Answer:
30%
Explanation:
The computation of return on investment is shown below:-
Return on Sales = Credit sales × Return on sales
= $24,000 × 5%
= $1,200
Investment in Accounts Receivable
= $24,000 × 1 ÷ 6
= $4,000
Return on Investment = Return on Sales ÷ Investment in Accounts Receivable × 100
= $1,200 ÷ $4,000 × 100
= 30%
Therefore for computing the return on investment we simply divide the investment in account receivable by return on sales.
Answer: $42,000
Explanation:
The total cost of Assembly is $168,000.
This is for the machine hours spent on both Antique and Modern clocks of:
= 3,600 + 1,200
= 4,800 hours
Modern clocks assembly costs would be:
= Modern clock machine hours / Total machine hours on assembly * Cost of assembly
= 1,200 / 4,800 * 168,000
= $42,000
Answer:
A. its operating income for the period will be higher than under absorption costing
Explanation:
As we know that
Under absorption costing, the fixed cost is divided on the number of units produced
And under the variable costing, the fixed cost is considered as a cost selling of goods so the absorption costing method will be lower than the value of finished goods.
As per the question, the started finished goods will help and sell the whole production and starting balance that means under absorption costing of goods which is to be sold is much than variable costing.
Answer:
LIABILITY
Explanation:
Liabilities are money owed by an organization or company as a results of obligations rising during the course of business operations, financial debts incurred, purchase of asset and so on. It also refers to the situation of being legally responsible for the actions of something or someone. If an organization decides not to take measures—due care—to make sure that every employee knows what is acceptable and what is not, and the consequences of illegal or unethical actions, it increases his liability. This is because the organization is liable and legally answerable to the actions of its employees.
