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den301095 [7]
3 years ago
11

Joan is trying to decide if she wants to open her own hair​ salon, or buy an existing one. Curl Up and Dye is a very popular sal

on in​ town, and Joan knows the owner wants to retire soon. After approaching the owner of Curl Up and​ Dye, Joan was asked to pay an amount greater than the current value of the assets for the business. In addition to the value of the​ assets, the current owner thinks there is value in the name of the salon and the established client base. What is the current owner of Curl Up and Dye expecting Joan to pay​ for?
Business
1 answer:
enyata [817]3 years ago
4 0

Answer:

Goodwill

Explanation:

Goodwill is the value associated with a business brand name, its existing customers, ideal location, patents, and good employee relations.  Goodwill emerges when a business is being acquired in its totality. It is considered as an intangible asset.

Goodwill increases the value of a business over and above the current value of its physical assets. Joan is being asked to pay for goodwill. Goodwill will represent the brand name, customers, and good relationships that Joan will inherit from the current owner of curl up and dye.

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EcoFabrics has budgeted overhead costs of $1,162,350. It has allocated overhead on a plantwide basis to its two products (wool a
alina1380 [7]

Answer:

EcoFabrics

1. Overhead Rates using activity-based costing:

Cutting = $1.80 per machine hour

Design = $390 per setup

2. Allocation of overhead:

                                  Wool                            Cotton

Cutting                  $221,400                     $221,400

Design                    479,700                       239,850

Total allocated      $701,100                      $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10

4. Allocation of overhead:

                               Wool            Cotton

Total allocated   $581,175        $581,175

Explanation:

a) Data and Calculations:

Budgeted overhead costs = $1,162,350

Estimated direct labor hours = 553,500

Activity Cost      Cost Drivers   Overhead Costs   Wool   Cotton     Total

Pools                  

Cutting               Machine hours     $442,800   123,000 123,000 246,000

Design                Number of setups  719,550        1,230         615      1,845

1. Overhead Rates using activity-based costing:

Cutting = $1.80 ($442,800/246,000) per machine hour

Design = $390 ($719,550/1,845) per setup

2. Allocation of overhead:

                               Wool                                     Cotton

Cutting                  $221,400 ($1.80 * 123,000)  $221,400 ($1.80 * 123,000)

Design                    479,700 ($390 * 1,230)        239,850 ($390 * 615)

Total allocated      $701,100                               $461,250

3. Overhead rate using the traditional approach:

Predetermined overhead rate = $2.10 ($1,162,350/553,500)

4. Allocation of overhead:

                               Wool                                     Cotton

Total allocated   $581,175 ($1,162,350 * 50%)   $581,175 ($1,162,350 * 50%)

4 0
2 years ago
Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments
Vladimir [108]

Answer: Craft new initiatives to more strongly differentiate the various products/services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name

Explanation:

Once a company has diversified into a collection of related or unrelated businesses and concludes that some strategy adjustments are needed, the one that isn't one of the main strategy options that the company can pursue is crafting new initiatives to more strongly differentiate the various products or services in each of the company's businesses and thereby enhance the competitive power and reputation of the company's brand name.

This is because some strategies adjustment are needed and enhancing its competitive power isn't the right thing to do.

3 0
3 years ago
If a cost estimate indicates that a residential design is significantly over budget, what changes would you consider to reduce t
kogti [31]
<h3><u>Changes considered to reduce the cost of the project: </u></h3>

Cost Estimates of a Residential Design have the following elements:

1) Quantity Takeoff

2) Labor Hours

3) Labor Rates

4) Material Prices

5) Equipment Costs

6) Subcontractor Quotes

7) Indirect Costs

8) Profit Margin

Quantity Takeoff is the very basic element required in Residential Building. Labor hours and rates depends on the location, work difficulty, market value, and other extrinsic factors. Material prices and Subcontractor Quotes again depends on location, supply and demand. Equipment Costs depends on the location, place of purchase, transportation cost, size of equipment, etc. Indirect costs are overheads for labor and contractors.

As we can check the above elements, we cannot change Quantity takeoff, as no one wants to compromise in the quality. However, we can try to slightly negotiate with Labor rates and Subcontractor Quotes. Again, as mentioned the budget is significantly high, so we need to work on reducing 2 costs, which are Equipment Costs and Material Prices.

6 0
3 years ago
When creditors, managers, and investors look at expenses as a percentage of revenue, they are __________.
sineoko [7]

Answer:

Doing a financial statement analysis.

Explanation:

Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.

Financial statement analysis can be defined as the process of analyzing, estimating and reviewing the financial statements of a business firm or organization in order to make better economic decisions and profits in the future.

Hence, when creditors, managers, and investors look at expenses as a percentage of revenue, they are doing a financial statement analysis.

7 0
3 years ago
An appraiser prepared an appraisal report in April 2019. He testified in court regarding the value of the property in January 20
Salsk061 [2.6K]

Answer: April 2024

Explanation:

Based on the information given in the question, at a minimum, the appraiser must retain his workfile till April 2024.

It should be noted that appraisal records should be kept for at least a period of 5 years. In a situation whereby there is a report which is involved in the litigation, then such file must be maintained for a further two years. This is according to the Uniform Standards for Professional Appraisal Practice Record Keeping Rule.

7 0
2 years ago
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