Answer:
c. 10%
Explanation:
Margin of safety is the sales value at which the business is safe from making loss. It measures the profit after the break-even point. The sales over the break-even point is considered as the margin of safety.
Margin of safety = Actual Sales - Break-even point = 12,500 units - 11,250 units = 1250 units
Percentage of margin of safety to sales = Margin of safety / Actual sales
Percentage of margin of safety to sales = 1,250 / 12,500
Percentage of margin of safety to sales = 0.10
Percentage of margin of safety to sales = 10%
Answer:
C). Compare actual controllable costs with flexible budget data.
Explanation:
The Cost center is very crucial to be determined by an organization as it indirectly bestows its profitability. It is usually calculated by comparing the actual cost generated by the department to the expectations as per the budgeted cost. Thus, the most constructive method to evaluate a cost center would be the 'comparison between the actual controllable costs and the flexible budget data' as it helps in assessing the actual expense incurred during the year and whether it is lesser or greater than the cost estimated in the budget. Hence, <u>option C</u> is the correct answer.
Answer:
A po
Explanation:
no explanation..............
Solution:
Sales Price $115,000 - BV $80,000 = $35,000
Gain on Sale /8 years = $4,375
Annual Amortisation of Unrealised Gain over Expected Useful Life of the Asset
Parent's Depreciation $84,000 + Sub's Depreciation $60,000 - Annual amortisation $4,375 = $139,625
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