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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.

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Ed's Print Shop received an invoice dated May 10 for $2,500 with terms 3/10, 1/15, n/60. On May 22, Ed's Print Shop sent a parti

artcher [175]

Amount to be credited = $2,020

Outstanding balance = $480

Explanation:

The payment terms state that

3% discount may be taken within 10 days of the invoice date (up to May 20); or

1% discount may be taken within 15 days of the invoice date (after May 20 but not later than May 25); or

The net amount is due within 60 days of the invoice date if advantage is not taken of the cash discounts offered.
The 3% cash discount is not applicable as the payment was made on May 22 which is after the end of the discount period. However, the 1% discount is allowed, since payment on May 22 is within the 15-day period for the 1% discount.

Amount to be credited

= 2000 / (1−0.01)

= 2000 / (0.99)

= $2,020

Outstanding balance

= 2500 - 2020

= $480

3 0

3 years ago

It becomes particularly urgent for a company to consider diversification when there are needs to avoid putting all of its "eggs"

Lisa [10]

The answer to this question is diminishing market opportunities and stagnating sales in its principal business.
Companies should only consider diversification if the previous product that thye make is already succesful and they have enough capital to pursue another segment of the market. If the sales is still stagnant, it best to use the capital to reinvest in the current product until the growth is assured. (or even just stop the production for that product and start pursuing another)

8 0

3 years ago

F banks kept 100 percent of deposits on hand as reserves, the reserve requirement ratio:

Paraphin [41]

Answer:

Option (B) is correct.

Option (D) is correct.

Explanation:

If banks kept 100 percent of deposits on hand as reserves, then this will indicate that all the deposited amount would be saved as reserves. Therefore, the reserve requirement ratio is 100% here which means that:

Reserve ratio = 100%

= 100 ÷ 100

= 1

and the money multiplier = 1 ÷ reserve requirement ratio

= 1 ÷ 1

= 1

Banks would not be able create new money by giving loans because the reserve requirement ratio is 100%.

7 0

3 years ago

Edward is a partner in ENS, Ltd. The partnership generated a loss during the current year. Edward's share of the loss was $7,000

antiseptic1488 [7]

Answer:

Edward can deduct his $7,000 loss from his adjusted gross income (AGI). Partnerships are investments that you make regardless of whether you work for them or not. One of the key characteristics of partnerships is that they are not taxed as separate entities, they pass-through their income or losses to the partners.

3 0

3 years ago

EB9.

madreJ [45]

Answer:

Amount of inventory transferred=$197,600

Amount of inventory in work in process=$39,900

Explanation:

Amount of inventory transferred=Number of units*cost per unit

cost per unit= material cost per unit+ conversion cost per unit

=$9+$4

=$13

Amount of inventory transferred=15,200*13=$197,600

Amount of inventory in work in process=3,500*9*100%+3,500*4*60%

=$39,900

4 0

3 years ago