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2 years ago

In order to assure better management acceptance, the flow of input data for budgeting should begin with the

1 answer:

3 0

The flow of input data for budgeting should begin with the lower levels of management in order to assure better management acceptance. Lower level management is otherwise known as supervisory or operative level of management. This level consists of supervisors, superintendents, or foremen.

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The demand for one of X Company’s products has declined in recent years. The product is manufactured using designated equipment

Scrat [10]

Answer: $230,000

Explanation:

In our case,

Undiscounted future cash inflows from the sale of the product = $ 600,000 and

Carrying value of the asset = $ 720,000.

We can come to a conclusion that the benefit we get from the sale of the asset is less that carrying value.

Hence, the asset is said to be impaired.

Therefore,

Impairment Loss = Carrying value - Fair value of the asset

= 720,000 - 490,000

= $230,000.

6 0

2 years ago

Which of the following is true? AChecks and Debit Cards both withdraw money directly from a bank account. BDebit Cards often hav

Tems11 [23]

A.Checks and Debit Cards both withdraw money directly from a bank account.

3 0

3 years ago

A computer company's yearly inventory cost is 40 percent (which accounts for the cost of capital for financing the inventory, wa

aksik [14]

Inventory Costs plays a major role in ascertaining working capital requirements as well structuring cash flow statement.

Explanation:

In the given example,

inventory cost 40 percent

Inventory Value $400 million

Ratio of inventory cos ts to inventory value = Inventory Cost / Inventory Value .

so in the current case it will be 40% x/$400 million

Hence, Inventory Cost 160 Million

Since the cost is fairly on a higher side at 40$ it should try to reduce it which will help in improving its bottom-line.

Company should focus on offering on discounts and promotions and reduce Obsolete Stock.

It should work on restructuring and organizing warehouse costs by prioritizing inventory based on their movements.

The procurement team should order in minimum quantities and benchmark reorder point.

3 0

2 years ago

Which of the following statements are true concerning the predetermined overhead rate when the direct labor-hour requirement for

In-s [12.5K]

Answer: The predetermined overhead rate increased because the total direct labor-hours dropped

Explanation:

The predetermined overhead rate refers to an allocation rate which is used in applying the estimated manufacturing overhead cost to the cost objects for a particular reporting period.

When there's reduction in the direct labor-hour requirement from 5 hours to 2 hours, the predetermined overhead rate increased because the total direct labor-hours dropped

The predetermined overhead rate is calculated as the total overhead cost divided by the machine hour. Therefore, if there's reduction in the direct labor hour rate, then there will be a rise in the predetermined overhead rate.

6 0

2 years ago

On January 1, Year 1, Greenfield, Inc. issues $100,000 of 9% bonds maturing in 10 years when the market rate of interest is 8%.

ELEN [110]

Answer:

When using a financial calculator to compute the issue price of the bonds, the applicable periodic interest rate ("I") is 3.923%

Explanation:

Hi, first, the discount interest rate that you have to choose is 8%, because 9% is the coupon rate (which in our case would be 9%/2=4.5% and this is used only to find the amount to be paid semi-annually).

Now we know we have to choose 8%, but this is an effective rate (I know this is an effective rate because no units were mentioned), and by definition it is a periodic rate, but it is not the rate that we need since the payments are going to be made in a semi-annual way, therefore we need to use the following equation.

$r(semi-annual)=[1+r(annual)]^{\frac{1}{2} } -1$

So, everything should look like this.

$r(semi-annual)=[1+0.08]^{\frac{1}{2} } -1=0.03923$

Therefore, the periodic interest that yuo have to use to calculate the price of the bond is 3.923%

Best of luck.

8 0

3 years ago