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rusak2 [61]
3 years ago
15

Kinnamont Company manufactures farming equipment that includes navigational systems as part of the standard equipment package an

d offers optional training on any navigational systems for an additional fee. Smith Company enters into a contract with Kinnamont that includes a combine, a navigational system, and training. Identify the performance obligations to which Smith should allocate the transaction price:A. The combine, the navigational system, and the training as three separate performance obligations.
B. The combine including the navigational system and the training as two separate performance obligations.
C. The combine, the navigational system, and the training account for one performance obligation because they are all part of the same contract.
D. No performance obligations exist because the work on the contract, including the training, has not begun.
Business
1 answer:
mario62 [17]3 years ago
4 0

<u>Answer:</u> Option B

<u>Explanation:</u>

The contract between Kinnamont and Smith covers two obligations that needs to be performed one is to provide a navigational system and other is training. Both the obligations needs to be provided together as a combine. The accounting for the contract which has multiple performance obligations should allocate transaction pricing separately for each obligation that needs to be performed.

So the transaction pricing in this scenario has to be allocated for navigational system and training separately. The price is not split between the obligations but the price has to be measured based on the work done.

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Answer:

Production Budget

Explanation:

Production Budget is usually substituted <em>with</em> Purchasing budget for a retail company.

The operating budget usually consist of the:

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However, for a retail company that usually do not produce their products or inventory but purchase them, the Production Budget is usually substituted <em>with</em> Purchasing budget or merchandise inventory to be purchased; meaning since they do not have raw materials they<em> substitute </em>the number of units to be purchased, to the number of units to be produced.

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3 years ago
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Papessa [141]

Answer: (D) Strategic planning

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The main objective of the strategic planning is that it helps in establishing the the actual direction to the companies for the long term goals and also helps in making various types of decisions.

According to the given question, the strategic planning is one of the type of action which is specifically taken by an organization that helps the growth o the company.  

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4 0
2 years ago
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Answer:

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or

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In a capitalist society, everyone is responsible for generating their own wealth. Contrarily, in communism, wealth is dispersed in accordance with needs and capacity. While there is intense competition between businesses in capitalism, this is not the case in communism, because the government controls the market. While capitalism exists in western nations, socialism is more prevalent in eastern nations.

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