Answer:
d. growth rate of real GDP per person.
Explanation:
The level of well being of a country can be found by considering the price-index, i.e The real GDP per person and not nominal GDP per person.
Answer:
False
Explanation:
Correlation tells you if there is association between two or more variables. Regression analysis model allow you to predict one variable from the other.
Answer:
D) Johnson has failed to use the correct cost driver as the cost-allocation base for setup costs.
Explanation:
One of the main disadvantages of ABC costing method is that it is very hard and expensive to implement, and sometimes you cannot allocate all overhead costs to specific cost drivers. That is what happened here with Johnson's costing method, they combined two cost drivers and allocated resources using the number customer orders which is not a valid base, e.g. one single large order represents higher costs than 10 small orders.
ABC costing is not accepted by US GAAP due to its limitations or how hard it is to apply correctly, but it is a very useful information source for making decisions. The problem is, if gathering the information is worth the effort and extra cost of ABC?
Answer:
The following applies:
1. expenses when incurred to generate revenue.
2. expenses even when cash has not yet been paid
3. revenue even when cash has not been collected
4. revenue when earned
Explanation:
Accrual basis is an accounting concept that recognizes revenue when earned when if the collection of cash will be done later.
It also recognizes expenses when incurred even though the cash has not been spent.
Accrual basis matches a transaction with when it happened.
It is different from cash basis which recognizes revenues only when the cash is received and expenses only when the cash has been spent.
Answer:
D$138,000
Explanation:
We know that
Direct material used = Beginning balance of raw material inventory + purchase made during the year - ending balance of raw material inventory
$130,000 = $32,000 + purchase made during the year - $40,000
$130,000 = -$8,000 + purchase made during the year
So, purchase would be
= $130,000 + $8,000
= $138,000
