Answer:
Accounting profit = $45,000
Economic profit = $5,000
Explanation:
The computation of accounting profit and economic profit is shown below:-
Accounting profit = Sales - External expenses
= $75,000 - $30,000
= $45,000
Economic profit = Accounting profit - Implicit cost
= $45,000 - $40,000
= $5,000
Therefore for computing the accounting profit and economic profit we simply applied the above formula so that each one could arrive
Answer:
c) the incentive structure accompanying market prices.
Explanation:
The invisible hand explains the unintentional social advantages of ego-interested actions of people, a term first proposed by Adam Smith in The Theory of Moral Sentiments, published in 1759, referencing it with respect to the distribution of revenues.Administrators offer multiple incentives, that are bonuses or encouraging variables that push the person to function effectively and in the long term interest of the principal. The incentive structures contain price / referral fees, annual bonuses and compensation for performance
Answer:
Subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, and then multiplying that amount by 100.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). It can be defined as the field of accounting involving specific processes such as recording, summarizing, analysis and reporting of financial transactions with respect to business operations over a specific period of time. Financial experts or accountant uses either the cash basis or accrual basis of accounting.
There are two (2) main methods used in financial accounting for analyzing financial statements and these are;
I. Vertical analysis.
II. Horizontal analysis.
Horizontal analysis compares historical financial informations over a number of reporting periods.
In horizontal analysis the percent change is computed by subtracting the base period amount from the analysis period amount, dividing the result by the base period amount, and then multiplying that amount by 100.
Answer:
overhead
direct labor
direct materials
Explanation:
Process operations can be regarded as process manufacturing it can be explained as mass production method that is been followed when producing products following a continuous flow.
It can be regarded conveyer belt system which brings about production of identical as well as standardized item with fast rate as regards the speed. It should be noted that In a process operation, each process has a separate department which will accumulate costs for ;
✓overhead ( ongoing costs that is gotten in operation of a business)
✓direct labor
✓direct materials
Answer:
Sheridan Company
Income Statement
For the year ended December 31, 202x
Sales revenue $170,400
Cost of goods sold <u>($129,600)</u>
Gross profit $40,800
Period costs <u>($24,000)</u>
Operating income $16,800
cost of goods manufactured 2019 (or 2020, it is the same)= (20 x $4,500) + $18,000 = $108,000 / 20 = $5,400 per unit
COGS 2020 = 24 x $5,400 = $129,600
sales revenue = 24 x $7,100 = $170,400
