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Sunny_sXe [5.5K]
3 years ago
5

Most manufacturing plants are considered cost centers because they have control over A. sales and costs. B. fixed assets and cos

ts. C. costs only. D. fixed assets and sales.
Business
2 answers:
Ierofanga [76]3 years ago
8 0

Answer:

C. Costs Only

Explanation:

Cost centers are areas in an organization that doesn't add money (profit) directly to the organization, but still cost the organization operation money. They are departments in an organization is which cost are charged. Cost centers don't make profit for the organization directly, but they help in making profit indirectly for the organization. They are areas in a company that incurs cost but in indirectly contribute to income received. Example of a cost center is manufacturing plants. Cost centers have control over costs only.

Cerrena [4.2K]3 years ago
3 0

Answer:

Costs

Explanation:

Cost center is a department in an organization that does not directly add to the profit but cost the organization resources to maintain . However  cost centers still have an indirect impact on the profitability of the organization through operational efficiency.

They are mostly involved in operational , management role. One specific duty of a cost center is management . It ensures that the organization uses the best cost decisions in the course of production.

The manufacturing plants makes use of this process.

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On December 21, 2020, Sage Company provided you with the following information regarding its equity investments. December 31, 20
Sindrei [870]

Answer:

(a) Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

Cr Equity Investment (trading) $10,900

(c) Dec. 31, 2021

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2020

Dec. 31, 2020

Dr Unrealized Holding Gain or Loss- Income $1,610

Cr Fair value adjustment $1,610

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2021

During 2021

Dr Cash $10,350

Dr Loss on sale of investment $550

($10,900-$10,350)

Cr Equity Investment (trading) $10,900

(c) Preparation of the adjusting journal entry needed on December 31, 2021

Dec. 31, 2021

Dr Fair value Adjustment $1,100

Cr Unrealized Holding gain or loss - Income $1,100

Calculation for Fair value Adjustment

Cost FV Profit Unrealized Gain (Loss)

Clemson Corp. stock $20,400-$19,390 =$1,010

Buffaloes Co. stock $20,400-$20,900=-$500

Total portfolio $40,800 $40,290 ($510)

Previous Fair value adjustment $1,610

Unrealized Holding Gain $1,100

($1,100-$510)

4 0
2 years ago
Jokan contributes a nondepreciable asset to the Mahali LLC in exchange for a one-fourth (25%) interest in the LLC's capital and
dimulka [17.4K]

Answer:

A$33,500

B. $100,500

Explanation:

A. Calculation to determine How much of the nonrecourse debt is allocated to Jokan

Nonrecourse debt allocated=($167,500-$100,500)/2

Nonrecourse debt allocated=$67,000/2

Nonrecourse debt allocated=$33,500

Therefore based on the information given the amount of the NONRECOURSE DEBT that is allocated to Jokan is 25% or $33,500

B. Calculation to determine the amount of Jokan's basis in the LLC interest following the contribution

Basis in the LLC interest=$33,500+($167,500-$100,500)

Basis in the LLC interest=$33,500+$67,000

Basis in the LLC interest=$100,500

Therefore the amount of Jokan's basis in the LLC interest following the contribution is $100,500

4 0
3 years ago
Supler Corporation produces a part used in the manufacture of one of its products. The unit product cost is $21, computed as fol
Len [333]

Answer:

$4 advantage

Explanation:

In this question we need to compare the cost between the relevant cost and the outside supplier cost

The relevant cost is

= Direct material per unit + direct labor per unit + variable manufacturing overhead per unit + fixed manufacturing overhead per unit

= $8 + $5 + $3 + $5 × 80%

= $8 + $5 + $3 + $4

= $20

Since 80% of the fixed manufacturing cost above is eliminated so we considered the same

And, the outside supplier cost is $16

So based on the above calculation, the financial advantage is

= $20 - $16

= $4 advantage

This shows the company should purchased from outside supplier as it saves $4

3 0
3 years ago
What happens if the amount of Bad Debt Expense is overstated at year end? A : Net income will be overstated. B : Allowance for D
Yuri [45]

Answer:

D. Net Accounts Receivable will be understated

Explanation:

5 0
3 years ago
An individual is at a restaurant with two other people and they are trying to determine the tip for their check total which came
wariber [46]

Answer: $10.00

Explanation:

The individual and the other two are trying to pay an 18% tip so the amount they should tip can be calculated by:

= Check total * 18%

= 57.38 * 18%

= $10.3284

= $10.00 to the nearest dollar

5 0
3 years ago
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