Answer:
the transaction is complete and the goods or services are delivered.
Explanation:
According to generally accepted accounting principles (GAAP), the revenue should be recognized when the goods or services are delivered and the transaction is completed in all respects.
The revenue recognition principle applies when the revenue is realized or earned whether cash is received or not plus it also follows the accrual basis of accounting. Here, realizable means that customer received the product but the payment is made at the later date
Answer:
1) $0.27 per loaf of bread
2) $0.28 per loaf of bread
3) 3.7%
Explanation:
current production = 1,800 loaves per month
current labor expense = $8 per hour
constant utility cost = $800
ingredients per loaf = $0.40
multi-factor productivity = total output / (labor + materials + overhead)
current multi-factor productivity = 1,800 loaves / ($5,120 + $800 + $720) = $0.27 per loaf of bread
new output level = 1,800 x 1.35 = 2,430 loaves
new multi-factor productivity = 2,430 loaves / ($6,912 + $800 + $972) = $0.28 per loaf of bread
% increase = ($0.28 - $0.27) / $0.27 = 3.7%
Answer:
From a cost savings perspective the switch should be made in-house
Explanation:
In deciding whether Cool Systems should make or buy the switch , we calculate the relevant applicable to both situations,then compare t see which option saves costs.
The cost of making the switch is calculated thus:
Direct materials per unit $5
Direct labor $3
Variable overhead <u>$6</u>
Total relevant cost <u> $14</u>
The cost of purchasing the switch from another supplier is $15
From the above analysis, it is preferable to make the switch in-house as that option saves $1($15-$14) per switch.
However, it might be that we need to look beyond cost savings sometimes,purchasing the switch from another supplier might be viable if the quality of the outside switch is better or that the outside supplier can deliver in timely fashion.
Complete question:
Joe, a human resources specialist for Jersey Office Supplies Co., rides along with the furniture delivery people to observe the problems they were encountering and what activities they were required to perform. Joe was performing a:
A. personality test
B. performance appraisal
C. BARS
D. job analysis
Answer:
Joe was performing a job analysis
Explanation:
Job analyzes are a set of protocols for defining the contents for the job and the features or criteria required for the execution of the tasks. Job analytics provide employers with knowledge that helps to recognize which personnel is ideally suited to particular work.
An example of a job analysis model might list tasks or activities of the job and determine each performance level. Within this way, the role of job analysis is critical. Many companies typically take the same generic approach without details on the task description. All workers are tested in a similar set of features or characteristics presuming that they are required for all work.
Answer: The answers are explained below.
Explanation:
• Cost of debt: The cost of debt is the interest rate that a company is charged on its debts. It is the interest paid on bonds, loans etc. The cost of debt is usually the before-tax cost of a debt.
• Cost of equity: The cost of equity is the return a firm pays to its equity investors e.g shareholders in order to reward them for the risk taken by investing their capital. Companies need capital to operate and grow hence, individuals and organizations who provide funds to such companies are rewarded.
• After tax WACC: The Weighted Average Cost of Capital (WACC) is a firm's combined cost of capital including preferred shares, common shares, and debt after the deduction of tax.
• Equity Beta: It measures the sensitivity of the stock price to changes in market. Equity Beta is also called levered beta.
• Asset beta: It is the beta of a firm without the effect of debt. It is a company's volatility of returns without its indebtedness.
• Pure play comparable: The pure play comparable is the taking of the beta estimate of another company that is comparable and in same line of business.
• Certainty equivalent: It is the guaranteed return that an individual would take now, rather than awaiting a higher but uncertain return later in the future.
