Incremental Analysis for Discontinuation Decision can have two way affect to the Business
Explanation:
1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues
Less:
2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.
Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.
Answer:
b. $24 per pound
Explanation:
prouct B product C differntial analysis
sales price 31 57 26
cost 29 29+24= 53 -24
contribution 2 4 2
The differential cost will be the diference in total cost for product b and c.
It is given in the assingment "additional cost of $24"
And the differential analysis prove it right.
Answer:
The correct answer is "Closing entries"
Explanation:
Closing entries, commonly named as closing journal entries, are records produced at the close of an accounting period to transform in 0 "zero" all temporary accounts. Usually is the balance is transferred to permanent accounts. It is used to close the temporary accounts and reset the balance every end of period.
Answer: b. Open Item
Explanation:
The statement that Heather wants to help a client send out is to include unpaid invoices, unapplied payments, and Credit Memos which are essentially signs that the creditor has not been paid.
An open item statement would therefore work best because it is to include open accounts that are yet to be paid so will include all those entries described above.
Answer:
First let us define the nature of each of the following as per Balance sheet of a company:
Payroll payable- Liability
FICA taxes withheld- Liability
Federal taxes- Liability
410(k)- Liability
Explanation:
Effect of Transaction on assets and liabilities:
- Payroll expense Debit will have no impact
- Payroll payable, Federal taxes, FICA and 401(k) will increase the current liability.
- And when they are subsequently paid, cash will be credited hence decreasing the current assets and all these current liabilities shall be debited, hence decreasing the current liability portion.
