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valentina_108 [34]
3 years ago
7

What decision rule should be followed when deciding if a business segment should be eliminated?

Business
2 answers:
bulgar [2K]3 years ago
7 0

Answer:

The segments whose revenue is less than the avoidable expense of the organization must be eliminated when the management considers the elimination of a business segment.

Explanation:

The segments contributing less than the avoidable expense of the organization are deemed to contribute negatively to the organization. Hence the organization must consider eliminating such segments in order to ensure the sustainability and growth of all the segments and organization collectively.

Further explanation:

Avoidable expenses of an organization are those expenses which generally occur only with the continuity of that particular activity. Thus, the discontinued practice of such an activity will result to end of such expenses. Such an expense includes – cost on direct labour, directly attached marketing costs, etc.

Hence the segments which yield less than the avoidable cost of the organization must be considered for the elimination as they give inadequate returns and are unprofitable for the organization.

Learn More:

The concept of avoidable cost in respect to decision making,  brainly.com/question/6480477 , Answered by W0lf93

 A decision in which a manager needs to determine whether a product line (or segment) should continue or be eliminated is what kind of decision , brainly.com/question/13120599 , Answered by Almatheia

Keywords:

Elimination of a segment, less revenue making segments, avoidable cost in elimination of segment, avoidable expense.

dusya [7]3 years ago
5 0
Here is the answer of the given question above. The decision rule that should be followed when deciding if a business segment should be eliminated is this: Segments with revenues which are less than avoidable expenses should be considered for elimination. <span>Unavoidable expense are those expense which will continue to be incurred whether segment is continued or discontinued. Hope this helps.</span>
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Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on direct labor hours to apply ov
Alex73 [517]

Answer:

Under/over allocation= $6,850 overallocated

Explanation:

Giving the following information:

The company uses a predetermined overhead rate based on direct labor hours to apply overhead to individual jobs. For the current year, estimated direct labor hours are 153,000 and estimated factory overhead is $1,208,700.

The following information is for September:

Direct labor hours: Job X 9,000 Job Y 7,500

Labor costs incurred: Direct labor ($8.00 per hour) $ 132,000

Manufacturing overhead costs:

Indirect labor 56,000

Factory supervisory salaries 13,100

Rental costs:

Factory $ 11,300

Total equipment depreciation costs:

Factory $ 12,400

Indirect materials used $ 30,700

Total= 123,500

First, we need to determine the manufacturing overhead rate:

manufacturing overhead rate= total estimated manufacturing overhead/ total amount of allocation base

manufacturing overhead rate= 1208700/ 153000= $7.9 per direct labor hour

Allocated overhead= manufacturing overhead rate* actual allocation base= 7.9* 16500 hours= $130,350

Under/over allocation= real overhead - allocated overhead

Under/over allocation= 123500 - 130350= 6850 overallocated

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3 years ago
The trial balance of Sheffield Corp. at the end of its fiscal year, August 31, 2022, includes these accounts: Beginning Inventor
Ivahew [28]

Answer:

Particulars                                                                  Amount

Beginning inventory, September 1, 2013              $18,870

Purchase                                                    $ 224,790

Less: Purchase return and allowance     <em><u>$ 5,430</u></em>

Net purchase                                             $ 219,360

Add: Freight in                                           $9,780

Cost of goods purchased                                         <u>$229,140</u>

Cost of goods available for sale                              $248,010

Less: Inventory August 31,2014                                <u>$20,100</u>

Cost of goods sold                                                   <u>$227,910</u>

6 0
2 years ago
Please do your best. 75% of my grade
Yanka [14]

Answer:

1.False

2.truth

3.truth

4.False

Explanation:

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Imani is about 4 miles away from her office when her car gets a flat tire and she has to pull to the side of the road. she now s
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8 0
3 years ago
Randall's has 28,000 shares of stock outstanding with a par value of $1 per share. The market value is $13 per share. The balanc
a_sh-v [17]

Answer: $38,200

Explanation:

There are 28,000 Outstanding shares with a $13 market value.

That means that in total they are valued at,

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Dividends are taken from the Retained Earnings meaning that the balance in Retained earnings is therefore,

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