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3 years ago

What do of the terms “frequent, likely, occasional, seldom, and unlikely” describe in the risk assessment matrix?

1 answer:

4 0

Frequent, likely, occasional, seldom, and unlikely are the five categories of probability in the Risk Assessment Matrix which means the likeliness that an adverse or critical event will occur. The purpose of Risk Assessment Matrix is to estimate the degree of severity and probability for each hazard.

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Mellon Corporation The data presented below is Mellon Corporation for the year ended December 31, 2015: Sales (100% on credit) $

kaheart [24]

Answer:

The bad debts expense for 2015 would be $ 28,000

Explanation:

The balance of the allowance for doubtful account should be equal to the amount estimated to be uncollectible based on the ageing analysis

Estimated uncollectible account $ 31,000

Allowance for doubtful accounts prior to adjustment $ 3,000

Bad debts expense for the year to be recorded $ 28,000

The accounting entry to record this is as follows:

Bad debts expense Debit $ 28,000

Allowance for uncollectible accounts Credit $ 28,000

4 0

3 years ago

Explain whether each of the following will cause a shift of the AD curve or a movement along the AD curve. a. Firms become more

Aleks04 [339]

Answer:

a. AD curve will shift to the right

b. AD curve will shift to the left

c. Movement along the AD curve.

Explanation:

a. When firms become more optimistic and increase their spending on machineries,this brings about changes in investment and it will cause a shift to the right in the aggregate demand curve.

b. When The federal government increases taxes in an attempt to reduce a budget deficit. This will cause a change in consumption as people will have less money to spend since disposable income has been reduced, and it will cause the aggregate demand curve to shift inwards to the left.

c. A 4 percent in US inflation will bring about a change in price level and there will be a movement along the aggregate demand curve.

7 0

3 years ago

On January 1, 2018, Lumos Company purchased a machine for $70,200. Lumos uses straight-line depreciation and estimates an eight-

jeka94

Answer:

Gain= $4,200

Explanation:

Giving the following information:

Purchase price (2018)= $70,200

Salvage value= $5,400

Useful life= 8 years

Selling price= $42,000

First, we need to calculate the depreciation expense and accumulated depreciation:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (70,200 - 5,400) / 8

Annual depreciation= $8,100

Accumulated depreciation (ending 2021)= 8,100*4= $32,400

If the selling price is higher than the book value, the company gain from the sale. Now, we need to determine the book value.

Book value= purchase price - accumulated depreciation

Book value= 70,200 - 32,400= $37,800

Gain/loss= selling price - book value

Gain/loss= 42,000 - 37,800

Gain= $4,200

6 0

3 years ago

Alpha Communications, Inc., which produces telecommunications equipment in the United States, has a very strong local market for

CaHeK987 [17]

Answer:

1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board with US Share as $0 and German Share as $32.80.

2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board with US Share as $24 and German Share as $15.20. The transfer price as US market price is more effective for the Alpha Communications.

3:a- If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.

3:b- If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board with US Share as $24 and German Share as $36.

Explanation:

1-If the transfer price is set equal to the U.S. variable manufacturing cost, Alpha Communications will have a profit of $32.80 per circuit board. The calculations are as follows:

US Operation:

Sales Revenue(Price set to variable manufacturing cost): $130

Variable Manufacturing Cost: : ($130)

_________________________________________________

Contribution Margin : $ 0

German Operation:

Selling Price: $360

Transfer Price: ($130)

Additional Cost: ($115)

Shippng Cost: ($20)

Import Duty (10% of Transfer Price): 10% x 130=0.1x130= ($13)

_________________________________________________

Income Before Tax: $82

Income Tax (60% of Income Before Tax):60%x82 ($49.20)

___________________________________________________

Income After Tax $32.80

2-If the transfer price is set equal to the U.S. market price, Alpha Communications will have a profit of $39.20 per circuit board. The transfer price as US market price is more effective for the Alpha Communications. The calculations are as follows:

US Operation:

Sales Revenue(Price set to variable manufacturing cost): $170

Variable Manufacturing Cost: : ($130)

_________________________________________________

Income Before Tax : $ 40

Income Tax (40% of Income Before Tax):40%x40 :($16)

_________________________________________________

Income After Tax: : $24

German Operation:

Selling Price: $360

Transfer Fee: ($170)

Additional Cost: ($115)

Shippng Cost: ($20)

Import Duty (10% of Transfer Price): 10% x 170=0.1x170= ($17)

_________________________________________________

Income Before Tax: $38

Income Tax (60% of Income Before Tax):60%x38 ($22.80)

___________________________________________________

Income After Tax $15.20

Total Income By Alpha Communication: $24+$15.20=$39.20

3-a: If the German division can obtain the boards in Germany for 155, it is better for the German division because due to lack of additional shipping fee and import duty, this price is more feasible for the German division.

At the lower tranfer price of 130, the total impact of transfer is given by

Transfer Price: $130

Shippng Cost: $20

Import Duty (10% of Transfer Price): 10% x 130=0.1x130= $13

___________________________________________________

Total Impact $163

It is more than the local available price, Thus the company should purchase their circuit board locally.

3-b If the company decide to sell the US circuit boards locally and allow German division to obtain the circuit boards in Germany, then Alpha Communication will have a profit of $60 per circuit board.

US Operation:

Sales Revenue(Price set to variable manufacturing cost): $170

Variable Manufacturing Cost: : ($130)

_________________________________________________

Income Before Tax : $ 40

Income Tax (40% of Income Before Tax):40%x40 :($16)

_________________________________________________

Income After Tax: : $24

German Operation:

Selling Price: $360

Local Circuit Board Price ($155)

Additional Cost: ($115)

_________________________________________________

Income Before Tax: $90

Income Tax (60% of Income Before Tax):60%x38 ($54)

___________________________________________________

Income After Tax $36

Total Income By Alpha Communication: $24+$36=$60.0

3 0

3 years ago

16. Physical units accounted for are 160,000. Total conversion costs are $387,100. There are 4,000 units in ending inventory whi

Archy [21]

Answer: $2.39

Explanation:

Physical units accounted for = 160,000

Conversion cost = $387100

Number of units will be:

= 160,000 + 50%(4000)

= 160000 + 0.5(4000)

= 160000 + 2000

= 162000

Conversion cost per unit will be:

= 387100 / 162000

= $2.39

6 0

3 years ago