A favorable direct materials cost variance occurs when the actual direct cost of the materials is lower than the budgeted cost of materials. Favorable direct materials cost variance would indicate<span> that there was savings with the cost for the direct materials used by the company.</span>
Answer: (A)
If both companies collude and agree on the best joint strategy, then neither of them will advertise.
Explanation:
If PM Inc. and Brown Inc. agree on a strategy that is best for both of them, then they would decide not to advertise as this line of action will earn them both $50 million, which is higher than they stand to earn if they both advertise.
Answer:
$26,600
Explanation:
Bad debts expense based on a percentage of credit sales requires an adjusting entry equal to the percentage of credit sales; no consideration is given to the ending balance of the allowance account when computing the adjustment.
The adjusting entry will include a credit to the Allowance for Doubtful Accounts account for $26,000 (or $650,000 x .04).
Note, however, that this question asks for the ending balance in the allowance account.
Since there is a $600 credit balance prior to adjustment, the balance in the allowance account after adjustment will be $26,600
(the credit balance of $600 + a credit of $26,000 will yield an ending credit balance of $26,600).
Answer:
A) On the 32,000 sale it will be considered a 18,000 gift to the buyer.
Because is above the 15,000 gift per person per year, it will trigger the gift tax.
B) 70,000 will generate a long-term capital gain of 20,000
C) gift of 5,000 it will not trigger the gift tax.
Explanation:
When the sale is below market value, it is treated as a gift to the buyer.
The capital gain or losses are considered using the adjusted basis.
Because Holly acquiredthe land for more than a year, it will be cosnidered a long-term capital gain if any.
Answer:
Exclusive distribution
Explanation:
Exclusive distribution is defined as an agreement between a producer and retailer that gives the exclusive right to a retailer to distribute the products of a supplier within a given geographical location. Only one distributor is used by the supplier within a given area.
In the secanrio given Giant Beanstalk a company that processes and cans vegetables, recieves raw materials from over 80 companies. It only gives distribution rights to Greenleaf a grocery chain with 38 stores in the country.