Answer:
c. It eliminates the age of equipment as a factor in ROI computations
Explanation:
As we know that
The formula to compute the return on investment is shown below:
Return on Investment = Net Income ÷ Cost of Investments
Also, the gross value does not includes the depreciation expense, operating expense as the depreciation expense is a non cash expense
Therefore it eliminates the equipment age as a factor for the calculation of return on investment
hence, the correct option is c.
Kingbird Corp
A.
Dr Account Receiveable $722,500
Cr Sales Revenue $722,500
B.
Dr cash $708,940
Cr Account receivable $708,940
C.
Dr Bad debt expense $14,220
($22,740-$8,520)
Cr Allowance for Doubtful Account $14,220
Answer:
$239,060
Explanation:
The computation of the net income distributed to Carr as follows;
<u>
Particulars Carr Mason net income distributed Non-allocated </u>
Net income $442,000
Salary
allowance $42,000 $42,000 $400,000
Interest
on capital $4,410 $10,290 $14,700 $385,300
left amount $192,650 $192,650 $385,300 $0
Net income $239,060
Answer:
E. a straight salary.
Explanation:
Straight salary is a compensation method where the salesperson receives a fixed amount. Regardless of the level of output, the salesperson does not get any sales commissions or bonuses. Straight salary is time tied, not performance-focused.
Straight salary is suitable when the business objective is long-term market presence and not short-term high sales volume. It is also used when it is difficult to isolate an individual's effort from team performance.
Straight salary or time-bound salaries do not encourage individuals to put in extra efforts. The other options have commissions and bonus, which is not a feature of straight salaries.