<u>Answer:</u> Reciprocal method
<u>Explanation:</u>
Under reciprocal method the cost incurred is allocated to other departments using some equations. Using this method the costs can be accurately distributed. It is also a complicated method of allocating the costs. The service department costs are allocated to and from other service departments.
The overhead costs are allocated based on the objective method. The service department costs can be allocated to the production departments and other departments. The efficiency of the service departments can also be identified.
Answer:
1. Subrogation
Explanation:
PAYMENT BY SUBROGATION
Also called Oblique or indirect Action is one that allows creditors to exercise all the rights and actions of their debtor, with the exception of those inherent in their person; Its purpose is the defense, by judicial means, of its own pecuniary interests.
The subrogation payment occurs when a person other than the debtor pays the obligation and because of that payment the initial creditor transmits to him the rights he had as a creditor. It is a kind of personal subrogation because the third party is placed in the same legal position as the creditor.
Answer:
27
Explanation:
The computation of the optimal stocking level for the bakery is shown below:
Given that
Cost = c = $7
Selling price = p = $ 10
salvage value = s = $ 5
Mean = 25
Standard deviation = = 8
Now based on the above information
underage cost = Cu = p-c = $10 - $7 = $3
And,
overage cost = Co = c-s = $7 - $5 = $2
So,
= 0.6
Now use normsinv() function in excel
So,
The Z value for the probability 0.6 is 0.2533
Now finally
The optimal stocking level is
= 25 + 0.2533 × 8
= 27.02
= 27
Answer:
31 payments
Explanation:
the present value of the first annuity is:
$1,200 / (1 + 1%)⁸ + $1,200 / (1 + 1%)¹⁶ + $1,200 / (1 + 1%)²⁴ + $1,200 / (1 + 1%)³² + $1,200 / (1 + 1%)⁴⁰ = $1,108.18 + $1,023.39 + $945.08 + $872.76 + $805.98 = $4,755.39
to determine the length of the second annuity:
PV = annuity payment x annuity factor
annuity factor = PV / annuity payment = $4,755.39 / $180 = 26.4188333
using an annuity table we must look for a present value annuity factor that corresponds to 1% interest rate and is close to 26.4188333
the annuity factor is between 30 and 31 payments. Since the final payment has to be less or equal to $180, we have to choose 31 payments.
Answer:
bank credit
Explanation:
A bank credit is money that is collected from a bank or financial institution that is determined by the ability of the person to repay the loan and the total money the bank has available to pay.
The bank calculates the ability of the person to pay back a certain percentage of the loan over a particular period before disbursement.
In the given scenario Parker's expansion will cost approximately $150,000 in construction costs. Purchasing the additional inventory will cost $50,000. Over the next two years Parker believes this will increase sales 20% and profitability 25%.
The bank will verify the efficacy of these projections and give the loan to Parker