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3 years ago

Which of the following listings correctly describes the order in which the four types of budgets must be prepared?

Business

1 answer:

professor190 [17]3 years ago

3 0

Answer:

b. Sales, production, direct materials purchases, cash disbursements.

Explanation:

First, you calculate your sales.

Then, the amount produced to fulfill your sales and desired inventory stocks

Based on your production, you can calculate the direct materials purchases

Lastly, with the combination of raw materials purchases, along with other information, you generate the cash disbursements budget

a.- you need to know the production to know how much direct materials do you need. INCORRECT

c.- you can't calculate how much will you pay for the direct materials without knowing how many direct materials are needed. INCORRECT

d.- you need to know the number of sales, to know how much to produce. Else you will be producing without knowing how much do you need. INCORRECT

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Tammy, a resident of Virginia, is considering whether to purchase a $100, 000 North Carolina bond that yields 4.6% before tax. S

Degger [83]

Answer:

A. Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Virginia Bond

Explanation:

A. Calculation to Determine the after tax income for Virginia Bond

Using this formula

After tax income for Virginia Bond=Face value*Virginia bonds of comparable risk

Let plug in the formula

After tax income for Virginia Bond=$100,000*4.5%

After tax income for Virginia Bond=$4,500

Calculation to Determine the after tax income for North Carolina Bond

Interest income before tax $4,600

(100,000*4.60)

Less State marginal tax ($230)

(5%*$4,600)

Interest income net of state tax $4,370

($4,600-$230)

Add Federal marginal tax $81

(35%*230)

After tax income for Noth Caroline Bond $4,451

Therefore the the after tax income from each bond will be:

Virginia Bond: $4,500

North Carolina Bond: $4,451

B. Based on the above calculation the options that will provide the greater after-tax return to Tammy will be VIRGINIA BOND reason be that it has high After tax income of the amount of $4,500 compare to Noth Caroline Bond which has After tax income of the amount of $4,451.

8 0

2 years ago

The budgeting process does not involve which of the following activities?

Vera_Pavlovna [14]

Answer:

Increase in sales by increasing marketing efforts.

Explanation:

A budget can be defined as a financial plan which is used to make an estimate of the amount of amount that goes in and comes out. It can also be described as a financial plan that controls expensenses, resources, debts within a specific period of time.

Budgeting is carried out inorder to maintain and control an individual or an organization income so as to avoid wastage of resources. Budgeting keeps an individual or organization focused on achieving their different goals and objectives.

8 0

3 years ago

Best Foods Company is considering expanding beyond the regional market segments now served by its Hellmann's mayonnaise. One cri

LenaWriter [7]

Answer:

A. Best Food's competitive position in the segment

Explanation:

Best Food's competitive position in the segment is an example of the criterion used to select target market segments.

It would be used by the management to evaluate and analyze potential new geographic market segments in order to know whether new equipment must be bought to serve each new segment.

7 0

3 years ago

Read 2 more answers

Crockin Corporation is considering a machine that will save $9,000 a year in cash operating costs each year for the next six yea

Roman55 [17]

Answer:

IRR = 16.5%

Explanation:

The IRR is the discount rate that equates the present value of cash inflows to that of cash outflows. At the IRR, the Net Present Value (NPV) of a project is equal to zero

If the IRR greater than the required rate of return , we accept the project for implementation

If the IRR is less than that the required rate , we reject the project for implementation

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

NPV = PV of annual savings - initial cost

PV of annual savings = A× (1- (1+r)^(-n) )/r

A- annual savings in operating cost , r- rate of return, n- number of years

NPVa at 10% discount rate

PV of cash inflow = (9,000× 1-1.1^-6)/0.1 = 39,197.35

NPV = 65,328.91 - 33,165 = 6,032.35

NPVb at 20% discount rate

PV of cash inflow = (9,000× 1-1.2^-6)/0.2= (3,235.41)

NPV = 29,929.59 -33,165 = (3,235.41)

IRR = a% + ( NPVa/(NPVa + NPVb)× (b-a)%

IRR = 10% + ( (6,032.35/(6,032.35 +3,235.41) )× (20-10)%= 16.51%

IRR = 16.5%

8 0

3 years ago

Overhead Applied to Jobs, Departmental Overhead Rates Xania Inc. uses a normal job-order costing system. Currently, a plantwide

sveta [45]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

Department A Department B

Overhead costs (expected) $120,000 $80,000

Normal activity (machine hours) 16,000 5,800

A) To calculate the plantwide overhead rate we need to use the following formula:

Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Estimated manufacturing overhead rate= (120,000 + 80,000) / (16,000 + 5,800)= $9.17 per machine hour

B) We need to use the same formula, but for each department:

Department A:

Estimated manufacturing overhead rate= 120,000/16,000= $7.5 per machine hour

Department B:

Estimated manufacturing overhead rate= 80,000/5,800= $13.79 per machine hour

7 0

3 years ago