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4 years ago

Which of the following is one effect of a purchase of $600 of supplies on credit? Select one:

Business

1 answer:

Norma-Jean [14]4 years ago

5 0

Answer:

d. It would increase liabilities by $600

Explanation:

Supplies are part of inventory, and when inventory is purchased it increases assets.

But is it purchased against cash then there is no change as assets in the form of cash is reduced by same.

Further, if these are purchased on credit then the balance of liabilities increases as the increase in liabilities and increase in assets keep the balance sheet equation matching.

Thus, purchasing on credit will increase the liabilities.

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Powell Lighting was the first company to start selling LED light bulbs in its country—a product that gained popularity among div

morpeh [17]

Answer: sustainable competitive advantage

Explanation:

Sustainable competitive advantages refers to the assets and the abilities of a company that are difficult for others to duplicate and thereby giving the company an edge over others.

Since Powell Lighting decided to limit its LED light bulbs to outdoor models and ensured that the models were the longest-lasting and lowest-priced on the market thereby giving it an edge over its competitors.

In this scenario, Powell Lighting maintained a sustainable competitive advantage through its innovative strategy.

3 0

3 years ago

The City of Oak Park constructed a new storage facility using the city's own public works employees. Construction costs were inc

Alenkasestr [34]

Answer:

The $900,000 should be capitalized in the government-wide statements

Explanation:

The amount which is to be capitalized in the financial statement should be an asset or an expense that is not showing in an income statement.

In the given question, the construction cost of a new storage facility is $900,000 plus it has $25,000 interest on short term notes.

So, $900,000 should be capitalized, and $25,000 would not be capitalized because it is of short term period which is shown in the income statement.

4 0

3 years ago

1. BBQ sells over 200 products. Product A has sales of 400,000 units per year. The carry cost of each product is $36. The order

Mrac [35]

Answer:

a) The optimum order quantity is 789 units per order.

b) They have to reorder every 0.72 days.

a) It is not a good policy.

b) The quantity per order is greater than the optimum quantity per order.

c) The order quantity should be 632 units/order

Explanation:

The carry costs are the costs incurred by the company for having the products in stock (financial, storage, etc). They are proportional to the average inventory held by the company.

The order costs are the costs associated with the purchase order. They are proportional to the amounts of purchase orders by unit of time.

a) The optimum order quantity can be calculated with the Economic Order Quantity (EOQ) formula. This formula minimizes the sum of the carry costs and the order costs.

In this formula:

EOQ: Economic Order Quantity or optimum order quantity

S: Order costs

D: Annual quantity demanded

H: Carry cost

$EOQ =\sqrt{\frac{2SD}{H} }=\sqrt{\frac{2*28*400,000}{36} }= \sqrt{622,222.22} =788.81 \approx 789$

The optimum order quantity is 789 units per order.

b) If the annual demand is 400,000 and the quantity per order is 789 units, the company will do 506.97 orders a year.

$\frac{400,000\,units/year}{789 \,units/order}= 506.97 \,orders/year$

If we take 365 days a year, we have 1.39 orders a day.

$506.97\frac{orders}{year}*\frac{1\,year}{365\,days}= 1.39 orders/day$

This means it has to reorder every 0.72 days.

2) If we apply the EOQ formula we get:

$EOQ=\sqrt{\frac{2SD}{H} }= \sqrt{\frac{2*40*75,000}{15} }= \sqrt{400,000}= 632.45$

a) It is not a good policy.

b) The quantity per order is greater than the optimum quantity per order.

c) The order quantity should be 632 units/order

8 0

3 years ago

Which of the following statements is true?

Ivan

Answer:

Statement b. is True

Explanation:

When using variable costing method, all the costs which are variable in nature is charged based on per unit basis and is not periodic in nature, as depends o quantum of production and sales.

While considering fixed cost, it is considered periodic in nature as this does not depend on quantum of production or quantum of sales, as this is fixed in terms for a period it is periodic in nature, and is treated unavoidable even at a level where no units are produced.

Thus, Statement b. is True.

7 0

4 years ago

Donna, vice president of finance, and bob, vice president of human resources, are ____ managers.

LuckyWell [14K]

They are considered to be functional managers—a functional manager is those people with authority that are given to them in a way of controlling a certain department, business or organization, in other words, they have to manage an organizational unit.

5 0

3 years ago