Answer:
B. Income Tax Expenses
Explanation:
The Purpose of the Income Statement in Financial Statement Preparation is to ascertain the profit or loss of a business entity for a particular year. Usually, the format is as follows:
1. Gross Profit= Sales- Cost of Goods sold(Opening Inventory + Purchases- Closing Inventory)
2. Net Profit/ Net Loss = Gross Profit + Other Revenues and Gains - Expenses for the period.
However, income tax expense is only calculated when the net profit has been ascertained. It is usally referred to as net income before tax. It is based on this figure, that the income tax expense is then calculated based on prevailing income tax percentage.
Every other part of the income statement covers a section, but all sections should be calculated and concluded before the income tax expense can be calculated and then subtracted to arrive at the final income tax.
Answer:
See explanation below as attached.
Explanation:
1. Predetermined overhead is 139% of direct labor hour
2. Under applied overhead is $6,200
Please find attached breakdown and solution to question 1, 2, 3, 4 and 5.
The correct answer to this question is choice A.
The definition of Imperfect Competition is when there is a situation in a market where there are features of a competitive market, but also characteristics of a monopoly. The other three choices are characteristics of a competitive market.
Answer:
Diseconomies of scale are when production output increases with rising marginal costs. ... Fixed costs do not change with increases/decreases in units of production volume, while variable costs are solely dependent, which results in reduced profitability. They show how well a company utilizes its assets to produce profit.
Explanation:
It's true.
Answer:
The answer is by charging lower price on remaining three ticket (any ticket price above $0)
Explanation:
As company is not giving any refreshment so it not incurring any variable cost. So here sales is equal to contibution and every single dollar revenue generated is a contribtion towards fixed cost and targeted profit. So by decreasing sale price on remaining tickets company will be able to sell them and this sale will result in more profit to the company.
