Compounding. If you compound your interest, then your interest rate will go up, and you get more interest.
Answer:
d. Using the chained CPI will not have a notable impact on 2019 tax returns.
Explanation:
when amounts are indexed using the chanined consumer price index, they increase slowly because there is a period to period connection in the consumer price index.
Therefore, The use of the chained consumer price index would have not have any significant impact on 2019 tax returns.
Available Options:
a) The budget helps motivate employees to achieve sales growth and cost-reduction goals.
b) The budget provides managers with a benchmark against which to compare actual results for performance evaluation.
c) The planning required to develop the budget helps managers foresee and avoid potential problems before they occur.
d) All of the above.
Answer:
Option D. All of the above.
Explanation:
The reason is that when budgets are set every personnel in the organization is given a task along with the restriction on the use of excessive resources of the company by generating a standard number of output, which is benefitial to the company and the managers as well.
Furthermore, standard costs are used in budgeting to estimate the costs of the operations of the company which means that the standard cost would be used for actual units to compare the actual results to make meaningful conclusions.
At the end, the main benefit of the budgeting is that it highlights the potential issues in the operating systems of the organization which must be corrected to avoid the same advers outcome in the future.
So all of the statements are correct.
Question Completion:
Describe the accounting treatment of Supplies Expenses.
Answer:
Supplies Expenses are debited while the Supplies account is credited with the supplies expenses.
Explanation:
This accounting treatment of Supplies Expenses reduces the balance of the Supplies account by the amount of supplies used during the period. Thus, what is left in the Supplies account is the cost of the unused supplies at the end of the accounting period. The treatment also accords with the accrual concept, which requires that expenses are matched to the revenues that they generate in the period.
Answer:
b. False
Explanation:
The difference between absorption costing net operating income and variable costing net operating income lies in the <em>fixed costs deferred in closing inventory</em>.
If Production is greater than Sales - <u>Increase in Finished Goods Inventory</u>, Absorption costing net operating income will typically be greater than Variable costing net operating income.
However, If Production is less than Sales - <u>Decrease in Finished Goods Inventory</u>, Absorption costing net operating income will typically be less than Variable costing net operating income.
