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Mandarinka [93]
3 years ago
9

Lavender company is a logistics company and has recently implemented abc system. using activityminus−based ​information, it deci

des to reduce the bulkiness of the packages​ delivered, thereby reducing costs. this suggests that abc system helps managers in​ ________ decisions.
Business
1 answer:
AveGali [126]3 years ago
7 0
This suggest that abc systems helps managers in effective decision making.
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On January 1, Year 1, Gemstone Mining Company (GMC) paid $10,500,000 cash to purchase the rights to extract raw stone from a sur
anyanavicka [17]

Answer:

The amount of depletion  charge in year 3 income statement is $4,000,000

Explanation:

The depletion charge  would be based on volume of stone extracted on yearly basis.

The depletion charge=cost-salvage value/(total volume of stone)

The depletion charge=($10,500,000-$500,000)/50,000

The depletion charge=$200 per pound

In year one depletion charge =$200*10000 pounds

                                                      =$2,000,000

In year two, depletion charge=$200*20000 pounds

                                                      =$4,000,000

In year three, depletion charge=$200*25000 pounds

                                                        =$5,000,000

The year 3 depreciation charge is restricted to the balance of the depletion amount of $10 million

Balance of depletion amount=$10,000,000-$2000,000(year one)-$4000,0000(year two)

Balance of depletion amount=$4,000,0000

4 0
2 years ago
Why should small business owners understand the concept of contract modification and settlement of disputed and undisputed debts
nekit [7.7K]
They should understand when they need professional advice, they need to get it. Let the small business owner hire a tax accountant, lawyer, and subscribe to a debt collection service. (<span>Kevin k)</span>
6 0
3 years ago
Vertical cooperative advertising is usually legal, except when: unquantifiable emotional appeals are involved. a representation,
mixas84 [53]

Vertical cooperative advertising is usually legal, except when bogus advertising allowances are given in the form of hidden price concessions.

3 0
3 years ago
The new CFO thinks that inventories are excessive and could be lowered sufficiently to cause the current ratio to equal the indu
yan [13]

Answer:

4.50%

Explanation:

Note:<em> Question is incomplete but very similar one is attached as picture below</em>

Current ROE = Net Income / Equity = $21,000 / $280,000 = 7.50%

Current Inventory = $210,000

Target Current ratio = 2.70

1. Current assets at target Current ratio = Current Liabilities * Target current ratio = $70000 * 2.70 = $189,000

2. Reduction in Inventories = Present Current assets - Current assets under target current ratio

Reduction in Inventories = $14000 + $70000 + $210000 - $189000

Reduction in Inventories = $105000

3. Reduction on common equity using sale of inventory = Current Equity - reduction

Reduction on common equity using sale of inventory = $280,000 - $105,000

Reduction on common equity using sale of inventory = $175,000

4. Change in ROE = New ROE - Current ROE

Change in ROE = [21000 / 175000] - 7.50%

Change in ROE = 12% - 7.50%

Change in ROE = 4.50%

4 0
2 years ago
_____ should not be included on a résumé.
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Hobbies, Personal information (religion, marriage status etc), Hobbies, Lies, Too much text (looks boring), Personal photographs, Salary information.
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2 years ago
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