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nordsb [41]
3 years ago
6

Select the correct statement regarding relevant costs and revenues.

Business
1 answer:
givi [52]3 years ago
4 0

Answer:

d) Avoidable costs are also known as sunk costs.

Explanation:

The avoidable cost are those cost that can be ignored while making decision. The sunk costs are all those cost which already been incurred and it will not be effected by the change in decision. The sunk costs are already been expensed so, whatever decision you make it will not be changed.

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Rodriguez Company completed its income statement and comparative balance sheet for the current year and provided the following i
KATRIN_1 [288]

Answer:

Net Cash provided by Operating Activities = $13,000  

Explanation:

                      Rodriguez Company

               Statement of Cash flow(Partial)

Cash flows from operating activities       Amount

Net Loss                                                       $(6,920)

Add: Depreciation                                        $7,600

Add: Increase in Salaries Payable             $11,200

Add: Decrease in Accounts receivable      $6,400

Add: Amortization of Copy Rights               $220  

Less: Decrease in Other accrued               $(5,500)

liabilities

Net Cash provided by Operating              $13,000

Activities

Workings

Accounts receivable decrease = $15,600 − $9,200

Accounts receivable decrease= $6,400

Salaries payable increase = $13,600 − $2,400

Salaries payable increase= $11,200

Other accrued liabilities decrease = $1,300 − $6,800

Other accrued liabilities decrease = - $5,500

8 0
4 years ago
The following costs are included in a recent summary of data for a company: advertising expense, $85,000; depreciation expense -
vladimir1956 [14]

Answer:

Conversion costs= $488,000

Explanation:

Giving the following information:

depreciation expense - factory building, $133,000

direct labor, $250,000

factory utilities, $105,000

<u>The conversion costs are the sum of direct labor and manufacturing overhead.</u>

<u></u>

Manufacturing overhead= 133,000 + 105,000= 238,000

Direct labor= 250,000

Conversion costs= $488,000

7 0
3 years ago
Refer to the financial statement for the current year and prior two years. Analyze the year-to-year change in account balance fo
insens350 [35]

Answer:

c)Company is not performing well as we can observe that % change in sales and gross profit are increasing year by year. Return on equity is almost same year by year  

There is no much risk associated with company

Explanation:

1)Current Ratio  = current assets/current liability

2)return on equity= net profit/equity

3)Net Income(%)=net income/sales

4)Fixed Asset Turnover= Sales/Fixed asset

5)Debt ratio=debt/assets

8 0
3 years ago
A golf ball manufacturer gives us its data for the year: WIP Inventory, January 1 Units started Units completed and transferred
N76 [4]

Answer:

c. $10,106 if taken separately for Direct Material or Conversion Costs

Or None of these as total cost is $ 10,779+$ 10,081= $20860 for units transferred out

Explanation:

                                         

                                              Units         % of                       Eq. Units

                                                              Completion      D.M          Conversion

Units completed and

transferred out                 6,400 units         100%            6400           6400

WIP Inventory,                  3,100 units         90%,60%       2790           1860

December 31

<u>Total Units to account for                                                 9190             8260</u>

Direct materials            $15,478

Direct labor                    $7,400

Manufacturing Overhead  $5,611

Direct Material Cost per unit= $ 15478/9190= $ 1.684

Conversion Cost per unit=   $13011 / 8260= 1.575=$ 1.58

Direct Material Cost for Completed units = 6400 * $1.684= $ 10,779

Conversion Cost for Completed units = 6400 *1.575= $ 10,081

6 0
4 years ago
Your company manufactures small kitchen appliances. It is introducing a new product line of appliances in designer colors with d
Gelneren [198K]

Answer:

B. Progressive elaboration

Explanation:

Progressive Elaboration is done for a specific project and then such planning is thoroughly descriptive and detailed, and the management tends to develop the plan more and more with each day, make it more accurate for the project.

In the given instance, since there is a requirement to know all the features along with characteristics of the project properly, the technique to be followed is Progressive Elaboration as all the detailed work will be done, and will be revised accordingly.

Therefore, the correct option is:

B. Progressive elaboration

6 0
3 years ago
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