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Papessa [141]
3 years ago
12

Using ABC in a service company

Business
1 answer:
Ilia_Sergeevich [38]3 years ago
6 0

Answer:

Blanchette Plant Service

ABC Costing Technique:

1. Total cost of the Kerry job:

Plants =            $750

Direct labor =  1,300

Total cost = $2,050

2. Determination of operating income or loss (Kerry's job):

Service Revenue =   $3,540

less cost of service    2,050

Operating income = $1,490

3. With desired operating income of 30% of cost:

Operating income = $615 ($2,050 x 30%)

The company can charge the Kerry job $2,665 ($2,050 + 615) or ($2,050 x 1.3)

Explanation:

Operating income or loss is the difference between revenue and costs of providing the services or goods.  When the revenue exceeds the operating cost, the difference is an operating income.  When the revenue is exceeded by the operating cost, the difference is an operating loss.  While the former means that the organization has added value to its resources, the latter implies that the organization has lost some value to its resources, thereby reducing the equity of the owners in the business entity.

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A major factor contributing to the growth in the use of direct marketing IMC efforts is:__________
il63 [147K]

Answer:

a. increased use of credit and debit cards and online shopping by consumers

Explanation:

The IMC stands for Integrated marketing strategies in which the focus of the company to promote more and more products in social websites in order to maximize the company sales

The direct marketing could be done via various modes like - television, social sites, print media, etc

Now the major factor i.e contributed to the growth of IMC because of excessive use of cards i.e debit card and credit card for online shopping or for any other purpose

4 0
2 years ago
When you state a business rule that pertains to your​ organization, such as​ "at my​ university, a student may declare only one
Ilia_Sergeevich [38]
When you state a business rule that pertains to your​ organization, such as​ "at my​ university, a student may declare only one single​ major," you are actually defining the​ maximum cardinality of the relationship between students and majors. <span>Maximum cardinality is the maximum number of instances of an entity that can be associated with each instance of another entity.</span>
6 0
3 years ago
. In January, Vorst Co. purchased a mineral mine for $2,640,000 with an estimated 1,200,000 of removable ore. After it has extra
V125BC [204]

Answer:

$144,000

Explanation:

Calculation to determine what amount should Vorst report as depletion

First step is to calculate the Depletion base using this formula

Depletion base= Purchase price +Development costs+Estimated restoration costs-Expected salvage value

Let plug in the formula

Depletion base=$2,640,000+ $360,000+$180,000-$300,000

Depletion base=$2,880,000

Second step is to calculate the depletion

Depletion= ($2,880,000 / 1,200,000 tons).

Depletion=$2.40 per ton

Now let calculate the Depletion expense

Depletion expense =$2.40 per ton ×60,000 tons sold

Depletion expense=$144,000

Therefore the amount that Vorst should report as depletion is $144,000

7 0
2 years ago
Kenisha decided to write her persuasive speech on "human cloning." she didn't feel comfortable using internet sources and so rel
ddd [48]
The problem of Kenisha's research is that it is not reliable enough for the reference material that she used is last year. She should have at least checked on articles that are new and are updated in order for it to be reliable enough and to be promoted.
7 0
3 years ago
If the reserve requirement is 20% and commercial bankers decide to hold additional excess reserves equal to 5% of any newly acqu
Romashka [77]

Answer: 4

Explanation:

Based on the information provided in the question, the effective monetary multiplier for the banking system will be calculated as:

= 1/Reserve ratio

= 1 / (20 + 5%)

=1/(0.20+0.05)

= 1/0.25

= 4

Therefore, the effective monetary multiplier for the banking system is 4.

8 0
3 years ago
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