Answer:
d. $704,000
Explanation:
The computation of the cash payment for merchandise is shown below:
= Opening balance of accounts payable + purchase made - closing balance of accounts payable
where,
Purchase = Cost of goods sold + closing balance of inventory - opening balance of inventory
= $720,000 + $188,000 - $200,000
= $708,000
The other items values would remain the same
Now put these values to the above formula
So, the value would equal to
= $80,000 + $708,000 - $84,000
= $704,000
Answer:
b. the budget is adjusted to the actual activity for the period.
Explanation:
A flexible budget performance report is a comparison between actual costs and revenues, and the budgeted income and expenses at the end of a period, based on actual performance. The report shows the difference between the actual results and the estimated numbers. Management uses the report to determine if the company's results were in line with management expectations.
The performance report is prepared at the end of a financial period. It helps the management analyse any major variances between the actual performance at the estimated numbers at the beginning of a period. The report helps the management identify the companies strong areas, and the sections that need improvements.
Answer:
The electric guitar division should be: Kept
Explanation:
Currently it has a profit of $280 individually and After elimination it will incur a loss of $4280 which is the loss of profit of 280 and current loss of $4,000. This division should be kept because it is making enough profit to compensate all the avoidable and unavoidable expenses with making addition profit of $280, Otherwise there will be a net loss of $4,280 due to some unavoidable expenses.
Working is made in an attached MS Excel file, please find it.
Answer: A firm will shut down in the short run if the total revenue that it would get from producing and selling its output is less than its C. variable costs.
Explanation: A variable cost is a cost that will vary depending on the level of output that is needed. If more units of an item are needed, the variable costs will likely rise whereas if the product numbers go down, they will too. A variable cost changes and a fixed cost stays the same regardless of the production amount.
