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2 years ago

A revenue variance is the:

Business

1 answer:

IceJOKER [234]2 years ago

6 0

Answer: Option C

Explanation: In simple words, revenue variance refers to the difference between the revenue one expects to earn as per the budget made for a specified period of time and the revenue it actually earned in that time.

Organisations calculate revenue variance to identify the reasons they are not performing well or the qualities they are performing more than expected.

This measure helps organisation in decision making as to whether they should make changes in their process, and if so then wheat changes, or should remain as they are.

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At December 31, 2019, Swifty Corporation reported the following as plant assets.

Kay [80]

Answer:

April 01 2020

Land Debit $ 2,200,000

Cash Credit $2,200,000

To record purchase of land

May 01 2020

Cash Debit $ 504,000

Allowance for depreciation equipment Debit $ 363,720

Equipment Credit $ 840,000

Gain on sale of equipment Credit $ 27,720

To record sale of equipment and to recognise gain on sale

June 01 2020

Cash Debit $ 1,450,000

Land Credit $ 399,000

Gain in sale of land Credit $1,051,000

To record sale of land and gain on the sale

July 01 2020

Equipment Debit $ 2,480,000

Cash Credit $ 2,480,000

To record purchase of equipment

December 31 2020

Allowance for depreciation Debit $ 491,000

Equipment Credit $ 491,000

To record retirement of equipment

The adjusting entry for depreciation is as follows:

December 31 2020

Depreciation expense - Equipment Debit $ 4,985,000

Depreciation expense - Buildings Debit $ 578,200

Allowance for depreciation - Equipment Credit $ 4,985,000

Allowance for depreciation - Buildings Credit $ 578,200

Explanation:

Computation for Depreciation expense for the year

Equipment Jan 01 2020 $ 48,670,000 for 4 months @ 10 %

Sales - May 01 2020 $( 840,000)

Adjusted balance May 01 2020 $ 47,830,000 for 2 months @ 10 %

Purchases July 01 2020 $ 2,480,000

Adjusted balance July 01 2020 $ 50,310,000 for 6 months @ 10 %

Depreciation expense for 4 months = $ 48,670,000*10 % *4/12 = $1,622,333

Depreciation expense for 2 months = $ 47,830,000*10 % *2/12 = $ 797,167

Depreciation expense for 6 months = $ 51,310,000*10 % *6/12 =$ 2,565,500

Total depreciation equipment $ 4,985,000

Depreciation on buildings $ 28,910,000 * 2 % $ 578,200

Depreciation has to be recorded for full year on assets retired on December 31 2020

Computation of gain and loss on sale of equipment

Cost of equipment purchased on January 1 2016 $ 840,000

Depreciation rate 10 %

Equipment sold on May 01 2020

Depreciation charged for 4 years and 3 months @ 10 %

$ 840,000 * 4.33 *10 % $ 363,720

Net book value of equipment disposed on May 01 2020 $ 476,280

Sale value of equipment $ 504,000

Gain on sale of equipment $ (27,720 )

The gain on sale of land is the difference between the cost and sales proceeds since land is not depreciated

Sale proceeds - Cost = $ 1,450,000 - $ 399,000 = $ 1,051,000

The assets that was retired on Dec 31 2020 was purchased on December 31 2010 and was considered for depreciation for 10 years and was fully depreciated and had ni book value on the date of retirement

6 0

2 years ago

What does the phrase "hearing the voice of the consumer" mean?

otez555 [7]

A. Companies have the information they need to effectively satisfy wants and needs in the marketplace.

Basically, "hearing the voice of the consumer" means taking the information that they have about what people want and actually putting the preferences of the consumer first.

4 0

2 years ago

Kyzera manufactures, markets, and sells cellular telephones. The average total assets for Kyzera is $250,000. In its most recent

Alchen [17]

Answer:

1. Kyzera’s return on assets

Return on asset = (Net income / Average total asset)*100

Return on asset = (65,000 / 250,000)*100 = 26%

26% return on assets seems satisfactory for Kyzera as compared to competitor's average return on asset 12% return on assets. It's about 117% higher than the competitor.

3. Total expenses for Kyzera in its most recent year

Expenses = Revenue - Net Income

Expenses = 475,000 - 65,000

Expenses = 410,000

4. Average total amount of liabilities plus equity for Kyzera

As we Know:

Average total Assets = Average total amount of liabilities plus equity

Average total amount of liabilities plus equity = $250,000

Explanation:

6 0

3 years ago

Think about different ways people are compensated for work, including salary compensation, hourly wages, and contracted compensa

DENIUS [597]

Answer:

Explanation:

salary is a regular fixed payment that a person earns for performing work during a specific period of time.

8 0

2 years ago

The president of the Northwoods University student body made a formal request to the IT department for additional computers in t

worty [1.4K]

Because of the formal request made, the President of the University is the:

A. initiator

<h3>Who is an Initiator? </h3>

This refers to a person who makes the first offer for a thing or starts off negotiations or requests.

With this in mind and from the given question, we can see that because the president of the University made the formal request for additional computers, then he is the initiator.