Answer:
(E) Managers need to stay alert to environmental changes that may impact the implementation of a plan and respond as needed.
Explanation:
Planning has to be dynamic and not static. Manager who are aware of the trends in an economy are suppose to, expected to adjust their plans to align with the present economic reality in other not to run into crisis.
Credit side of a the balance of revenue account is transferred
Answer:
The subsidiary reports cost of goods sold at A. $660,000.
Explanation:
Cost of goods sold is the direct cost of producing or purchasing the goods sold by a business. The formula for cost of goods sold is as follows:
Cost of goods sold = Opening inventory + Purchases - Closing inventory
The subsidiary calculates its cost of goods sold as follows.
Opening inventory $120,000
Add: Purchases $720,000
Less: Closing inventory ($180,000)
Cost of goods sold $660,000
Therefore, the correct option is A. $660,000.
Answer:
$29,050
Explanation:
The computation of the residual income is shown below:
Residual income = Net operating income - Minimum required income
= $83,000 - $53,950
= $29,050
Here
Minimum required income = Average operating assets × Minimum required rate of return
= $415,000 × 13%
= $53,950
This should be the answer and the options provided are wrong
