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aleksklad [387]
3 years ago
10

The direct materials and direct labor budgets provide information for preparing the

Business
2 answers:
iragen [17]3 years ago
7 0

Answer:

The cash budget is the appropriate answer

Explanation:

When the budgeted direct materials as well as the required  budgeted labor hours are ascertained, the step needs to be taken further in order to know how the costs budgeted fit into overall cash situation of the business.

The suppliers of direct materials would have given the company the maximum number of days that expect cash , in order to meet up with such deadline the company must plan ahead by incorporating the values of such purchases into cash flow projections, the same also applies to cost of direct labor.

Inga [223]3 years ago
3 0

Answer:

D)   cash budget.

Explanation:

Any budget is only a management tool, since it is really not an official accounting statement, nor it actually reports anything. They are extremely useful to measure a company's productivity and efficiency compared to previous standards. A budget generally works by taking previous expenses, consumptions and outputs, and then estimates the future costs, but they are only estimates that usually need to be adjusted. Budgets are adjusted for both positive reasons (increase in efficiency and productivity) or negative reasons (wasted materials, time, etc.).

In this case, direct materials and direct labor are usually referred to as prime costs since they are directly related to the production process. When you are estimating or budgeting prime costs, you are estimating your cash budget, because prime costs result in cash outflows. You need cash to purchase materials and you need cash to pay for workers. On the other hand, overhead costs are usually associated with indirect costs like depreciation, and other expenses that also require cash outflows like supervisors' salaries, utilities, etc. But the bulk of cash outflows is determined by the prime costs.

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An individual who has left his or her native country and is unwilling or unable to return to it because of persecution or fear o
viva [34]

Answer: A Refugee

Explanation:

A Refugee is an individual who has left his native country and crossed into another country, due to conflict or war in their native land. In most cases, refugees are unable to return to their native country and would have to start life afresh in the new country.

5 0
3 years ago
Swinnerton Clothing Company's balance sheet showed total current assets of $3,300, all of which were required in operations. Its
Zanzabum

Answer:

c. $2,580

Explanation:

Calculation for What was its net operating working capital that was financed by investors

Current assets $3,300

Less Accounts payable ($575)

Less Accrued wages and taxes ($145)

Net operating working capital $2,580

($3,300-$575-$145)

Therefore What was its net operating working capital that was financed by investors will be $2,580

7 0
3 years ago
Two incinerators are being considered by a waste management company. Design A has an initial cost of $2,500,000, has annual oper
Vika [28.1K]

Answer:

<u>Desing A:   </u>23,024,370‬

<u>Desing B:   </u>22,520,274.6

It should purchase desing B as the capitalized cost is lower.

Explanation:

We consider annuity for the overhauls and then, perpetuity to consider this incinerators will last indefinitely.

maintenance cost: 800,000 / 0.05 = 16,000,000

<u>Overhaul: </u>

The company will need to fund 1,250,000 every 5 years. We need to determinate the annuity to obtain this future value:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\

PV 1,250,000

time 5

rate 0.05

1250000 \div \frac{(1+0.05)^{5} -1}{0.05} = C\\

C  $  $ 226,218.498

<u>Then at perpetuity:</u>

$ 226,218.498  / 0.05 = 4,524,370

<u>Desing A capitalized cost:</u>

2,500,000 + 16,000,000 + 4,524,370 = 23,024,370‬

We do the same for Desing B:

investment: 5,750,000

maintenance: 600,000 / 0.05 = 12,000,000

overhaul:

3000000 \div \frac{1-(1+0.05)^{-10} }{0.05} = C\\

C  $ 238,513.725

238,513.73/0.05 =  4,770,274.6

Capitalized cost: 5,750,000 + 12,000,000 + 4,770,274.6 = 22,520,274.6‬

8 0
3 years ago
Erica and Brett decide to form their new motorcycle business as an LLC. Each will receive an equal profits (loss) interest by co
koban [17]

Answer:

Brett's outside tax basis in his LLC interest is $45000

Explanation:

A partner outside tax basis consist of basis of contributed property, partnership debt allocated to the partner without any debt relief. Non recourse debt that is more than basis of contributed property must be given to the partner that contributed to the property.

Brett's outside tax basis in his LLC interest = Cash contribution + basis of building - debt of building + Non recourse loan + non recourse mortgage + remaining mortgage on building

Cash contribution = $5000

Basis of building = $30000

Debt of building = $35000

Non recourse loan = Profit sharing ratio × Non recourse loan = 50% × $50000 = $25000

non recourse mortgage = $5000

remaining mortgage on building  = 50% × $30000 = $15000

Brett's outside tax basis in his LLC interest = $5000 + $30000 - $35000 + $25000 + $5000 + $150000 = $45000

4 0
3 years ago
2. Explain the four characteristics of the price system.
goblinko [34]

Answer:

1-The four characteristics of the price system are that it is neutral, market driven, flexible, and efficient. It is neutral because prices do not favor the producer or the consumer because the they both make choices that determine the equilibrium price.

2-Why is the price system an efficient allocator of economic resources? Prices are neutral, which means they are equally fair to both consumers and producers. They are flexible which means they can adapt to changing economic conditions. Prices are familiar which means that everyone understands how they work.

3-how do prices serve as signals and incentives to producers to leave a particular market? it showed that when a strong competitor offers similar products for lower prices other producers must also lower their prices. Less efficient companies were driven from the market.

4-demonstrates the effects of competitive pricing because it shows how the company strategically lured customers away from rival producers while still making the highest profit.

Explanation:

:)

5 0
2 years ago
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