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4 years ago

In a responsibility accounting system:

Business

1 answer:

Lelechka [254]4 years ago

8 0

Answer:

Option A

Explanation:

A responsibility model in accounting refers to the program that collects and offers administrators details to assess the performance of department heads. In other expressions, this is a framework used to assess how good departments handle expenditures and handles costs.

The responsibility accountability mechanism is built on the notion that agencies should be properly managed as accurately as possible. The director and upper-level managers should not be responsible for the specific divisions daily activities.

In simple words, The accountability mechanism allows supervisors to manage and assign related costs depending on what they're doing at the moment.

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Serile Pharma places 800 units in production during the month of January. All 800 units are completed during the month. It had n

liberstina [14]

Answer:

Per unit cost will be $197.5

Explanation:

We have given number of units produced = 800

Direct material cost added in January = $74000

And conversion cost added in January = $84000

So total cost = $74000+$84000 = $158000

We have to find the per unit cost of product produced

So per unit cost is given by total cost divided by total number of units produced

So per unit cost $=\frac{158000}{800}=$197.5$

4 0

4 years ago

The following information was taken from Charu Company's balance sheet: Fixed assets (net) $860,000 Long-term liabilities 200,00

AlladinOne [14]

Answer:

A. 4.3

B. 2.4

Explanation:

(a) Calculation to determine ratio of fixed assets to long-term liabilities

Using this formula

Ratio of fixed assets to long-term liabilities =Fixed assets (net)/Long-term liabilities

Let plug in the formula

Ratio of fixed assets to long-term liabilities= $860,000 /$200,000

Ratio of fixed assets to long-term liabilities=4.3

Therefore Ratio of fixed assets to long-term liabilities is 4.3

(b) Calculation to determine ratio of liabilities to stockholders' equity

Using this formula

Ratio of liabilities to stockholders' equity=Liabilities/Total stockholders’ equity

Let plug in the formula

Ratio of liabilities to stockholders' equity=$600,000 /$250,000

Ratio of liabilities to stockholders' equity=2.4

Therefore ratio of liabilities to stockholders' equity is 2.4

7 0

3 years ago

Balmforth Products, Inc. makes and sells a single product called a Bik. It takes three yards of Material A to make one Bik. Budg

prohojiy [21]

Answer:

the desired ending inventory for JUne is 4,350 yards

Explanation:

the computation of the desired ending inventory for JUne is shown below;

= June production × given percentage × number of yards taken

= 14,500 units × 10% × 3 yards

= 4,350 yards

Hence, the desired ending inventory for JUne is 4,350 yards

The same should be considered and relevant

3 0

3 years ago

In a make-or-buy decision, a. the company must choose between expanding or dropping a product line. b. the company must choose b

Travka [436]

Answer:

Correct option is (c)

Explanation:

Make-or-buy decision is a form of strategy to analyse if a product must be manufactured internally or sourced from outside suppliers.

Cost and benefits related to the product being produced internally or outsourced is studied and compared before arriving at a decision. If cost of producing and storing goods are less as compared to the cost incurred in outsourcing, then decision to make will be taken and vice-versa.

So, make-or-buy decision involves considering relevance of purchase price of goods sourced externally.

6 0

3 years ago

Tara purchased a machine for $40,000 to be used in her business. The cost recovery allowed and allowable for the three years the

nexus9112 [7]

Answer:

c. $11,480

Explanation:

Given that

Cost recovery allowed Cost recovery allowable

Year 1 $16,000 $8,000

Year 2 $9,600 $12,800

Year 3 $5,760 $7,680

The computation of gain should Tara recognize is shown below:-

Cost $40,000

Less:

Greater cost of recovery

allowable or allowed

Year 1 $16,000

Year 2 $12,800

Year 3 $7,680 $36,480

Adjusted basis $3,520

Gain to be recognized = Residual value - Adjusted basis

= $15,000 - $3,520

= $11,480

So, for computing the gain to be recognized we simply deduct the adjust basis from residual value.

7 0

4 years ago