Answer:
A is the correct answer
Explanation:
Most small businesses use a simple organizational structure. In this, decision making is centralized with the owner. It doesn't have any formal departments and layers. There are both advantages and disadvantages of running the company with this structure. It enables the owner to keep tight control over the company's operation. No decisions can be made without the owner's approval and the owners of aware of every decision made. These companies make decisions quickly as there are no layers of management where the request needs to climb before approval.
Answer:
transfer price 3.31
Explanation:
the minimun transfer price should be equal to the marginal cost:
In this case: variable manufacturing cost + shipping cost.
variable cost 3.1
shipping cos 0.21
marginal price 3.31 = cost of produce an additional unit = transfer price
there is no additional fixed cost so this should be the transfer price.
Answer:
D) $18,334
Explanation:
The computation of the long term debt is shown below:
Long term debt = Total assets - current liabilities - stockholder equity
where,
Total assets = Cash + inventory + account receivable + net fixed assets + other assets
= $1,234 + $13,480+ $7,789 + $42,331 + $1,822
= $66,656
Current liabilities = Account payable + notes payable
= $9,558 + $2,756
= $12,314
The stockholder equity is
= Common stock + retained earnings
= $22,000 + $14,008
= $36,008
So, the long term debt is
= $66,656 - $12,314 - $36,008
= $18,334
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
1)
A) Absorption costing captures all product costs (direct labor, direct material, manufacturing overhead) to each unit of a product produced during the period. It includes variable and fixed cost.
Absorption cost= Direct material used + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
B) Income statement:
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=EBITDA
Depreciation & Amortization Expense (-)
=Operating Income or EBIT
Interest (-)
Other Expenses (-)
=EBT (Pre-Tax Income)
Income Taxes (-)
=Net Income
2)
A) Variable costing= Direct material used + Direct labor + Variable manufacturing overhead + variable selling and administrative
B) Income statement
Sales
Cost of good sold (-)
Contribution margin
Fixed costs (-)
Depreciation expense (-)
Interest (-)
Net operating profit
Tax (-)
Net profit
Answer: Generally Accepted Accounting Principles
Explanation:
Just finished the test
