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2 years ago

Which of the following statements regarding service companies is true?

Business

2 answers:

Kitty [74]2 years ago

7 0

Answer:D. A service company's variable costing income statement includes contribution margin

Explanation:

A variable costing income statement is used to arrive at the contribution margin which is the difference between total sales and total variable costs. The fixed cost is deducted from the contribution to arrive at the net profit or loss

VladimirAG [237]2 years ago

5 0

Answer:

d. A service company's variable costing income statement includes contribution margin.

Explanation:

Variable costing can be defined as the costing that is obtained from variable manufacturing cost which includes the cost of direct labour, direct materials and the cost of manufacturing overhead of the product. Another name for variable cost is Direct cost.

Variable costing helps us to know what the price of a product would be. It can also tell us if we should continue producing that product or not. Variable costing helps us to control the cost of manufacturing a product.

A service company's variable costing income statement includes contribution margin. Contribution margin helps the services company to be able to pay for their variable cost using the revenue generated by the company. It is calculated as Selling price - Variable cost.

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What is protectionism and why would a country base trade policy on it? Explain at least two reasons.

Anton [14]

Protectionism is a government or economic policy that does not allow foreign or international trade through methods and variety of government regulations outlined to promote fair competition with the goods and services made domestically. Business and workers were protected within a country through regulating or obstructing trade with different countries.

A country should base trade policy for two reasons. 1.) It protects local businesses and jobs. 2.) It promotes fair competition on the local goods and services.

3 0

2 years ago

The dollars available from each unit of sales to cover fixe

lbvjy [14]

Answer:

False

Explanation:

Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.

The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.

5 0

2 years ago

If nominal wages fall which of the following will occur in the short run? The SRAS curve will shift to the right The SRAS curve

bixtya [17]

Answer:

The SRAS curve will shift to the right.

Explanation:

A decline in nominal wages will reduce the cost of hiring labor. The overall cost of production will reduce as well. The firms will be able to increase production and investment.

This increase in production and investment will increase the aggregate supply. As a result, the short-run aggregate supply curve will move to the right. This will cause the equilibrium price to fall and the equilibrium quantity to increase.

7 0

2 years ago

The June 30, 2021, year-end trial balance for Askew company contained the following information: Account Debit Credit Inventory,

user100 [1]

The cost of goods sold for the Askew Company for the year ending June 30, 2021 is $233,000.

Using this formula

Cost of goods sold=Beginning Inventory+ Net purchases- Ending Inventory

Where:

Beginning Inventory=$32,000

Net purchases=($240,000-$6,000-$10,000+$17,000)=$241,000

Ending Inventory=$40,000

Let plug in the formula

Cost of goods sold=$32,000+$241,000-$40,000

Cost of goods sold=$233,000

Inconclusion the cost of goods sold for the Askew Company for the year ending June 30, 2021 is $233,000.

Learn more here:

brainly.com/question/15708509

4 0

1 year ago

Condensed financial data of Windsor, Inc. follow. Windsor, Inc. Comparative Balance Sheets December 31 Assets 2022 2021 Cash $56

Solnce55 [7]

Answer:

Windsor, Inc.

Statement of Cash Flows

December 31, 2022

Cash flow from operating activities

Net income $108,206

Adjustments to net income $19,005

Depreciation expense $32,550
Loss on disposal of assets $5,250
Increase in prepaid expenses ($1,680)
Increase in accounts payable $24,290
Increase in accounts receivable ($34,860)
Increase in inventory ($6,755)
Decrease in accrued expenses payable ($3,150)

Total cash flow from operating activities $123,851

Cash flow from investing activities

Increase in long term investments ($20,300)

Purchase in new plant assets ($70,000)

Proceeds from disposal of assets $1,050

Total cash flow from investing activities ($89,250)

Cash flow from financing activities

Issuance of common stocks $31,500

Payment of bonds payable ($25,200)

Dividends paid ($18,221)

Total cash flow from financing activities ($11,921)

Total increase in cash $22,680

Cash balance December 31, 2021 $33,880

Cash balance December 31, 2022 $56,560

Explanation:

2022 2021

Cash $56,560 $33,880 +22,680

Accounts receivable 61,460 26,600 +34,860

Inventory 78,750 71,995 +6,755

Prepaid expenses 19,880 18,200 +1,680

Long-term investments 96,600 76,300 +20,300

Plant assets 199,500 169,750 +29,750

Accumulated depreciation (35,000) (36,400) -1,400

Total $477,750 $360,325

Liabilities and Stockholders' Equity

Accounts payable $71,400 47,110 +24,290

Accrued expenses payable 11,550 14,700 -3,150

Bonds payable 77,000 102,200 -25,200

Common stock 154,000 122,500 +31,500

Retained earnings 163,800 73,815 +89,985

Total $477,750 $360,325

Depreciation expense 32,550

Interest expense 3,311

Loss on disposal of plant assets 5,250

Net income $108,206

cash dividend of $18,221

4 0

2 years ago