Answer:
Chester Company
Explanation:
Niche Cost Leader Strategy is to set the price for the products as lower than all the competitor's products and still be in profit. Thus by having set the lower prices than competitor's products in the market and achieving profit for the organization.
Chester Company is the strong competitor for the Niche Cost Leader Strategy company based on the given information, and the data as explained below.
- There is very low change in the stock market price ($0.45) and very low variation in closing stock price for the Chester Company. This indicates that the company has stable market stock price.
- Chester has lowest margins (35.8%) and lowest profits $3,144,115, as compared to other companies where as sales is high ($158,062,285), which is close to other companies of high sale value (Andrew - $211,593,184)
- Profit of Chester is lowest as compared to other companies, though sale is good. This indicates that the product price is lower than others. Thus it is strong competitor for niche cost leader Strategy Company.
- Production for the Chester Company is very high against the capacity of the company.
Answer:
d. None of the above
Explanation:
Remember, GDP stands for Gross Domestic Product which is the money value of all final goods and services produced within the domestic territory of a country.
Answer:
Prepare the journal entries for above accounts
Explanation:
1. Cash Dr.147,000
Sales Discount Dr.1,314
A/R Cr.148,314
2. Account Receivable Dr.5,620
Disallowance for Bad debts Cr.5,620
3. Allowance for Doubtful Accounts Dr.26,900
Account Receivable Cr.26,900
4. Bad Debts Expense Dr.26,900
Allowance for Doubtful Accounts Cr.26,900
Answer:
The amount of warranty expense on Angel's 2018 income statement is $11.58 million.
Explanation:
Income statement : The income statement is that statement which represents the income for the particular year.
The income is calculated by subtracting all types of costs from sales revenue.
The motive behind the preparation of income statement is to examine the company profitability, financial performance, etc.
The amount of warranty expense on Angel's 2018 income statement is calculated below
= Net sales × cost of warranty program
= $193 million × 6%
= $11.58 million
The other cost like repairing cost or replacement cost is not considered while calculating the warranty expense
Hence, the amount of warranty expense on Angel's 2018 income statement is $11.58 million.
Answer:
The correct answer is:
$6,998.64 favorable (b)
Explanation:
The direct labor rate/price variance is the difference between the standard cost of production and the actual cost incurred in the production process. If the actual rate of labor is less than the standard labor rate, it is said to be favorable, because lesser time is used in the production process than estimated. The reverse is the case for unfavorable direct labor rate variance.
The formula is given as:
Direct Labor Rate Variance = (SR - AR) × AH
Where
SR = standard rate = $12.88 per hour
AR = actual rate = $12.00 per hour
AH = actual direct labor hours = 7,953 hours
∴ Direct labor rate variance = (12.88 - 12.00) × 7,953 = $6,998.64 favorable
