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raketka [301]
3 years ago
7

Explain what is meant by an activity measure. Identify an appropriate activity measure for analyzing the cost structure of the b

ook donations department within the university’s library. Justify your answer. Is the activity measure you identified a true cost driver? Explain
Business
2 answers:
4vir4ik [10]3 years ago
8 0

Answer:

Explanation:

• ACTIVITY MEASURE: A measure of the amount of activity that drives the costs in an activity cost pool

• It is a quantitative measure of how much activity is performed, such as number of books processed.

• A COST DRIVER: is an activity that causes the total cost to change.

• In this case the NUMBER OF BOOKS PROCESSED can be a cost driver

• Since the salary, stipend, and facility costs are essentially fixed that means the number of books processed is not a true cost driver for those costs.

• However, the number of books processed does drive the total cost for the RFID tags and would be considered a true cost driver for this cost.

Gala2k [10]3 years ago
6 0

Answer:

Refer below for the explanation.

Explanation:

-Activity Measure Definition: A portion base in a movement based costing framework; in a perfect world, a proportion of the measure of action that drives the expenses in an action cost pool, hence its a quantitive measure.

-An event that occurs the total cost to change is called cost driver.

-Number of books can be a cost driver.

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_________ is the managerial process of creating and maintaining a fit between an organization's objectives and resources and the
insens350 [35]

Answer:

Strategic planning

Explanation:

6 0
3 years ago
A company earned $2,880 in net income for October. Its net sales for October were $12,000. Its profit margin is:
snow_lady [41]

Answer:

profit margin = 23.33%

Explanation:

profit margin = net profit /  net sales

  • net profit = $2,800
  • net sales = $12,000

profit margin = $2,800 / $12,000 = 0.233333 = 23.33%

The profit margin is a profitability ratio used to compare how many cents different companies are able to make from selling $1. Different companies have different sales levels, but we can group companies by industries and then compare them in order to determine which ones are more efficient at generating income. E.g. Company A sells $100 million but only makes $2 million in profits per year (PM = 2%), and it is much less efficient than Company B that sells $10 million and makes $1 in profits (PM  = 10%). Company A's costs are too high compared to Company B's costs.  

5 0
3 years ago
Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the
Lana71 [14]

Answer:

$202,701,713.58

Explanation:

Present value of this liability = Value of liability / ((1+r)^t)

Present value of this liability = $750 million / ((1+0.08)^17)

Present value of this liability = $750 million / (1.08)^17

Present value of this liability = $750 million / 3.7000180548

Present value of this liability = $202,701,713.5840815

Present value of this liability = $202,701,713.58

6 0
3 years ago
Shen lives in Dallas and runs a business that sells pianos. In an average year, he receives $851,000 from selling pianos. Of thi
Elis [28]

Solution :

1.

The income from renting his showroom that Paolo would receive if he allowed to rent his showroom is a Implicit cost as this is a cost which will not be paid in actual.

The wages as well as the utility bills paid by Paolo is an example of explicit cost as this cost would be paid in actual for the businesses and are added in accounting.

The wholesale amount that Paolo pays for the pianos to the manufacturer is an explicit cost and is aid in actual to the manufacturer.

The salary that Paolo could have earned if he choses to be an accountant will be an implicit cost as this cost is not paid in actual.

2. Paolo's accounting profit can be calculated by :

  Accounting profit = revenue - explicit cost

                                 = 851,000 - 476,000 - 281,000

                                = $ 94,000

3. Paolo's economic profit is :

   Economic profit = accounting profit - implicit profit

                             = 94,000 - 34,000 - 71,000

                              = -11,000

6 0
3 years ago
A coupon bond that pays semiannual interest is reported in the Wall Street Journal as having an ask price of 116% of its $1,000
Anna35 [415]

Answer:

$1,174.75

Explanation:

The computation of the invoice price of the bond is shown below:

As we know that

Invoice Price of Bond = Ask Price of Bond + Accrued interest

where,

Ask Price is

= $1,000 × 116%

= $1,160

Interest accrued for 3 months is

= $1,000 × 5.90% × 3 months ÷ 12 months

= $14.75

So,

Invoice Price of Bond is

= $1,160.00 + $14.75

= $1,174.75

3 0
3 years ago
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