<span>The main objective of quality assurance is to avoid problems or to identify them as soon as possible. Quality assurance is making sure that a product or service maintains a set level of faulty. If more attention needs to be put on the processes to make sure that the quality stays, that's okay, but it needs to be maintained. QA is a shortened version of quality assurance and many company's have a QA team set in place so that mistakes and defects are prevented. </span>
Answer: The $4.05 market price
Explanation: Air-tite can buy or sell Hydrol at $4.05. If they decide to accept the order, there has to be a higher return on the use of Hydrol in the return than they would get from selling Hydrol as is.
There may also be an opportunity cost to using the product for this special order if there is an order that would yield higher returns for the use of Hydrol.
The quantity that would remain after making the special order does not have any impact on the decision making process, as they are considering just one order that requires Hydrol.
The purchase price is not relevant as they cannot purchase Hydrol at that price in the present. The total quantity is not relevant either as they have enough for the order.
Answer:
$1,500
Explanation:
On the end-of-period spreadsheet, the credit adjustment of $500 is made in the Debit balance of Supplies inventory, which will net off the values and resulted Supplies Inventory value will be $1,500 at the end of the year and it will be reported on the financial statements. $1,500 should be appeared for supplies in the adjusted Trial Balance column.
Answer & Explanation:
<u>a.- Revenues: </u>Increase for 3.2 millions
It will be recognize for the entire order, as it was deliveried entirely within the accounting period.
<u>b.- Earnings: </u> Increase for 1.5 millions
The earnings for the business will be the net between the revenues and expenses.
3.2 revenues - 1.7 expenses = 1.5 earnings
<u>c.- Receivables: </u> Increase for 1.8 millions
It will increase for the unpaid portion ofthe order.
<u>d.- Inventory</u> Decrease for 1.7 millions
It will decrease for the entire cost of the order, as it was within this accounting period both, revenues and the expense related to it, will be recognize.
<u>e.- Cash:</u> Increase for 1.4 millions
It will increase for the amount received from the customer. As it was no payment from the business in the transaction.
Answer:
$1,545,000
Explanation:
The formula to compute the cost of the building equal to
Rate of return = (Rental income - expenses) ÷ (cost of building
)
where,
Rate of return = 8%
Rental income equals to
= ($600 × 4 units + $750 × 4 units + $725 × 4 units + $800 × 4 units) × 12 months
= $138,000
Total expense
= $1,200 × 12 month
= $14,400
Now the cost of building would be
8% = ($138,000 - $14,400) ÷ (cost of building
)
8% = $123,600
So, the cost of building equal to $1,545,000
