1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Aneli [31]
3 years ago
13

To guide cost allocation decisions, the ability to bear criterion ________.

Business
1 answer:
hoa [83]3 years ago
8 0

Answer:

the answer is D

Explanation:

Disagree. Cost accounting data plays a key role in many management planning and control decisions.  The division president will be able to make better operating and strategy decisions by being involved in key decisions about cost pools and cost allocation bases. Such an understanding, for example, can help the division president evaluate the profitability of different customers The salary of a plant security guard would be a direct cost when the cost object is the security department of the plant.  It would be an indirect cost when the cost object is a product. Exhibit 14-1 outlines four purposes for allocating costs:

1.   To provide information for economic decisions.

2.   To motivate managers and employees.

3.   To justify costs or compute reimbursement.

4.   To measure income and assets for reporting to external parties.

Exhibit 14-2 lists four criteria used to guide cost allocation decisions:

1.   Cause and effect.

2.   Benefits received.

3.   Fairness or equity.

Ability to bear. The cause-and-effect criterion and the benefits-received criterion are the dominant criteria when the purpose of the allocation is related to the economic decision purpose or the motivation purpose. Using the levels approach introduced in Chapter 7, the salesvolume variance is a Level 2 variance. By sequencing through Level 3 (salesmix and salesquantity variances) and then Level 4 (marketsize and marketshare variances), managers can gain insight into the causes of a specific sales-volume variance caused by changes in the mix and quantity of the products sold as well as changes in market size and market share. The total salesmix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the actual and budgeted mix of products sold. A favorable salesquantity variance arises because the actual units of all products sold exceed the budgeted units of all products sold. The salesquantity variance can be decomposed into (a) a marketsize variance (because the actual total market size in units is different from the budgeted market size in units), and (b) a market share variance (because the actual market share of a company is different from the budgeted market share of a company). Both variances use the budgeted average contribution margin per unit.

You might be interested in
Assume that you would like to purchase 100 shares of preferred stock that pays an annual dividend of $6.00 per share. However, y
butalik [34]

Answer:

$267.1211

Explanation:

return on preference share per unit is $6  , thus at 12% annual rate of return. Initial value of preference shares will be $50 per unit ( $6 divided by 12%).

Total value of preference shares = $50 multiplied by 100 preference shares = $5000

Future value of preference shares = 5000 (1.12)^5  = $8,811.7084

to find the value of money to be deposited to be able to buy the preference shares at the end of 5 yrs.

we work back to get the present value using the mutual fund annual rate

$8811.7084 = pv (1.06)^60  the rate is compounded monthly. Hence we shall compound the return 60 times in 5 years

Bank account money = 8811.7084  divided by 32.9877 = $267.1211

5 0
3 years ago
Suppose you're in charge of establishing economic policy for this small island country. Which of the following policies would le
Rom4ik [11]

Answer:

Encouraging saving by allowing workers to set aside a portion of their earnings in tax-free retirement accounts

Explanation:

Productivity increases when human capital increases due to higher education and training, when physical capital increases due to higher investments or when new technological breakthroughs increase productivity.

By encouraging savings, investments will increase as well as physical capital which results in an increase in productivity.

4 0
3 years ago
At December 31, 2019, Blanda Company had a credit balance of $15,000 in Allowance for Doubtful Accounts. During 2020, Blanda wro
Alex73 [517]

Answer:

journal entries

Write-off

Debit Bad Debts expense $11,000 Credit Accounts receivable $11,000

Recovery

Debit Bank $1,800 Credit Bad Debt Recovered income $1,800

Allowance for Doubtful debt Adjustment

Debit Allowance for doubtful debt Adjustment $4,000 Credit Allowance for doubtful debt $4,000

Explanation:

Write-off

The write-off creates an expense (bad debt) and and decreases an asset ( Accounts receivable)

Recovery

Since the amount has been written off as bad, when it is recovered it is no longer recognized as a payment on accounts receivable but an income the entity thought was lost.

Allowance for doubtful debt adjustment

The differences in the opening balance and closing balance either creates an expense or an income adjustment. These estimates are on net Accounts receivables ( after bad debts) are a negative assets.

19000 - 15000 = 4000(increase) adjustment and is an expense.

7 0
3 years ago
Which statement is true? A. Bonds are generally called at par value.B. A current list of all bondholders is maintained whenever
slavikrds [6]

Answer: Option C

Explanation:

A. Bonds can be called at discount or premium depending upon the interest rate availing in market and the coupon interest rate.

B. In case of bearer bonds no transactions and ownership records are maintained.

C. Indenture is the contract between issuer and holder specifying the duties and obligations of issuer and the rights of holders.

D. Collateralized bonds are backed by a pool of assets while debentures are unsecured bonds .

E. A bondholder can have the right to determine it only when he have the put option with him otherwise the right to call bond lies with the issuer.

8 0
3 years ago
When preparing the statement of cash flows using the indirect method, depreciation expense is added to net income because it ___
kodGreya [7K]

When preparing the statement of cash flows using the indirect method, depreciation expense is added to net income because net income is a starting point in measuring cash flows from operating activities

<h3>What is a Balance Sheet?</h3>

This refers to the inventory taken for all goods available in a warehouse, showing its financial records.

Hence, we can see that when a person is preparing the statement of cash flows with the indirect method, there is the addition of depreciation expense simply because the net income must be factored in.

Read more about statement of cash flows here:
brainly.com/question/735261

#SPJ1

8 0
2 years ago
Other questions:
  • What is a career fair?
    13·1 answer
  • Suppose winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. one
    8·1 answer
  • Dyckman Dealers has an investment in Thomas Corporation bonds that Dyckman accounts for as a trading security. Thomas Corporatio
    10·1 answer
  • Suppose there are only two types of goods
    15·1 answer
  • Torid Company processes​ 18,700 gallons of direct materials to produce two​ products, Product X and Product Y. Product X sells f
    15·1 answer
  • Jenna is looking to buy a new computer. When would the price elasticity of demand be most elastic for her computer? Order the si
    8·1 answer
  • In 2019, BayKing Company sold used equipment for $17,000. The equipment had an original cost of $80,000 and accumulated deprecia
    14·1 answer
  • How you will gather and formulate your data
    6·1 answer
  • Chris Anderson bought a Honda Civic for $17,345. He put down $6,000 and financed the rest through the dealer at an APR of 8.6 pe
    10·1 answer
  • Why do companies have to study their environtment first before venturing into new businesses ?
    7·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!