Answer:
Classifying a cost as either direct or indirect depends upon B: whether the cost can be easily traced with the cost object
Explanation:
The classification of a cost as direct or indirect depends on the connection to the cost object. If the cost can be linked undeviatingly to the cost object, it is direct. On the contrary, if it can't be traced to the cost object it is indirect.
A. whether a cost is fixed or variable. Incorrect. A direct cost can be fixed or variable.
B. whether the cost can be easily traced with the cost object. Correct.
C. the behavior of the cost in response to volume changes. Incorrect. This is a variable cost (or fixed that changes in relevant range)
D. whether the cost is expensed in the period in which it is incurred. Incorrect.
Answer:
Explanation:
In 2016, She should recognize 4000+3000+2500+2000=11500, because the gift cards in amount of $11500 were redeemed
In 2017, the remaining revenue should be recognized 18000-11500=6500
Answer:
The financial advantage (disadvantage) from further processing is $0.40.
Explanation:
Compute the financial advantage (disadvantage) of further processing of T-bone into filet mignon and New York cut steaks using the equation as shown below:
Financial advantage = Total sales from further processing −
Sale revenue lost of one T−bone − Cost of further processing
=$8.90−$7.95−$0.55
=$0.40
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Hence, the financial advantage (disadvantage) of further processing of T-bone into filet mignon and New York cut steaks is $0.40.
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Working Notes:
Compute the total sales from further processing using the equation as shown below:
Sales from further processing = One Fileted Mignon + New York Cut
=$4.50+$4.40
=$8.90
Hence, the total sale from further processing is $8.90.
Compute the Sales revenue from one fileted mignon after further processing using the equation as shown below:
One Fileted Migon = (Selling price per filet mignon×Yeild per ounce / Size of one T−bone steak
)
= $12×6 ounce / 16 ounce
=$4.50
Hence, the sales revenue from one fileted mignon after further processing is $4.50.
Compute the Sales revenue from one New York cut after further processing using the equation as shown below:
New York cut = (Selling price per New York cut × Yeild per ounce / Size of one T−bone steak
)
= $8.8×8ounce / 16 ounce
=$4.40
Answer:
The correct answer would be option C, $984000
Explanation:
Account Receivables on January 1 = $296000
Expected Sales for January= $860000
Cash sale Expectation = 20% of Sales
= 20% of 860000
= 0.2*860000
Expected Cash Sale = 172000
Remaining 80% of Sales would be on account as:
= 80% of 860000
= 0.8 * 860000
= 688000
Out of this 80% sales, 75% are expected to be collected in the month of sale, that is:
= 75% of 688000
= 0.75*688000
= 516000
So the January cash collections would be:
Account Receivables for Jan + Expected Sales on Cash + Cash received from account on the same month of sale:
Total Cash Received in the month of Jan:
= 296000+172000+516000
= $984000
