Answer and Explanation:
Respected Sir,
Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions
As per your requirement please find the explanation below:
Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.
Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.
Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.
The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.
Regards
ABC
Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
Stephanie's marginal tax rate is 15%.
<u>Explanation:</u>
The Average tax rate is 8%
she pays $3.75 as the tax on $25 which makes tax rate at this point =3.75/25
= 15%
The Marginal tax rate is the percentage of income that has to be paid as tax as a result of a change in the income bracket.
For instance, if tax rate until $1-$1000 is 10%
and for $1000 and above is 20%.
So for every $ earned over and above $1000.The marginal tax rate for that sum is 20%.
Answer:
CUSTOMER EQUITY.
Explanation:
Customer relationship management is an approach to maintain a company's interaction with current and potential customers. It mainly focuses on customer retention and driving sales growth.
Customer equity is a result of customer relationship management. It is the total of discounted lifetime value of all the firm's customers. In other words, the more loyal a customer, the more the customer equity.
The theory of Customer Equity can be defined as the value of the potential future revenue generated by a company’s customers in the entire lifetime of the firm.
Therefore, an increasing number of companies are considering their relationships with customers as financial assets. Such firms measure success by calculating the value of their CUSTOMER EQUITY.
Answer:
False
Explanation:
The burndown chart is a visual analysis tool used in projects execution to express the work completed daily against the outstanding purposely to ensure that project are completed and delivered with the agreed timeline.
It measures effort in relation to the level of work done and also keep the team on daily schedule.
The chart represents the work done on the vertical (Y) axis and the time on the horizontal (X) axis.
