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3 years ago

A cost system determines the cost of a cost object by:

Business

1 answer:

solniwko [45]3 years ago

6 0

Answer:

a) Accumulating and then assigning costs

Explanation:

A cost system is a system put in place by management to monitor costs incurred by an entity or cost object. A cost system is a combination of related subsystems which monitors, control and report costs information. In determining the cost of an object a cost system accumulates costs before assigning to cost units.

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Innovative Consulting has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts

Marrrta [24]

Answer:

<h2>Innovative Consulting</h2>

<h3>General Journal</h3>

Date Account Details Debit Credit

Mar. 1 51 Rent Expense $4,000

11 Cash $4,000

To record the payment for rent for the month.

Mar. 3 52 Advertising Expense $1,350

11 Cash $1,350

To record the payment for advertising expense.

Mar. 5 13 Supplies $1,800

11 Cash $1,800

To record the payment for supplies.

Mar. 6 14 Office Equipment $11,500

21 Accounts Payable $11,500

To record the purchase of office equipment on account.

Mar. 10 11 Cash $8,600

12 Accounts Receivable $8,600

To record the receipt of cash from customers.

Mar. 15 21 Accounts Payable $3,180

11 Cash $3,180

To record the payment of creditor on account.

Mar. 27 54 Miscellaneous Expense $700

11 Cash $700

To record the payment of Miscellaneous expense.

Mar. 30 53 Utilities Expense $550

11 Cash $550

To record the payment of telephone bill.

Mar. 31 2 Accounts Receivable $37,200

41 Fees Earned $37,200

To record fees earned and billed to customers for the month.

Mar. 31 53 Utilities Expense $830

11 Cash $830

To record the payment of electricity bill.

Mar. 31 33 Dividends $2,000

11 Cash $2,000

To record the payment of dividends to shareholders.

Explanation:

Innovative Consulting records business transactions as they occur on a daily basis in the general journal. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.

8 0

3 years ago

Deep Water Marina has 12,000 shares of stock outstanding that were sold to the general public last year. The firm has just decid

AnnZ [28]

Answer:

B) Rights offer

Explanation:

A rights offering (or rights issue) occurs when a corporation decides to issue additional stock and offers these new stocks to existing stockholders in the same proportion to their current holding percentage. Only the stocks that are not purchased by existing stockholders will be offered to other investors.

3 0

3 years ago

Company X has 100 shares outstanding. It earns $1,000 per year and expects to pay all of it as dividends. If the firm expects to

Leno4ka [110]

Answer:

The stock price after the dividend payment is $100 per share

Explanation:

According to the data the Dividend per year is $1,000 and the Required Rate of Return is 10% .

Hence, in order to calculate the stock price after the dividend payment we have to use the following formula first:

Stock price = [Total Dividend amount / Required rate of return]

Stock price = [$1,000 / 0.10]

Stock price = $10,000

Finally the Stock price after the dividend payment. = [Total Stock Value / Number of outstanding shares]

Total Stock value = $10,000

Number of outstanding shares = 100 shares

Stock price after the dividend payment = [$10,000 / 100 shares]

Stock price after the dividend payment = $100 per share

4 0

3 years ago

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then _____.

Mice21 [21]

If a monopolist's production process has economies of scale and average cost exceeds marginal cost, then the government should make the price equal to the marginal cost.

Monopolies are businesses that are dominated by few people in the industry. They have little competition from others and have high barriers to entry.

They can sometimes reduce production to increase the price of their goods and services.

The government can regulate the activities of monopolies by making their price equal to the marginal cost.

Learn more about monopolies here:

brainly.com/question/13113415

8 0

2 years ago

Glassworks Inc. produces two types of glass shelving, rounded edge and squared edge, on the same production line. For the curren

jenyasd209 [6]

Answer:

Overhead Cost Category (Activity Cost Pool) Cost

Supervision $2,160

Depreciation of machinery $28,840

Assembly line preparation <u> $23,000</u>

Total overhead $54,000

Supervision

Direct labor cost ($) $6,200 $11,800 $18,000

Depreciation of machinery

Machine hours 400 hours 800 hours 1,200 hours

Assembly line preparation Setups (number)

32 times 93 times 125 times

overhead costs assigned to Rounded Edge

supervision = $2,160 x ($6,200 / $18,000) = $744

depreciation = $28,840 x (400 / 1,200) = $9,613

assembly line preparation = $23,000 x (32/125) = $5,888

total overhead costs = $16,245

overhead costs assigned to Squared Edge

total overhead costs = $54,000 - $16,245 = $37,755

total costs assigned to Rounded Edge

materials $9,500

direct labor $6,200

overhead $16,245

total $31,945

cost per foot = $31,945 / 10,500 = $3.0424 per foot

total costs assigned to Squared Edge

materials $21,600

direct labor $11,800

overhead $37,755

total $71,155

cost per foot = $71,155 / 14,000 = $5.0825 per foot

3) The average cost per foot of Rounded Edge decreased because lower overhead costs were allocated to their production.

The average cost per foot of Squared Edge increased because higher overhead costs were allocated to their production.

4 0

3 years ago