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Sergio039 [100]
3 years ago
15

Knowing the behavior pattern of a cost is important to determine the effect on net income of a change in sales volume because as

sales volume increases or decreases: a. variable costs will not change. b. net income will change proportionately. c. the effect on net income will depend on the behavior pattern of various costs. d. fixed costs will rise proportionately.
Business
1 answer:
Kipish [7]3 years ago
5 0

Answer:

c. the effect on net income will depend on the behavior pattern of various costs.

Explanation:

When sales volume increases or decreases, to determine the effect of this on net income it is important know the behavior pattern of a cost because costs also affect the net income and they have show different patterns. Variable costs will increase or decrease according to the variation of the quantities sold and fixed cost tend to stay the same. However, they may change if, for example, it is necessary to rent a bigger space to be able to increase production and this increase in a fixed cost might take the effect in the net income of an increase in the sales volume.  So, understanding this type of behavior is important to understand how changes in sales volume can affect the net income.

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Shaw Industries purchased a large piece of equipment from Charles Company on January 1, 2014. Shaw industries signed a note, agr
andrezito [222]

Answer:

Interest expense for the year: 25,401.6

Explanation:

Carrying value of the note x 8% = interest on note payable

317,520 x 8% = 25,401.6

The interest expense will be for this amount

And the journal entry will be as follow

Interest Expense 25,401.6

   Note Payable                      25,401.6

As the note is discounted, we will recognize interest until maturity against the note, so it reach their face value at maturity.

Because this interest won't be exigible until maturity, they are accrued interest but do not invovle a cash disbursmement for the period.

6 0
2 years ago
An American company is in a joint venture with an overseas Middle East company. The U.S. managers are particular about time mana
Ne4ueva [31]

Answer:

This variation in time management is an aspect of their _cultural____ environment.

Explanation:

The working environment of countries differ.  This environment also dictates approaches to issues.  For example, this Middle Eastern company operates in a cultural environment that does not take issues with time management serious unlike the American counterpart.  The prevalent cultural environment may not be easy to overcome.  For this reason, companies engaging in international relationships should factor in this consideration of differences in culture whenever they venture outside.

6 0
3 years ago
Which of the following is not counted as a part of GDP?
Misha Larkins [42]

Answer:

C, The unsold additions to inventory at an appliances store.

Explanation:

GDP = Gross DOMESTIC Product

Since the unsold additions are not sold, there's no money coming from it, thus it is not counted in GDP.

Bonus: If you order clothes from Thailand, that is called GNP. It counts as Thailand's GDP because the money is going into the country, and it counts as America's GNP as you are buying goods from another country.

3 0
3 years ago
Prepare traditional and contribution margin income statements (Learning Objective 6) The Willowick Ice Cream Shoppe sold 8,700 s
Leto [7]

Answer:

Sales Revenues 26100

COGS              <u>    5655</u>

gross profit        20445

rent expense                 1600

depreciation expense   200

operating expense <u>2600</u>

net income                16045

   

Sales Revenues          26100

Variable Cost               <u>     6305 </u>

Contribution margin        19795

rent expense                     1600

depreciation expense       200

fixed operating expense<u>   1950  </u>

net income                   16045

Explanation:

traditional:

COGS

$12 tub / 30 ice cream cones = $0.40

+ 0.25 ice cream cones

total per unit 0.65

8,700 x 0.65 = 5655

Gross profit: sales revenue less COGS

then, we subtract the rent expense, depreicaiton expense and operatign expenses to get net income.

contribution the variable cost will be subtracted from the sales revenues

that will include the 75% of the operating expenses

The difference between sales revenue and variable cost is called contribution margin.

6 0
3 years ago
Use the following information for ECE incorporated: Shareholder Equity $100 million Assets $200 million Sales $300 million Net I
Zepler [3.9K]

Answer:

6.0

Explanation:

Market to book ratio is calculated as ; Market capitalization / Net book value.

Where,

Market capitalization = Price per share × Total shares outstanding

= $24 × 25,000,000 shares

= $600,000,000

Then,

Net book value = Total assets - Total liabilities

= $200,000,000 - $100,000,000

= $100,000,000

Therefore,

Market to book ratio = $600,000,000 / $100,000,000

= 6.0

8 0
3 years ago
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