All categories

3 years ago

LO 7.2What operating budget exists for manufacturing but not for a retail company?

Business

1 answer:

belka [17]3 years ago

8 0

Answer:

Production Budget

Explanation:

Production Budget is usually substituted with Purchasing budget for a retail company.

The operating budget usually consist of the:

sales budget,

production budget,
manufacturing overhead budget.

However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted with Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they substitute the number of units to be purchased, to the number of units to be produced.

You might be interested in

The Wall Street Journal reported the following spot and forward rates for the Swiss franc ($/SF):Spot...........................

Gnoma [55]

Answer:

The Wall Street Journal Reports

a. The Swiss franc was selling at a premium in the forward market.

b. The 30-day forward premium was: $0.0049.

c. The 90-day forward premium was: $0.0099.

d. Dollars to receive from a 90-day forward contract is $95,310.

Explanation:

a) Data and Calculations:

Spot and forward rates for the Swiss franc ($/SF):

Spot............................................ $0.9432

30-day forward.......................... $0.9481

90-day forward.......................... $0.9531

180-day forward........................ $0.9594

Premium:

30-day forward.......................... $0.9481

Spot............................................ $0.9432

Premium = $0.0049

90-day forward.......................... $0.9531

Spot............................................ $0.9432

Premium = $0.0099

180-day forward........................ $0.9594

Spot............................................ $0.9432

Premium = $0.0162

Dollars to receive from a 90-day forward contract is $95,310 ($0.9531 * SF 100,000)

6 0

3 years ago

When we read a visual text, we look for certain conventions to help us:

klemol [59]

Answer:

D is the answer

Explanation:

6 0

3 years ago

Sandra is a production manager at a soda manufacturing and bottling plant. One of her duties is to create a monthly inventory re

GaryK [48]

Answer:

Accuracy

Explanation:

Sandra as a production manager is responsible to make a list of material received from the supplier. For an accurate list, it is important that the supplier must provide her with the detail of every inventory they provided along with the recipes. In the previews month, the supplier provided an erroneous list which leaked detail and in this case, her report cannot be considered authenticate or reliable because it lacked accuracy.

4 0

3 years ago

Consider a $10,000 machine that will reduce pretax operating costs by $3,000 per year over a 5-year period. Assume no changes in

ki77a [65]

Answer:

A) $83

Explanation:

First, find aftertax OCF per year

aftertax OCF = (Operating benefit - depreciation)*(1-tax) +depreciation

Depreciation per year = 10,000/5 = 2,000

Tax = 34%

aftertax OCF per year = (3,000 - 2,000)*(1-0.34) + 2,000

= 660 +2,000

= 2,660

Next, find the PV of the aftertax OCF per year. It is an annuity;

PMT = 2,660

N = 5

I/Y = 10%

FV = 0

then CPT PV = 10,083.493

Subtract the initial cost of the machine to find the Net Present Value (NPV);

NPV = -$10,000 + $10,083.493

NPV = $83.493

8 0

3 years ago

Antivirus Inc. expects its sales next year to be $2,500,000. Inventory and accounts receivable will increase $480,000 to accommo

DiKsa [7]

Answer:

$236,250

Explanation:

The computation of external financing is shown below:-

For computing the external financing first we need to find out the retained earning which is shown below:-

Net income = Sales × Profit margin

= $2,500,000 × 15%

= $375,000

Increase in retained earning = Net income - Dividends

= $375,000 - ($375,000 × 35%)

= $375,000 - $131,250

= $243,750

External financing = Increase in assets - Increase in retained earning

= $480,000 - $243,750

= $236,250

8 0

3 years ago