Answer:
This type of income is known as non-operating income in the financial statements
Explanation:
Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.
<span>The journal entry to record the initial write-off includes is allowance for doubtful accounts. Allowance for doubtful accounts is a contra account to accounts receivable, and therefore has debit balance. It also needs to be diminished because you already used the bad debt when you make the allowance.</span>
Answer:
112 customers per day
Explanation:
For computing the needed capacity requirement, first we have to find out the new utilization rate which is shown below:
Capacity cushion = 100% - average utilization rate
25% = 100% - average utilization rate
So, the average utilization rate is 75%
Now the needed capacity requirement is
Utilization rate = Average output rate ÷ Maximum capacity × 100
75% = 84 ÷ Maximum capacity × 100
So, the maximum capacity is 112 customers per day
We simply applied the above formula to determine the needed capacity requirement
Answer:
E. I, II, and IV only
Explanation:
Six sigma is a management technique that involves measuring the number of defective products resulting from production activities, and carefully undergoing certain processes to reduce these defects and improve quality.
The DMAIC cycle is an important process when using the six sigma technique. It involves;
• Defining the goals and objectives to be achieved and problems to be fixed.
• Measuring the production process to see how it currently performs and gathering data on defective products.
• Analysing the processes to find root causes of problems and possible causes of defects.
• Improving the process by implementing carefully formed plans which will help reduce defects.
• Controlling how the new processes are implemented to yield and sustain favorable results and deliver value to customers.
Six sigma aims to remove variations from business processes to reduce product defects and improve quality.
