1

Inventories                                           15.1

Total Current Assets                          56.1

Net Property, Plant, and Equipment 113.6

Total Assets                                      169.7

Liabilities and Equity

Accounts Payable                             34.4

Long term Debt                               113.6

Total Liabilities                                148.0

Total Stockholders' Equity               21.7

Total Liabilities and Equity            169.7

b) The percent of sales method enables the calculation of the relationship between sales and the line figures in the income statement.  Our interest for this question, is the Retained Earnings which we use to calculate the Stockholders' Equity forecasted balance.  The retained earnings percentage to sales = Retained Earnings as given divided by the net sales figure, and then multiplied by 100.

c) To forecast the sales, we use the growth rate of 9%.  This is equal to the current sales x 1.09.  Based on this sales, it becomes possible to forecast the Retained Earnings, having established the percentage of Retained Earnings to Sales, using the percent of sales method.  We apply the established percentage of Retained Earnings to the Sales figure, to get the Retained Earnings for the forecasted period.  This is then added to the Stockholders' Equity to get the forecasted stockholders' equity.

3 0
4 years ago
On July 4, 2018, Wyoming Mining Company purchased the mineral rights to a granite deposit for $1,600,000. It is estimated that t
kiruha [24]

Answer:

The amount of the Depletion Expense recognized for 2018 would be 240,000

Explanation:

In order to calculate the The amount of the Depletion Expense recognized for 2018, we have to calculate first the depletion expense per ton.

Hence, Depletion expense per ton = $1,600,000/400,000 = 4

Therefore, if the Depletion expense per ton is 4, and during 2018 60,000 tons of granits were sold then the Depletion expense to be recognized for 2018  will be=60,000*4

          = $240,000. Amount of the Depletion Expense recognized for 2018

5 0
3 years ago
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