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4 years ago

Select the incorrect statement concerning the application of the controllability concept to responsibility accounting.

Business

1 answer:

motikmotik4 years ago

5 0

Answer:

Each manager should be evaluated on the costs but not the revenues that are under his or her control.

Explanation:

Controllability refers to the amount of influence that a manager has over costs or revenues. In responsibility accounting, only those elements are identified which are controllable. A person is given the responsibility for managing such kind of elements.

A person is given an authority to control the costs so that they are able to keep up their performance.

However, according to the controllability concept to responsibility accounting,

each manager should also be evaluated on the revenues that are under his or her control.

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Negative externalities that arise from the production of a gooda. cause an increase in the demand for the goodb. cause a decreas

Dennis_Churaev [7]

Answer:

The correct answer is option c.

Explanation:

Externalities refers to the situation in which costs or benefits arising from the activities of someone are incurred or received by the some other third party.

Externalities can be classified into two types, namely, positive and negative.

In case of negative externalities the cost arising from the activities of some person are incurred by a third party.

Negative externalities lead to market failure.

6 0

3 years ago

Recognizing marketing greater purpose is one of the four overriding principles of:________

gtnhenbr [62]

One of the four guiding principles of is to recognize the bigger goal of marketing. It looks at moral standards and guidelines in a business setting.

Making a living or earning money through the production, acquisition, and sale of items is referred to as business (such as goods and services). Furthermore, it refers to "any activity or enterprise undertaken for profit."

The owner of the business is responsible and liable for any debts incurred by the business since despite having a business name, they are one and the same. If the company accrues debts, the creditors may seize the owner's personal property. Corporate tax rates cannot be applied to a firm structure. All profits earned by the business are subject to personal taxation by the owner.

To know more about business

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#SPJ4

6 0

2 years ago

On January 1, 2018, Pine Company owns 40 percent (124,000 shares) of Seacrest, Inc., which it purchased several years ago for $7

elixir [45]

Answer:

A. Equity income $278,756

B. Other Comprehensive Loss ($136,400)

C. Gain on sale $37,177

Explanation:

Calculation to determine what income effects would be reported from its ownership in Seacrest

A. Calculation to determine the Equity Income In Seacrest, Inc.

EQUITY INCOME In Seacrest, Inc.

Investee income accrual—operations $310,200

$846,000 × 40% × 7/12 year $197,400

$846,000 × 32% × 5/12 year $112,800

Amortization ($34,100)

($21,700+$12,400)

$37,200 × 7/12 year $21,700

After 20 percent of stock is sold $12,400

[ (24,800 ÷ 124,000 shares): $37,200 × 80% × 5/12 year]

Recognition of unrealized gross profit

Remaining inventory—12/31/17

$16,600

Gross profit percentage on original 40%

sale($($54,000-$32,400) ÷ $54,000)

Gross profit remaining in inventory $6,640

($16,600*40%)

Ownership percentage 40%

Intra-entity gross profit recognized in 2018 $2,656

(40%*$6,640)

Equity income in Seacrest, Inc $278,756

($310,200-$34,100+$2,656)

B. Calculation to determine Other comprehensive loss—Seacrest, Inc.

OTHER COMPREHENSIVE LOSS—Seacrest, Inc.

1/1/18 to 8/1/18 ($372,000 × 40% × 7/12 year) $86,800

8/1/18 to 12/31/18 ($372,000 × 32% × 5/12 year) $49,600

Other Comprehensive Loss—Seacrest, Inc ($136,400)

($86,800+$49,600)

C. Calculation to determine Gain on Sale of Investment in Seacrest, Inc.

GAIN ON SALE OF INVESTMENT in Seacrest, Inc.

Book value—investment in Seacrest, Inc.—1/1/18

$905,200

Investee income accrual—1/1/18 – 8/1/18 $197,400

Investee other comprehensive loss 1/1/18 – 8/1/18 ($86,800)

Amortization—1/1/18 – 8/1/18 ($21,700)

Recognition of deferred profit $2,656

Investment in Seacrest book value 8/1/18 $996,756

(905,200+197,400-$86,800-$21,700+$2,656)

Percentage of investment sold 20%

(24,800 ÷ 124,000 shares)

Book value of shares being sold $199,351

(20%*996,756)

Proceeds from sale of shares $236,528

Gain on sale of 24,800 shares of Seacrest $37,177

($236,528-$199,351)

Therefore On Pine's financial statements for the year ended December 31, 2018 the income effects that would be reported from its ownership in Seacrest are:

A. Equity income $278,756

B. Other Comprehensive Loss ($136,400)

C. Gain on sale $37,177

8 0

3 years ago

You want to re-engage with people from your CRM database that bought something from your website in the past six months. Which a

kirill115 [55]

Answer:

Answer is Option A: Affinity

Explanation:

If one wants to search for the audience that aligns with their product, one must choose the affinity method. With this method, large amount of data can be gathered and organised into groups based on the criteria. It picks people's preferences based on online browsing and then organizes them based on their interests. Similar interests people will be grouped together and they are presented the data they are interested in. This method is also called “Space Saturate and Group”.

So, if one wants to re-engage with people from the database who bought something from the website in the past 6 months, affinity method will be used.

7 0

3 years ago

Carter's preferred stock pays a dividend of $1.40 per quarter. If the price of the stock is $69.00, what is its nominal (not eff

anygoal [31]

Answer:

Carter's preferred stock nominal annual expected rate of return is 8.12%.

Explanation:

Nominal annual expected rate of return of a preferred stock can be described as the current or unadjusted rate of return of the stock.

The nominal annual expected rate of return can be calculated as follows:

Nominal annual expected rate of return = Annual preferred stock dividend per share / Preferred stock price ............. (1)

Where;

Annual preferred stock dividend per share = Dividend per quarter * 4 = $1.40 * 4 = $5.60

Preferred stock price = $69.00

Substituting the values into equation (1), we have:

Nominal annual expected rate of return = $5.60 / $69.00 = 0.0812, or 8.12%

Therefore, Carter's preferred stock nominal annual expected rate of return is 8.12%.

3 0

3 years ago