Complete question:
Compton Corporation, with operations throughout the country, will soon allocate corporate overhead to the firm's various responsibility centers. Which of the following is definitely not a cost object in this situation?
A) The maintenance department.
B) Product no. 675.
C) Compton Corporation.
D) The Midwest division.
E) The telemarketing center.
Answer:
Compton Corporation is definitely not a cost object in this situation
Explanation:
A cost object is a concept commonly used in financial reporting to describe the costs. Definitions commonly found in expense items include: product lines, geographical areas, clients, teams or anything else handling the costs.
Any object to which costs are independently calculated is a cost entity. In an organization, an expense item can be, for example a team, workmanship, production line or procedure.
For example, the costs of construction, customer support or revamping of a returned product may be tracked.
Answer:
New price = $108
Explanation:
Given:
Old price for cleaning = $120
New discount rate = 10% = 10 / 100 = 0.1
Computation of new price for cleaning:
New price = Old price for cleaning (1-New discount rate)
New price = 120 (1-0.1)
New price = 120 (1-0.1)
New price = $108
Journal entry
Date Account Title and Explanation Debit Credit
Cash A/c Dr. $108
Service Revenue A/c $108
(Being amount received from cleaning)
Answer:
The correct word for the blank space is: fixed-price contract.
Explanation:
Fixed-price contracts are those in which a fixed amount is set at the beginning of the work that will be done. The advantage and disadvantages of this type of contract depend on market fluctuations. If the prices of the materials used for the work drop, for instance, the individual performing the work will be at advantage. If the prices rise, instead, that individual would be at a disadvantage.
The <em>fixed-price contrac</em>t opposes the <em>cost-plus contract </em>since the latter reports the expenditures incurred and price to be charged at the end of the work.
Answer:
a. an excess cash balance of $90,000
Explanation:
The cash at end of July = Cash of $55,000 at end of June + cash receipts of $70,000 - cash disbursements of $10,000 = $115,000
Cash excess = Actual cash ending - minimum cash balance required = $115,000 - $25,000 = $90,000
Answer:
Examples of bad faith include undue delay in handling claims, inadequate investigation, refusal to defend a lawsuit, threats against an insured, refusing to make a reasonable settlement offer, or making unreasonable interpretations of an insurance policy.
Explanation: