Answer:
the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee
Explanation:
Lori wanted to buy coffee beans for that she paid the contract price of $7.50 per pounds to mike. Mike has breached the contract which is why Lori has lost $7.50. Now to buy coffee beans she will contact some other supplier and pay them to secure alternative coffee. So, in total Lori's damages are the contract price of coffee and what she will pay some other vendor to secure coffee beans.
Answer and Explanation:
Respected Sir,
Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions
As per your requirement please find the explanation below:
Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.
Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.
Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.
The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.
Regards
ABC
Answer:
e. 10.77 percent
Explanation:
The computation of the cost of preferred stock is shown below:
Cost of preferred stock = Annual dividend paid ÷ Price of preferred stock per share
= 0.07 × $100 ÷ $65
= 10.77%
Simply we divide the annual dividend after considering the par value per share by the price of preferred stock per share so that the correct cost of preferred stock can be computed
Answer:
The statement is: False.
Explanation:
Managers must <em>make decisions based on facts and support data</em> -such as the accounting books of the company- since those sources provide <em>objective information</em> on what is happening in regards to the organization. Even if they might be allowed to follow their instinct in taking risky investment decisions, a <em>study </em>must be made before taking a step forward to analyze what the best output could be.
Thus, guessings and personal points of view are not enough for managers to conduct business.