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Sedbober [7]
3 years ago
8

The Roland Company needs to comply with the financial reporting standards of the Sarbanes-Oxley Act. One of the employees, Ken,

believes that the costs outweigh the benefits. However, his boss feels the opposite, that the benefits outweigh the costs.
Who is correct?
Business
1 answer:
77julia77 [94]3 years ago
7 0

Answer:

The boss is correct.

Explanation:

Under Sarbanes-Oxley Act, a  rules-based approach to corporate governance and reporting is used. It is based on the view that companies must be

required by law (or by some other form of compulsory regulation) to comply with established  principles of good corporate governance.

Except in the instances of exceptions provided in the act, company has no choice than to comply regardless of the cost implication because non-compliance is punishable under the act. Sometimes, it is called tick box approach

This is contrary to what is obtainable in a principled-based approach where allowance is given for explanation in the event of possible con-compliance.

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Smithson, Inc. produces two types of gas grills: a family model and a deluxe model. Smithson’s controller has decided to use a p
Fynjy0 [20]

Answer:

A.) Overhead rate = 200% of direct labor cost.

B.) $67.5 per machine hour ; $180 per setup

C.) The traditional costing applies overhead burden rate equally to all products which might sometimes give a vague picture of production cost especially that which is applied to each different product.

With the activity based costing method we could see that machining activity setup rate about 26 times the machining activity rate.

Explanation:

Overhead rate using the plantwide approach

Overhead rate = (estimated overhead cost ÷ direct labor cost)

Overhead rate = ($450,000) ÷ (75,000 +150,000)

Overhead rate = $450,000 ÷ $225,000

Overhead rate = 200% of direct labor cost.

B.) Using activity costing

machining activity cost pool = $270,000

machine setup activity cost pool = $180,000

Total Machining activity hours = (2000 + 2000) = 4000

Total machine setup activity hours = (200 + 800) = 1000

Machining activity rate = (cost /hours) :

$270,000/4000 = $67.5 per machine hour

Machining activity setup rate = (cost /hours) :

$180,000/ 1000 = $180 per setup

3 0
3 years ago
Other things being equal, foreign governments and corporations would demand ____ U.S. funds if their local interest rates were s
inessss [21]

Other things being equal,foreign governments and corporations would demand <u>More</u> U.S.funds if their local interest rates were suddenly higher than U.S. rates.For a given foreign interest rate level,foreign demand for U.S. funds is <u>inversely </u>related to U.S.interest rates.

Answer: More;inversely

<u>Explanation:</u>

U.S. funds represent the funds that are available for borrowing and interest rates means cost of those borrowings.Other countries can buy U.S funds.There is inverse relationship between U.S. interest rates and foreign  demand for U.S. funds.If U.S. interest rates are higher than a given foreign interest rate, than foreign governments will demand less of U.S funds because it will be costlier.But on the other hand if U.S.interest rates are less than a given foreign interest rate,than other countries will demand more of U.S. funds because it will be cheaper for them.

So demand curve for U.S funds and U.S interest rates is downward sloping.It has negative slope.

5 0
3 years ago
Stadford Inc. is financed with 40 percent debt and 60 percent equity. This mixture of debt and equity is referred to as the firm
lesya692 [45]

Answer: Capital structure                            

Explanation: In simple words, capital structure refers to the proportion of different securities that an organisation uses as a combination to fund its operations. In other words, the amount of debt and equity in total capital in hand of the business is termed as capital structure.

Capital structure is of high importance to the investors as it directly impacts the liquidity and profitability of the organisation.

The ability of a company to bear its short term obligation is called liquidity and the ability to generate profit with given amount of resources is called profitability.

8 0
3 years ago
Bruno and Diana are trying to calculate their gross income. Which of the following items should they exclude from their gross in
arsen [322]

Answer: $15,000 gift from Diana’s mother for the down payment of their new house

Explanation: under the US code 102- Gifts and other inheritances. Gross income does not include the value of property acquired by gift. Money given as gifts to purchase a property are not taxable.

4 0
3 years ago
Which of the following factors least constrains high performance in planning organizations?
Artemon [7]

Answer:

environment is the correct answer.

Explanation:

3 0
3 years ago
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