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3 years ago

The concept of materiality:

Business

2 answers:

KonstantinChe [14]3 years ago

6 0

Answer:

The answer is b Justifies ignoring the matching principle in certain circumstances.

Explanation:

Doss [256]3 years ago

5 0

Answer:

The correct answer is letter "B": Justifies ignoring the matching principle in certain circumstances.

Explanation:

In Accounting, the materiality principle is in charge of the relevance of information and the size of the information recorded in the companies' books. According to this concept, there are some Generally Accepted Accounting Principles (GAAP) that can be omitted as long as the information transferred to the Financial Statements are not affected.

It is the responsibility of the accountant to determine what should and should not be included on the firm's general ledger, then. GAAP such as matching can be omitted thanks to the materiality principle.

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Cotton White, Inc., makes specialty clothing for chefs. The company reported the following costs for 2018: Factory rent $ 42,000

Doss [256]

Answer:

Results are below.

Explanation:

1) Direct materials are those materials and supplies that are consumed during the manufacture of a product, and which are directly identified with that product.

Direct material= Thread + Premium quality cotton material + Buttons

Direct material= 1,000 + 42,000 + 750

Direct material= $43,750

2) Direct labor is production or service labor that is assigned to a specific product, cost center, or work order. 

Direct labor= Wages paid to seamstresses + Wages paid to cutters Direct labor= 75,000 + 50,000

Direct labor= $125,000

3) Manufacturing overhead refers to indirect factory-related costs that are incurred when a product is manufactured.

Manufacturing overhead= Factory rent + Utilities for factory + Cutting room supervisor's salary + Factory insurance + Depreciation on sewing machines

Manufacturing overhead= 42,000 + 22,000 + 30,000 + 15,000 + 6,000

Manufacturing overhead= $115,000

4) Total manufacturing costs= 43,750 + 125,000 + 115,000

Total manufacturing costs= $283,750

5) Prime cost= direct material + direct labor

Prime cost= 43,750 + 125,000

Prime cost= $168,750

6) Conversion cost= direct labor + MOH

Conversion cost= 125,000 + 115,000

Conversion cost= $240,000

7) Period costs are not directly tied to the production process. Overhead or sales, general, and administrative (SG&A) costs are considered period costs. SG&A includes costs of the corporate office, selling, marketing, and the overall administration of company business.

Period costs= Company advertising + Depreciation on salespersons' vehicles + President's salary

Period costs= 18,000 + 25,000 + 75,000

Period costs= $118,000

8 0

3 years ago

A large bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a

Nostrana [21]

Answer and Explanation:

The computation is shown below

a. The economic order quantity is

= sqrt ((2 × annual demand × ordering cost) ÷ carrying cost)

= sqrt ((2 × 1,215 × $10) ÷ $75)

= 18 units

b) Average number of bags on hand is

= EOQ ÷ 2

= 18 ÷ 2

= 9

c) Orders per year is

= D ÷ EOQ

= 1215 ÷ 18

= 67.5

= 68

d) Total cost = Total carrying cost+ Total ordering cost

= (Q ÷ 2)H +(D ÷ Q)S

= (18 ÷ 2)75 + (1215 ÷ 18) × 10

= 675 + 675

= $1350

3 0

2 years ago

As a service dimension increases in importance, a customer's zone of tolerance _____ and his or her desired and adequate service

MrRa [10]

As a service dimension increases in importance, a customer's zone of tolerance narrows and his or her desired and adequate service levels increase.
Customers who likes service oriented business, will expect that they will be treated as a true king by the business providers. This will make the service provider to increase its level of services and place the customers convenience above all else

7 0

3 years ago

How is the russian economy adjusting to the difficulties of a centrally planned economy?

yanalaym [24]

When we say centrally planned economy, this means that the economy is being controlled and managed by the government rather than the individual businesses between the owners and the consumers. There was a time that the Russian economy found it difficult to adjust and the way how they adjusted is by modifying the economy. The modification included free market practices which enabled individual owners to gradually balanced their businesses.

8 0

3 years ago

Read 2 more answers

Perform a horizontal analysis on the following information providing both the dollar amount and percentage change.

Vera_Pavlovna [14]

Answer and Explanation:

The computation of the percentage of each amount is as follows;

Particulars 2020 Change Percentage of change

a b (b ÷ a) × 100

Cash $170,000 $500,000 294%

Accounts Receivable $710,000 $270,000 38%

Inventory $520,000 $190,000 37%

Long Term Assets $2,100,000 -$200,000 -9.52%

Total Assets $3,500,000 $760,000 21.71%

6 0

3 years ago