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3 years ago

Which of the following statements is incorrect when allocating service department costs to operating departments?

Business

1 answer:

Whitepunk [10]3 years ago

6 0

Option C is incorrect when allocating service department costs to operating departments.

Explanation:

Typically, fixed costs are not assigned to working departments; however, they have to be absorbed by the service. This statement is incorrect in the service dept. Cost to Operating dept.

The reciprocal method assigns the cost of services to operating departments and other departments. The reciprocal costs are identified and the costs are assigned to each other and to services offered by each service department.

For example, if Service Department A requires certain services of Service Department B, the cost allocation system would not include these services. Since these services are not delegated to other departments, some auditors assume that the direct approach is not right.

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Use the following cash flow data of Haven Hardware for the year ended December 31, 2015. Cash Dividends $70,000 Purchase of Land

andrew11 [14]

Answer:

cash used for investing activites -12,000

Explanation:

proceed from equipment 76,000

Land acquisition -28,000

disbursement on equipment -60,000

cash used for investing activites -12,000

The dividends and stock transaction are part of the financing activites.

The proceed from sales and payment to providor are operating activities

So both of this should be ignore if we are asked for the investing activities.

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3 years ago

Wozniacki and Wilcox form Jewel LLC, with each receiving a one-half interest in the capital and profits of the LLC. Wozniacki re

timofeeve [1]

Answer:

Recognize the $50,000 as a compensation income received.

Explanation:

The reason is that the Compensation of $50,000 that Wozniacki received for the services that he previously used to render which means this whole amount received must be recognized as income.

8 0

3 years ago

A certain town in the Midwest obtains all of its electricity from one company, North-star Electric. Although the company is a mo

Jlenok [28]

Answer:

False

Explanation:

Therefore, since the monopoly price is higher than marginal cost and also less than the competitive quantity is produced, there will be a deadweight loss even if all the profits are given back to the citizens.

A monopolist market qualities includes the charge of a higher price, produces a smaller quantity of output and gives or generate a dead weight loss to society. Usually for a monopoly to be achieved, price does not need to equal marginal cost. Monopolies is therefore not or cannot charge any price they want. .

4 0

3 years ago

(tco 3) techpoint, a technical writing and business documentation firm, finds it difficult to handle its training requirements.

kotykmax [81]

This is an example of "outsourcing".

Outsourcing is the business routine with regards to procuring a gathering outside an organization to perform benefits and make products that generally were performed in-house by the organization's own representatives and staff. Generally done as a cost-cutting measure, it can influence occupations going from client support to assembling to the back office.

Outsourcing can enable organizations to lessen work costs essentially by outsourcing certain assignments. Organizations can likewise dodge costs related with overhead, gear and innovation.

4 0

4 years ago

Break-Even Sales

Licemer1 [7]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Currently, the unit selling price of a product is $125, the unit variable cost is $105, and the total fixed costs are $460,000. A proposal is being evaluated to increase the unit selling price to $130.

Break-even point= fixed costs/ contribution margin

A) Break-even point= 460,000/(125-105)= 23,000 units

B) Break-even point= 460,000/ (130 - 105)= 18,400 units

3 0

3 years ago