There are very few, if any, good substitutes for motor oil. therefore, the

Explain the importance of departmental income statement in an enterprise in which several separate departments function. Provide

abruzzese [7]

Answer with Explanation:

Following are the benefits of using departmental Income Statements:

Gives an understanding of where the company lacks efficiency
Helps in setting budgets and efficiency cuts so that the management of the department works hard to lower operational lead time and other efficiencies found in the operational activities. By setting the budgeted income statement for the department, the appraiser of the company performance is possible by using variance analysis method.
The Departmental Income Statement also helps in appraising performance of each department which helps identifying which department requires upper level management attention.
It is very useful when undergo financial analysis of departmental income statement which helps in identification of problematic areas, which are lowering profits and thus corrective actions can be taken to overcome these issues.
It helps in allocating of jointly shared costs of non production overheads like Accounts Department Costs, Audit Department Costs, Electricity bills, etc. This helps in better appraisal of departments and identification of appropriate basis. In the above case the appropriate basis would be Income balances for accounts department, Income Balances For audit department cost and electricity units consumption of each department.

The above benefits makes the department income statements important for the managerial use.

4 0

4 years ago

In relationship-based marketing, the focus is on enticing a buyer to make a purchase now based on such factors as low price, con

andrey2020 [161]

Answer: false

Explanation:

Relationship marketing looks at using customer service and quality of service as benchmarks in the companies marketing activities. They are developed at looking at lifetime relationship with clients. They are not about low price, convenience, packaging, or similar inducements now, these are factors for gaining a new client.

8 0

3 years ago

What are 3 helpful habits (to prepare for a big test)? Plz be specific.

Alenkinab [10]

Hello!

Here are some tips:

• Get a good night's sleep. Believe me, if I don't get at least 7 hours of sleep before a big test, my mind won't function properly and I'll forget everything I'd practised. So, please, get enough sleep.

• Eat something good before the test. It'll help you. When your belly is full, almost everything is okay! :D Seriously, eat enough so that you wouldn't get hungry during the test, and you'll have less to think about. Also, make sure the food doesn't contain too much sugar.

• Take breaks when you're studying. Do NOT cram all those facts in your head, because they won't stay there. Set up a schedule and designate a specific part of every day to studying, and it shouldn't be longer than half an hour.

• Here's a bonus tip I've learned from past experiences. Please don't use TVs, phones, and anything that will distract you. If you need a calculator, USE A CALCULATOR, and not an online one. Otherwise you won't be as productive and it'll definitely distract you.

6 0

3 years ago

Read 2 more answers

The reorder point r = dm is defined as the lead-time demand for an item. In cases of long lead times, the lead-time demand and t

bezimeni [28]

Answer:

Please find the detailed answer as follows:

Explanation:

Daily Demand

Daily Demand = Annual Demand / Working days per year

= 5,000 units / 250 days

= 20 units per day

Economic Order Quantity [EOQ]

Economic Order Quantity [EOQ] is calculated by using the following formula

Economic Order Quantity = [(2 × Annual Demand x Ordering Cost) / Carrying Cost Per Order]½

Economic Order Quantity = [(2 × Annual Demand x Ordering Cost) / Carrying Cost Per Order] ½

= [(2 × 5,000 x 32) / 2]½

= [320,000 / 2] ½

= [160,000]½

= 400 Units

Reorder point and inventory on hand if the lead time is 5 Days

Re-order Point = 100 Units [5 Days x 20 units per day]

Inventory position and inventory on hand = 100 units [Since, the Re-order Point is less than the EOQ]

Reorder point and inventory on hand if the lead time is 15 Days

Re-order Point = 300 Units [15 Days x 20 units per day]

Inventory position and inventory on hand = 300 units [Since, the Re-order Point is less than the EOQ]

Reorder point and inventory on hand if the lead time is 25 Days

Re-order Point = 500 Units [25 Days x 20 units per day]

Inventory position and inventory on hand = 400 units [Since, the Re-order Point is greater than the EOQ]

Reorder point and inventory on hand if the lead time is 45 Days

Re-order Point = 900 Units [45 Days x 20 units per day]

Inventory position and inventory on hand = 400 units [Since, the Re-order Point is greater than the EOQ]

4 0

3 years ago

Indiana Co. began a construction project in 2018 with a contract price of $160 million to be received when the project is comple

qaws [65]

Answer:

Recognized $12.47 million gross profit on the project in 2018.

Explanation:

Total Contract price $160

Total cost incurred during the year 2018 $39

Additional cost $83

Total cost $122

Total profit $38

% cost during the year = (39/122*100) = 31.9672131147541% = 31.97%

Revenue recognized on 2018 = 39*31.97% = $12.4683 = $12.47

6 0

3 years ago