Answer:
Purchasing insurance can help Adrian minimize risk. Adrian’s best decision in this case is to not buy the insurance
because the policy is
too expensive in relation to the value of his vehicle
Answer:
712 Units
Explanation:
Given
Order Quantity = 4800 units
Safety Stock = 112 units
Since Hasty Manufacturing make orders 4 times in a year, then Safety Stock = 4 * 112 = 448
Average inventory = ½(Order Quantity) + Safety Stock
Average inventory = ½ * 4800 + 448
Average Inventory = 2400 + 448
Average Inventory = 2848 for 4 Orders per annum
Also, they make order 4 times a year.
So, the Average Inventory per order = 2848/4
So, Average Inventory = 712
Answer: Debit: Litigation expense $300,000
Credit: Litigation liability $300,000
Explanation:
Loss contingency is typically a charge to expense for a future occurence in this case, a lawsuit. A loss contingency simply makes the economic entity to be aware at an early stage of the loss and its likely financial implication.
The entries that Buchanan should record to recognize this loss contingency will be to:
Debit: Litigation expense $300,000
Credit: Litigation liability $300,000
Answer:
The answer is b. job order and process cost systems.
Explanation:
There are two main cost accounting systems; the job order costing and the process costing. Job order costing is a cost accounting system that accumulates manufacturing costs separately for each job whereas Process costing is a cost accounting system that accumulates manufacturing costs separately for each process.
