Answer:
Packaging costs - Variable (Sold) .
Sales commissions - Variable (Sold).
Property taxes on general offices - Fixed.
Shipping expenses - Variable (Sold).
Straight-line depreciation of computer equipment - Fixed. President's salary - Fixed.
Salaries of software developers - Fixed.
Salaries of human resources personnel - Fixed.
Wages of telephone order assistants - Fixed.
Costs of providing online support - Fixed.
Users' guides - Variable (Production).
Explanation:
Variable costs are incurred only when there is either production or sale of units.
If there is none, there is no variable cost.
However, fixed costs are costs that must be recognized/incurred by the company, not depending on whether there is production or sales.
These costs do not directly influence production or sale of goods.
Answer:1) forecasted sales return for the period, expenses to be incurred including overtime wages, utility bills etc, cost benefits
B) cost benefits.
2 The emotional need and the consent of the stakeholders including the staff,customer's, suppliers
3 A mental diagnoses of the reaction of stakeholders to the idea is very important and can only be deduce by psychology skills
Explanation: There is a need to find out whether staying open an extra hour will bring more sales and even with more sales , there is a need to find out if the workers will buy into the idea,they may feel that their private time is being encroached ,once the staff show dissension,it will be difficult to achieve the goal .the cost benefits of the process need to be established to make a positive decision.customers view can be gotten through questionnaire, survey etc.
2)this will allow for the emotion,mood and perception of the staff and other stakeholders be met before proceeding on this implementation,as they say happy staff means happy customer and more profits.
3) A good knowledge of psychology will help you ascertain the mood,ac ceptance of the proposal by all staff and where necessary incentives can be introduced
Answer:
$66,700
b. LIFO = $70800
67807.81
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
(8130 x 8) + [(9090 - 8130) x 6) = 70800
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
(3010 x 6) + [(9090 - 3010) x $8] = 66,700
Average cost = [(3010 x 6) + (8130 x 8)] /
18060
48640
b 65040
5760
Answer and Explanation:
The computation of the operating cash flow using the four different approaches is shown below:
1. EBIT + depreciation - taxes approach
But before that the net income would be
Sales $219,000
Less cost -$96,000
Less depreciation -$26,000
EBT $97,000
Less tax at 23% -$22,310
Net income $74,690
Now the operating cash flow is
= EBIT + depreciation - taxes
= $97,000 $26,000 - $22,310
= $100,690
2. top down approach
= Sales - cost - taxes
= $219,000 - $96,000 - $22,310
= $100,690
3. Tax shield approach
= (Sales - cost) × (1 - tax rate) + tax rate × depreciation expense
= ($219,000 - $96,000) × 0.23 + 0.23 × $26,000
= $94,710 + $5,980
= $100,690
4. Bottom up approach
= Net income + depreciation
= $74,690 + $26,000
= $100,690
