Answer:
The first option is correct
Explanation:
So as to have a justifiable reason to issue a management report on internal control, based on Section 404(a) from the Sarbanes-Oxley Act of 2002, the following responsibilities are required from the Management:
• Create and maintain adequate internal control over financial reporting for the company
• Provide criteria for evaluators to assess the effectiveness of the company’s internal control over financial reporting
• Assess the effectiveness of the company’s internal control over financial reporting based on management’s evaluation of it, at year-end (i.e., a point-in-time assessment), including disclosure of any material weakness in the company’s internal control over financial reporting identified by management.
Therefore, to have a justifiable reason to issue a management report on internal control under Section 404(a) of the Sarbanes-Oxley Act of 2002, management must do everything, except "Establishing a system of internal controls containing no material weakness" as this was not stated under Section 404(a) of the Sarbanes-Oxley Act of 2002.
Hence first option is correct.
Answer:
See below
Explanation:
With regards to the above information, the contribution margin is computed as seen below.
Contribution margin per composite unit = Selling price per composite unit - Variable cost per composite unit
= $150 - $50
= $100
Hence, the contribution margin per composite unit is $100
True. Variable costing treats fixed overhead cost as a period cost.
A variable cost changes with the number of units that are put out.
Overhead cost (which is ongoing) refers to what it takes to run the business or product the product.
A period cost refers to a cost that is linked over time for a transaction, not constant.
Answer:
a) Net Income = 68200
b) Tingler net income= 8645
Shocker net income=29655
Total net income=38300
c) No, because net income would decrease from 68200 to 38300.
Explanation:
Find the attachment for explanation/solution.
Answer:
(b) $7,000
Explanation:
retained earnings December 31, 2009 = $10,000 - $5,000 - $2,000 = $3,000
retained earnings December 31, 2010 = $8,000
dividends distributed during 2010 = $2,000
net income = ending retained earnings + dividends - beginning retained earnings = $8,000 + $2,000 - $3,000 = $7,000
