Answer:
The Competitive-parity method
Explanation:
The competitive parity method refers to an advertisement expense budgeting method wherein, a firm budgets or plans it's own advertisement expenditure which is based upon the estimated advertisement expenditure of it's competitors.
Under the method, the budget allocated for advertisement by a firm is set at par with those of the competitors.
The drawback of such a method being it's assumption of all firms having same marketing objectives. Also herein, if the competitor commits a mistake w.r.t it's budget, consequently the same mistake shall accrue to the firm following it.
In the given case, the owner learnt of his competitor's advertisement budget being $150,000, post which he immediately set the budget of his own company as $150,000. The method of promotional budgeting conveyed here is, the competitive-parity method.
Answer:
$109,000
Explanation:
The accounting equation for the cost of goods sold
COGS = opening finished good + purchases - Closing finished goods
In a manufacturing firm, purchases are also referred to as manufacturing costs.
For Leslie manufacturing:
beginning finished inventory =$40,000
costs of goods manufactured = $ 144,000
Ending finished inventory = $ 45,000
cost of manufacturing for the period:
=$40,000 +$114,000- $45,000
=$109,000
Answer:
First Question
1. B
2. A
3. B
Second Question
The $200 Paolo spends to purchase software from PC Pros.
Explanation:
1. Paolo's transaction falls under the product market cash flow because he wittingly spends on a product–the software.
2. Paolo's earnings comes to the resource market, since he is been paid for his human resourcefulness in the organization.
3. Sharon's payment for washing her car is best placed on the Product market flow since she is spending on a personal product–the car.
The $200 Paolo spends to purchase software from PC Pros in this scenario represent a flow from a household to a firm because he (an individual belonging to a household) transfers his money to the firm.
Answer:
Activity-based costing involves the identification and assignment of cost to different activities in an organization. As per definitions, the correct match of these activity descriptions and their key terms would be as follows:
A). <u>Unit-level activities</u> - These include Activities performed for each unit of production.
B). <u>Batch-level activities</u> - It includes Activities performed for each batch of products rather than each unit.
C). <u>Product-level activities</u> - These activities include the Activities performed in support of an entire product line but are not always performed every time a new unit or batch of products is produced.
D). <u>Facility-level activities</u> - These are the Activities required to support or sustain an entire production process.
E). <u>Customer Level Activities</u> - These Activities are required for supporting every single customer.
Answer:
D) $26,688
Explanation:
The computation of the present value is shown below:
= Annual payment × PVIFA for 7 years at 6%
= $4,781 × 5.5824
= $26,688
Refer to the PVIFA table
Simply we multiply the annual payment with the PVIFA so that the accurate amount can come.
The present value is come after considering the discount rate for the given number of periods
