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3 years ago

A constraint on qualitative characteristics of accounting information is:

Business

2 answers:

Novay_Z [31]3 years ago

7 0

Answer:

cost effectiveness

Explanation:

In simple words, cost effectiveness refers to the attribute of some data or report in which the benefits of operations comes more than the cost leading to overall profit situation of the firm. As per the accounting standards, accounting information should be neutral, relevant and complete but cost effectiveness traits sometimes leads to some unethical practices like misleading information or misrepresentation.

Thus, cost effectiveness can be seen as a constraint on the accounting information as it works as an incentive to mislead the stakeholders or otherwise it could lead to damage to the firm in many ways.

Angelina_Jolie [31]3 years ago

5 0

Answer:

A constraint on qualitative characteristics of accounting information is COST EFFECTIVENESS

Explanation:

Cost-effectiveness places a constraint in qualitative characteristics of accounting information by analysing the way to examine both the costs and outcomes of one or more interventions. It compares an intervention to another intervention (or the status quo) by estimating how much it costs to gain a unit of a health outcome, like a life year gained or a death prevented

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A two-year college is often the best choice for students who need additional training or time to explore career options.

coldgirl [10]

True I think okay don't judge me:(

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3 years ago

Montross Lumber processes wood to be shipped to construction companies. In order to keep its products uniform, Montross conducts

tiny-mole [99]

Answer:

$450

Explanation:

Activity based costing is the process by which a business allocates cost on the basis of the number of times an activity is carried out.

For example if different departments use a photocopier to copy 3,000, 5,000, and 2,000 sheets. The total cost will be allocated based on amount of activity per department.

In this instance

Total number of boards= 36,000

Inspections= 5% of the total

Inspection cost= $15 per hour

Percentage that will be inspected= 0.05 * 36,000 = $1,800

It takes one minute to inspect each board, there are 60 minutes in one hour. So 60 boards are inspected in one hour.

Number of inspection hours= 1,800 ÷ 60= 30 hours

Total cost of inspection= Cost per hour * Number of hours

Total cost of inspection= 15 * 30= $450

7 0

3 years ago

QS 11-9 Recording warranty repairs LO P4 On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty

prisoha [69]

Answer:

On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts

Recording of revenue:

Cash $490 (debit)

Revenue $490 (credit)

Recording of Warranty granted :

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00 (credit)

$490 × 10% = $49.00

On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory

When warranty is subsequently received:

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Explanation:

On September 11, 2016, Home Store sells a mower for $490 cash with a one-year warranty that covers parts

Recording of revenue:

Cash $490 (debit)

Revenue $490 (credit)

We Recognise Revenue to depict transfer of control of mower

Recording of Warranty granted :

Assurance Warranty expense $49.00 (debit)

Warranty Provision $49.00 (credit)

$490 × 10% = $49.00

There is no option for customer to take the warranty or not, so this is a service warranty.The warranty is measured at the best estimate of expenditure required to settle the obligation that is at 10% of sales.

On July 24, 2017, the mower is brought in for repairs covered under the warranty requiring $34 in materials taken from the Repair Parts Inventory

When warranty is subsequently received:

Warranty Provision $ 34 (debit)

Repair Parts Inventory $ 34 (credit)

Utilise the Warranty Provision when the warranty claim is subsequently received

7 0

3 years ago

Zhao Co. has fixed costs of $429,000. Its single product sells for $187 per unit, and variable costs are $122 per unit. If the c

otez555 [7]

Answer:

$635,000 and : 34%

Explanation:

Margins of safety is the difference between expected sales and the break-even point.

For Zhao, expected sales are 10,000 units

The break-even points in units = fixed cost/ contribution margin per unit

fixed costs = $429,000

Contribution margin per unit = selling price - variable costs per unit

=$187 - $122

=$65

break-even point in units = $429,000/$65

break-even point = 6600 units

Margin of safety = 10,000 - 6600 units

=3400 units

In dollars is equal to margin of safety in units x selling price

=3400 x 187

=$635,000

as a percent of expected sales.

=3400/10000 x 100

=0.34 x 10,000

=34%

4 0

3 years ago

When the price of ground beef increases and all else is held constant, we would expect the supply of hamburgers to ___________,

rewona [7]

Answer:

Option (a) is correct.

Explanation:

When the price of ground beef increases, this means that there is an increase in the cost of production of hamburgers because the beef is used as an input in the production of hamburgers.

So, an increase in the price of beef will result in a decrease in the supply of hamburgers because it will become less profitable for the suppliers and this will also shifts the supply curve leftwards.

Hence, this lower supply of hamburgers will cause the price of hamburgers to rise.

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3 years ago