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4 years ago

The following statements accurately describe the difference between saving and investing EXCEPT…

Business

1 answer:

vagabundo [1.1K]4 years ago

8 0

Answer:

Saving can only be done in person. Investing can be done both in-person and online.

Explanation:

Saving refers to keeping some funds aside for use during emergencies. Individuals and institutions also save as a way of accumulating funds for a specific intention. Banks and other deposit-taking institutions offer saving services to pool funds and lend them for investment and consumption.

Saving will attract lower interest rates, sometimes below the inflation rate. Banks offer lower rates on saving and charges a higher interest rate to borrowers to make profits. Because saving offer lower returns, they are suitable for short-term periods. Savings are relatively safer than investment.

Investments offer higher returns but have a higher risk. Due to their price volatility, investments are suited for the long-term to safeguard against price fluctuations.

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Lillich, Inc., manufactures and sells two products: Product U6 and Product R5. Data concerning the expected production of each p

Goryan [66]

Answer:

Lillich, Inc.

c. The unit product cost of Product U6 under traditional costing is greater than its unit product cost under activity-based costing by $5.63.

Explanation:

a) Data and Calculations:

Direct labor rate = $28.00 per DLH

Product U6 Product R5 Total

Expected production 690 1,060

Direct materials cost/unit $250.40 $167.80

Direct Labor Hours/unit 8.9 5.9

Total direct labor hours 6,141 6,254 12,395

Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)

Total overhead $636,360 $658,752 $1,295,112

Total production cost $981,084 $1,011,732

Expected production 690 1,060

Cost per unit $1,421.86 $954.46

Traditional costing:

Direct labor costs $171,948 ($28*6,141) $175,112 ($28*6,254)

Total direct materials cost $172,776 ($250.4*690) $177,868 ($167.8*1,060)

Total overhead $641,612 $653,418 $1,295,112

Total production cost $986,336 $1,006,398

Expected production 690 1,060

Cost per unit $1,429.47 $949.43

Allocation of overhead based on direct labor hours

= $ 1,295,086/12,395

= $104.48 per DLH

Product U6 = $641,612 ($104.48 * 6,141)

Product R5 = $653,418 ($104.48 * 6,254)

Estimated Expected Activity

Activity Cost Pools Activity Overhead Product Product Total

Measures Costs U6 R5

Labor-related DLHs $ 201,638 7,125 7,280 14,405

Production orders Orders 72,840 1,350 1,250 2,600

Order size MHs 1,020,608 6,500 6,800 13,300

Total $ 1,295,086

Overhead rates:

Labor-related = $201,638/14,405 = $14.00 per DLH

Production orders = $72,840/2,600 = $28.00 per order

Order size = $1,020,608/13,300 = $76.74 per machine hour

Overhead allocation:

Product U6 Product R5 Total

Labor-related $99,750 (7,125*$14) $101,920 (7,280*$14) $201,670

Production orders 37,800 (1,350*$28) 35,000 (1,250*$28) 72,800

Order size 498,810 (6,500*$76.74) 521,832 (6,800*$76.74) 1,020,642

Total overhead $636,360 $658,752 $1,295,112

5 0

3 years ago

Seasons Construction is constructing an office building under contract for Cannon Company and uses the percentage-of-completion

lana66690 [7]

Answer:

SEASONS CONSTRUCTION

At the end of Dexc 31 2023

The revenue to be recognized will be = 25% * $18,600,000 = $4.650,000

The cost to be recognized = 25% * $18,750,000 = $4,687,500

Since percentage of completion method is being used, the revenue and cost to be recognized for the ywear 2023 will be based on the proportion of work completed in that year.

Explanation:

5 0

4 years ago

A(n) __________ is prepared as part of the human resource planning process, and indicates the characteristics and qualifications

sasho [114]

Answer: Human resource inventory.

Explanation:

The human resource inventory is document where the human resource department of an organization takes record of some key details of all employees of the organization.

The information found in the human resource inventory includes data on each employee, such as the employee's: age, gender, qualifications, skills, department, job role and salary information.

An organization can make reference to the information in the human resource inventory, to make decisions on their labor force and ways to improve itself.

7 0

4 years ago

Match each situation below to two applicable reasons that require an adjustment to be made.

____ [38]

1) A. C.

2) A. E.

3) B. C.

4) B. F.

5) A. E.

6) A. C.

7) B. F.

8) B. C.

Explanation:

1) Delta Airlines provided flights this month for customers who paid cash last month for tickets. Revenue has been earned. Liability has been incurred.

2) GSD+M completed work on an advertising campaign that will be collected next month. Revenue has been earned. Asset has been acquired.

3) Abercrombie received a telephone bill for services this month, which must be paid next month. Expense has been incurred. Liability has been incurred.

4) The Tiger Woods Foundation used up some of the benefits of its 35,000-square-foot building. Expense has been incurred. Asset has been used up.

5) IBM completed a consulting project for the CDC to simulate the spread of contagious viruses and will be paid next month. Revenue has been earned. Asset has been acquired.

6) This month Apple, Inc. redeemed iTunes gift cards that had been issued last month. Revenue has been earned. Liability has been incurred.

7) Schutt Sports used up some of the benefits of its football helmet manufacturing equipment. Expense has been incurred. Asset has been used up.

8) Procter & Gamble received a bill for this months advertising services, which it will pay next month. Expense has been incurred. Liability has been incurred.

4 0

3 years ago

In the second week of December, Security First agreed to provide 30 days of consulting services to a local fitness club for a fi

Ronch [10]

Answer:

Security First

Debit Accounts Receivable $2,760

Credit Consulting Revenue $2,760

To record the accrued revenue for consulting services.

Explanation:

a) Data and Calculations:

Value of a consulting services contract = $4,140

Period of services = December 12 to January 10

Payment date = January 10

The fee will be divided by 30 days with 20 days' apportioned to the current year while 10 days' will be apportioned to the following year, thus:

Current year's revenue = $4,140 * 20/30 = $2,760

Next year's revenue = $4,140 * 10/30 = $1,380

Therefore, the unadjusted balance in Consulting Revenue will increase by $2,760 with the corresponding debit entry in the accounts receivable account.

4 0

3 years ago