Answer:
The correct answer is outsourcing.
Explanation:
This is the business economic process in which a commercial company transfers the resources and responsibilities related to the fulfillment of certain tasks to an external company, management company or subcontractor, which is precisely dedicated to the provision of different specialized services. For this, the latter can only hire the staff, in which case the resources will be provided by the client (facilities, hardware and software), or hire both the staff and the resources. For example, a company dedicated to demolitions can subcontract a company dedicated to the disposal of waste for the task of getting rid of the debris from demolished units, or a company that transports goods can subcontract a company specialized in the identification or packing
Please forgive me if I’m wrong
I think it would be a.true
Answer:
a. Calculate the balance in retained earnings at the time of the change (beginning of 2017) as it would have been reported had FIFO been previously used.
b. Prepare the journal entry to record the change in accounting principle at the beginning of 2017.
- Dr Inventory 80,000
- Cr Income taxes payable 16,800
- Cr Retained earnings 63,200
Explanation:
inventory under FIFO would have been $80,000 higher, that means that COGS were overstated by $80,000 and net earnings were understated by $80,000.
retained earnings 2016 = $1,750,000
tax rate 21%
Dr Inventory 80,000
Income taxes payable 16,800
Retained earnings 63,200
Retained earnings = $1,750,000 + $63,200 = $1,813,200
When companies change from LIFO to FIFO, they must adjust their income statement and balance sheet in a prospective way because it will affect the future value of their accounts. But when a company changes from FIFO to LIFO, no adjustment is required.
Answer:
133.33%
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Total overhead cost ÷ direct labor cost
where,
Total overhead cost is $200,000
And, the direct labor cost is $150,000
Now placing these values to the above formula
So, the predetermined overhead rate is
= $200,000 ÷ $150,000
= 1.33%
We simply applied the above formula