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Greeley [361]
3 years ago
10

Cost allocation involves:_______.A. Identifying a cost driver for each cost to be allocated. B. Calculating an allocation rate f

or each cost to be allocated. C. Multiplying the allocation rate by the weight of the cost driver. D. All of the answers are correct.
Business
1 answer:
Bess [88]3 years ago
4 0

Answer:

d. all of the answers are correct

Explanation:

Cost allocation is being done:

1)  to influence management behavior and thus promote goal and managerial effort,

2) to measure inventory costs and to know of goods sold on a product or project,

3) to justify cost (e.g to justify an accepted bid).

For example, if you are to determine the amount of electricity consumed at a particular period, the number of units consumed determines the total cost to be paid for the electricity consumed. In such an instance, the number of units of electricity consumed is a Cost Driver.

   A cost driver is the most appropriate way of calculating or determining a specific cost.

   Variable cost drivers can come in the form of hourly costs, costs per unit, or batch costs, among others.

   Cost drivers can be fixed costs, such as in the case of set-up costs.

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The Jackson-Timberlake Wardrobe Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at
tekilochka [14]

Answer:

a)  

$34.4

b)

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value = \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

for the current price n = 1

thus,

Current price = \frac{\textup{Dividend paid}\times\textup{(1+growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^1}{\textup{(0.105-0.04)}}

=  $34.4

b) Price in 3 years

i.e n = 3

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^3}{\textup{(0.105-0.04)}}

=

$37.20

c) Price in 15 years

i.e n = 15

= \frac{\textup{Dividend paid}\times\textup{(1 +growth rate)}^n}{\textup{(Required return-Growth rate)}}

=  \frac{\textup{2.15}\times\textup{(1 +0.04)}^{15}}{\textup{(0.105-0.04)}}

=  $59.57

4 0
3 years ago
A company acquired an office building on three acres of land for a lump-sum price of $2,450,000. The building was completely equ
galina1969 [7]

Answer:

$735,000

Explanation:

The fair values of the assets may be used as a basis for determining the amount to be recorded for each of the assets.

This will be in a proportional manner such that the higher the fair value, the higher the actual cost assigned and vice versa to the asset.

Hence the amount to be recorded for the building

= 840,000 / (840,000 + 840,000 + 1,120,000) * $2,450,000

= $735,000

7 0
3 years ago
Sasha has a master's degree in writing, and currently works full-time as a 2nd grade classroom helper. she submits articles for
Setler [38]
Based on the scenario above, Sasha describes herself as what she say is that she is underemployed, whereas the bureaus of labor statsitics will likely classify Sasha as being employed.

-Underemployed is defined as having a worker to be underused to a job by which the individual’s skill is not used.

<span>- </span>Employed – it is defined as having to provide work to an individual and being able to pay them for their work and efforts

6 0
3 years ago
Leo is a recruitment executive for a large company. He has identified new labor resource requirements in both the marketing and
Salsk061 [2.6K]

Answer:

E. place job ads on job sites

Explanation:

The first step for Leo is to place the Job advertisement on the various job sites.  Advertising is making the public aware of the vacancy. The purpose of going public is to attract as many qualified candidates as possible. Having a large pool of candidates increases the possibility of getting the right person for the job.

8 0
3 years ago
Monty Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate of $
Genrish500 [490]

Answer:

a

Depreciation Expense $2,112 (debit)

Accumulated Depreciation  $2,112 (credit)

b.

Cash $13,860 (debit)

Accumulated Depreciation $13,200 (debit)

Machinery at Cost $26,400 (credit)

Profit and loss $660 (credit)

Explanation:

a.

2021 Depreciation Expense calculation

Depreciation Expense = $3,168 × 8 /12

                                      = $2,112

Therefore total accumulated depreciation will be :

Accumulated depreciation = $11,088 + $2,112

                                             = $13,200

b.

The following happen when the asset is sold :

  1. Derecognize the cost of asset
  2. Derecognize the accumulated depreciation of the asset
  3. Recognize the proceeds from sale
  4. Recognize the profit or loss on the sale of the asset.

6 0
3 years ago
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