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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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The market capitalization of this company is $140 million, it's beta is 0.75, the risk free rate is 2% and the market risk premi
tiny-mole [99]

Answer:

Ans. The cost of equity capital is 6.5 (6.5%)

Explanation:

Hi, all we need to do is fill the following equation with the data from the problem.

r(e)=rf+beta*(MRP)

Where:

rf = Risk free rate (in our case, 2%)

MRP = market risk premium (in our case, 6%)

r(e) = Cost of equity capital

Therefore, this is what we get.

r(e)=0.02+0.75*0.06=0.065

So the cost of equity capital is 6.5% or 6.5 as the problem suggests to answer.

Best of luck.

5 0
3 years ago
Show how Cablevision can conduct an ROI analysis. Describe the information that the company should collect and how it should b c
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Answer:

Explanation:

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PSYCHO15rus [73]

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8 0
3 years ago
A. The company provided $2,200 in services to customers that are expected to pay the company sometime in January following the c
FrozenT [24]

Answer:

Year end journal entries are given below in explanation

Explanation:

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Account                                             Dr                  Cr

Accounts Receivable                       2200

Sales/Revenue                                                        2200

b. Wages expense have incurred but are not paid yet. Thus, its Liability should be booked.

Wages Expense                                1200

Wages payable / Liability                                        1200

c. The company has taken loan from the bank. Interest due on the loan is 416 but are not paid yet.

Interest Expense                                416

interest Payable                                                       416

d.  The company had contract for lawn service. To book the expense of lawn service

Lawn Service Expense                        520

Lawn Service Payable                                                520

e. The company has also made some investment. $ 220 is earned on that investment. to book the non operating income

Interest revenue receivable                220

Interest revenue - Non operating income                   220

f. Salaries of Supervisor is due on  31 st December but are not paid yet.

Salaries Expense                                   920

Salaries payable                                                              920                              

6 0
3 years ago
Read 2 more answers
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