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2 years ago

Why is this zero based budget the best method of budgeting?

2 answers:

5 0

It helps you save a lot of money, if you are on zero budget you wont be as willing to spend money on non sense rather than if you were to have say a weekly budget to where you know how much money you can spend on non sense. hope that makes sense.

kherson [118]2 years ago

3 0

<u>Zero based budget the best method of budgeting - Reason:</u>

Zero-based budgeting (ZBB) is a budgeting method where all expenses of each new phase have to be justified. The zero-based budgeting process beginning at zero bases and each component is examined for its requirements and expenses within an organization.

Zero-based budgeting can help to reduce costs by preventing massive increases or reduced to expenditure for the subsequent period. But this has taken far more time than conventional cost-based budgeting. It’s a time-consuming process.

It is also a case of actual revenue because their contributions are easier to justify than in customer services and R&D departments.

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Lucky lou has just won the lottery and will receive an annual payment of $100,000 every year for the next 20 years. if the annua

olga nikolaevna [1]

PV = A*[1-(1+r)^-n]/r

A = annual payment = $100,000
r = Interest rate = 8% = 0.08
n = Number of year = 20
PV = present value of the earnings

Therefore,
PV = 100,000*[1-(1+0.08)^-20]/0.08 = $981,814.74

4 0

3 years ago

Eisler Corporation issued 2,000 $1,000 bonds at 101. Each bond was issued with one detachable stock warrant. After issuance, the

ivann1987 [24]

Answer:

The journal entry is as follows:

Cash A/c Dr. $2,020,000

Discount on bonds payable A/c Dr. $59,216

To Bonds payable $2,000,000

To Paid in capital - stock warrants $79,216

(To record the issuance of the bonds and warrants)

Workings:

Cash:

= 2,000 × $1,000 × 101%

= $2,020,000

Discount on bonds payable:

= 2,000,000 - 2,020,000 × (980 ÷ 1,020)

= $59,216

3 0

3 years ago

"An individual owns a bicycle repair business as a sole proprietorship. He does not make a lot of money, but he does have $5,000

ICE Princess25 [194]

Answer:

Roth IRA

Explanation:

Based on the information provided in this scenario it can be said that the individual's best option would be to make a $5,000 contribution to a Roth IRA fund. This is a retirement fund that can be will provide will continue to grow exponentially throughout the years and the individual can withdraw that money when they turn 60 years old. At this point the money is completely tax free.

5 0

2 years ago

Beverly works at a specialty kitchen store. The manufacturer of a brand of gourmet mustard that is sold through her store pays h

Leto [7]

Answer: A spiff

Explanation:

Spiff is actually a form of slang to refer to someone who receives an incentive for selling an item to customers on behalf of a vendor. This motivates the seller to push the vendor's items (sell them) onto its (seller's) customers. The incentive usually comes in the form of a bonus and is paid out immediately.

In this question the gourmet mustard manufacturer is the vendor, and Beverly is the seller. Beverly receives $1 for every jar of mustard she sells, which is the bonus. This motivates her to keep selling these jars on behalf of the manufacturer (vendor). This payment is immediate, as she receives it everytime she sells a jar of mustard.

5 0

2 years ago

Goods X and Y are perfect substitutes. When the market price of good X is $5/unit, firm F produces 500 units of X. When the pri

goldenfox [79]

Answer:

According to this situation, we assume that firm F is the only producer of product X.

Explanation:

A perfect replacement is a condition in which two items are considered equal. Great replacements are goods and you can't build a brand whereby consumers like the commodity.

Except for a market price, optimal substitution suppliers must have no impact on the quality.

Therefore, in this situation product Y's price rises, so people shift for product X.

In results, firm F had to increase his supply which shows that firm F is the only producer of product X in the industry.

3 0

2 years ago