Answer:
Conversion costs= $488,000
Explanation:
Giving the following information:
depreciation expense - factory building, $133,000
direct labor, $250,000
factory utilities, $105,000
<u>The conversion costs are the sum of direct labor and manufacturing overhead.</u>
<u></u>
Manufacturing overhead= 133,000 + 105,000= 238,000
Direct labor= 250,000
Conversion costs= $488,000
Answer:
Organic structure.
Explanation:
Organic structure: It is defined as flat organizational structure as it does not follow normal hierarchical structure, it is more of a decentralized structure with a lesser layer of management at every level, where more information is shared among employee and each department co-operate with other departments, which helps the organization to adapt well with the changes. Employees have the opportunity to participate in the decision-making process of the organization.
In the given case, Steel manufacturing firm are following an environment that is simple and integrated but also dynamic and hostile, which is a perfect organic structure.
Answer:
The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.
Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).
The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.
Explanation:
In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.
Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.
- When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
- US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
- US GAAP recognizes non-monetary exchanges while IFRS doesn't.
- IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
- There are also other minor differences regarding depreciation, disposals and impairment rules.
Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).
The answer is C they but at a discount, the entire issues of new security....
Answer:
These statements are correct:
- It makes it easier to compare prices across Europe - the Euro is the common curriency across 19 countries, but prices in those countries are far from being the same. For example, Germany is a lot more expensive than Greece (although a lot wealthier too), and Greek people can easily find out that the same product in Germany costs more euros than in Greece.
- It makes Europe an optimal currency area - in the Eurozone, economic efficiency is now higher because resources can be allocated across different countries thanks to the fact that prices can be compared in the region.
