Out of the 7 internal controls, I would focus on only two: the preventive controls and the detective controls.
Preventive Controls
The main concept of preventive control is the compartmentalization of job responsibilities and check-and-balance. Accounting transactions such as processing inventory, approving refunds, writing and signing of checks, initiating money transactions, paying fixed and variable costs and the like. Each of these things are done by different departments. That is why interdepartmental cooperation is important. This is done so that any possible theft and mishandling of confidential information may be minimized because they do not know all the in's and out's of the company's accounts.
Detective controls
These controls are done to identify existing problems. Most of these controls involve audits, reviewing of inventory and transactions and reconciliation of bank and cash accounts. All of these are records that are kept for end-of-the-month report cases or when problems arise and they need to trace its origin. In this way, even in the rare cases that money has been breached, the detective controls can pinpoint the culprit.
Answer:
when costs are recognized as expenses on the income statement.
Explanation:
The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.
The expense recognition principle indicates when costs are recognized as expenses on the income statement.
For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the expense recognition principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.
Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.
Answer:
The correct approach is "dealer".
Explanation:
- Dealers would provide money supply to financial products whilst also trying to establishing a working capital of those that have been exchanged at a small concentration. By mobilizing savings, dealers generate more money out of the expansion respectively bids and start questioning for quotes.
- To make profits, individuals consider purchasing lesser at either the contract offer, as well as take revenue at either the request and then, have a high turnover.
Answer:
Missing word <em>"b. Calculate the over or under applied amount for the year. c. Prepare the journal entry to close factory overhead into Cost of Goods Sold."</em>
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Predetermined Overhead Rate = $844,800 / 35,200
Predetermined Overhead Rate = $24 per machine hour
a. Total Factory Overhead Applied = $24 * 54,600 hours = $1,310,400
b. Under-applied Overhead = $1,329,000 - $1,310,400 = $18,600
c. Journal Entry
Cost of Goods Sold Dr. $18,600
To Manufacturing Overhead Cr. $18,600
Answer:
$48.50
Explanation:
Relevant costs are the costs that are influenced by managerial decisions.They are future costs that have the tendency to affect the cash flow or outflow above the current level , that are relevant in making decisions . Examples are opportunity cost , incremental cost
The relevant cost in the scenario is the cost of buying from the supplier instead of in-house manufacturing , which is $48.50