Two examples of a management information system

Sam's Toys budgeted sales of $ 700 comma 000 for the month of November and cost of goods sold equal to 60% of sales. Beginning

loris [4]

Answer:

Purchases = $421,000

Explanation:

Sales for the month = $700,000

Cost of goods sold = 60 % of sales = $700,000 $\times$ 60% = $420,000

Opening inventory = $50,000

Closing Inventory = $51,000

We know,

Cost of goods sold = Opening + Purchases - Closing

$420,000 = $50,000 + Purchases - $51,000

$420,000 + $51,000 - $50,000 = Purchases = $421,000

Options provided are invalid

Purchases = $421,000

3 0

3 years ago

The saying "leaving money on the table" is associated with a predatory pricing strategy that results in excessive seasonal disco

andrew11 [14]

It is associated with using a market penetration strategy when there is an opportunity for price skimming. Leaving money on the table means that during a business deal or negotiation one of the parties does not receive the amount of money they could have earned, instead they accept a smaller sum. This strategy can be beneficial or hurtful depending on the scenario.

8 0

3 years ago

Delar Co. completed its year-end physical count of inventory. The inventory was valued at first-in, first-out (FIFO) costs and t

Alexeev081 [22]

Answer:

C. $500,000

Explanation:

FOB which means free on board is a phrase used in commercial law indicating the point where either the buyer or seller is liable for goods that are damaged or destroyed during shipping. In FOB destinations, the title of ownership and risk is transferred to the buyer at the buyer's office, loading dock, post office and so on. Therefore, it is correct to include inventory that was shipped in inventory physical count due to the fact that inventory wasn't delivered to customer at year end.

While the goods held for consignment are not sold but rather they are given to an agent for possible sale. They are included in the inventory of the consignor. Thus, this is why Declar should report $500,000 as inventory at the end of the year.

5 0

3 years ago

On the multiple-step income statement, "gross profit" (also known as "gross margin") is calculated as follows: Select one: a. Ne

weeeeeb [17]

Answer:

Option A Net revenues less cost of goods sold

Explanation:

The IASB sets the Financial reporting framework which states that the gross profit will be derived from the deduction of cost of goods sold from the Net revenues. So the correct option is Option A.

3 0

3 years ago

Arthur corporation has a margin of safety percentage of 25% based on its actual sales. the break-even point is $300,000 and the

Phantasy [73]

Actual Profit (P) is equal to Actual Sales (S) minus Total Expenses (E). Given that the Margin of Safety percentage (M) of Total Sales is 25%, we can establish an equation relating the Total Sales, Break-even point and M. It would be S - $300,000 = 0.25S, since Margin of Safety is equal to Total Sales minus Break-even point. Solving for S would result to $400,000. Given that E is equal to 45% of S, E would then be equal to $180,000. Solving for P, P = $400,000 - $180,000. Therefore, P is equal to $220,000.

4 0

4 years ago