Answer:
Improve your budgeting skills
Explanation:
When your expenses each month exceeds your income, it probably means that your budgeting skills are ineffective or you don't have non at all. If you spend more than what you earn, then chances are high that you will need to borrow to service your excess expenditure. If you continue borrowing to meet your budget, then you might end up in perpetual debt where you are unable to pay back you loan. This often leads to a default, which can have some serious consequences to your credit. Luckily, there are various steps that one can take to meet their expenditure and also to put them on the right track towards financial independent.
The best way towards financial freedom is improving ones budgeting skills through the following methods;
1. Track your spending: most of the time people spend without necessarily knowing where their money goes. Expenditure tracking is a way in which you can record where your money goes. One will be surprised at how small cutting down on wants rather than needs can help in the long run.
2. Plan ahead: financial success needs one to plan ahead. Planning helps one avoid any surprises that might pop up. A plan is always like a map of showing you how much and when to spend your money.
3. If possible look for alternative sources of income: if there is a part-time job that you can do to an extra income, this could cover the excess expenditure above your income and elevate you from debt.
For the advertising expense, the expense shall be calculated for three months of the third quarter. The total amount of advertising expense $40,000 is paid for 12 months hence expense for three months shall be (40000*3/12) = $10,000
The amount of $430,000 is prepaid repair and it shall be adjusted as Repair expense only when the actual repair is incurred. Hence according to the information given, there shall be no repair expense recognized for the third quarter.
Hence total expense in the third quarter interim financial statements shall be <u>$10,000</u>
The correct answer is choice c, it involves high dependency on vendor.
Cloud-based housing involves a business having its information stored on remote servers hosted on the internet, rather than having it in-house on their personal computers or servers. While their are many advantages of this, the biggest disadvantage is that there is a high dependency on the vendor that you use.
Answer:
$76,000
Explanation:
If we are going to prepare a flexible budget we need to calculate how much Seaworthy should have spent in labor costs in order to produce 2,000 units:
labor cost = 2 hours per unit x $19 per hour x 2,000 units = $76,000
If we compare the flexible budget to Seaworthy's actual costs, we will find an unfavorable variance of $250,000 (=$326,000 - $76,000). Obviously something went wrong with Seaworthy's production.