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3 years ago

Activity-based costing strives to create an environment that

Business

1 answer:

tankabanditka [31]3 years ago

4 0

Answer:

D. encourages process-value analysis.

Explanation:

Activity based costing aims to allocate cost of different processes and activities to the department which utilizes the cost at maximum, on the basis of actual cost drivers.

Every activity has a cost driver, as for example for the expense or activity of rent is based on area allocated to each department thus cost driver here is area of the department.

Therefore, Activity based Costing encourages the process value analysis, which process is best.

It states which process added how much value to each product or department, it is a kind of process analysis.

Thus, correct option is D

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In 2014, short-term interest rates were near zero, and yet the economy was still sluggish with low rates of economic growth and

LUCKY_DIMON [66]

I don’t even know to be honest only commenting to get some points ....:

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3 years ago

A _____ occurs when a company's management decides to add products to an existing product line in order to compete more broadly

Harman [31]

C. Product line extension.

7 0

3 years ago

Sankey Co. has earnings per share of $3.95. The benchmark PE is 18.8 times. What stock price would you consider appropriate

trapecia [35]

Answer:

Stock price = $74.26

Explanation:

<em>The value of a share can be determined using the price earning ratio model. According to this model, the price of a share is estimated as the EPS of the company multiplied by a representative (benchmark) price- earning (P/E) ratio</em> .

The ratio relates the price of a stock to its earning. A stock with a higher P/R indicates a high potent for growth.

Price of stock =Earnings per share( EPS) × benchmark P/E ratio

The appropriate comparative price earnings ratio in the question has been given as 18.8 times.

DATA-

EPS- 3.95

PE- 18.8

Stock price = 3.95 × 18.8= $74.26

Stock price = $74.26

7 0

3 years ago

The balance sheet of Flo's Restaurant showed total assets of $320,000, liabilities of $88,000 and stockholders’ equity of $282,0

SashulF [63]

Answer:

The answer is $148,000

Explanation:

Goodwill comes into effect or arises when a company acquires another company. Goodwill is an intangible asset. It is difference between the purchase price of a company and the net asset(total assets minus total liability)

Purchase price is $425,000

Fair value of the asset is $365,000

Total liability is $88,000.

Net asset = $365,000 - $88,000

=$277,000

Therefore, goodwill is $425,000 - $277,000

= $148,000

3 0

3 years ago

Wolverine Corporation plans to pay $3 dividend per share on each of its 300,000 shares next year. Wolverine anticipates earnings

lesantik [10]

Answer:

new equity $ 1,425,000

new debt $ 950,000

Explanation:

retained earnings

300,000 x (6.25 - 3) = 975.000

If debt is 0.4 of assets then by deifinition:

assets = liab+ equity

1 = 4 + equity

equity = 0.6 (60%)

<u>Retained Earnings breakpoint</u>

975,000 / 0.6 = 1,625,000‬

The company can riase capital expenditured for 1,625,000 and mantaining his capital structure.

As the company need 4,000,000 it will need to raise more capital as it surpass the retained earnings breakpoint.

4,000,000 - 1,625,000 = 2,375,000

2,375,000 x 0.6 = 1,425,000 new equity

2,375,000 x 0.4 = 950,000 new debt

4 0

3 years ago