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2 years ago

Describe the difference between cost of goods and operating expenses.

1 answer:

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Both operating expenses and cost of goods sold (COGS) are expenditures that companies incur with running their business. However, the expenses are segregated on the income statement. Operating expenses and COGS measure different ways in which resources are spent in the process of running a company.

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_____ refers to the systematic process of regulating a company's activities to make them consistent with the expectations establ

lukranit [14]

Answer:

Organisational control refers to the systematic process of regulating a company's activities to make them consistent with the expectations established in plans, targets, and standards of performance

Explanation:

Organisational control involves the process of influencing the members of an organisation to work in line with the achievement of the objectives of the organisation. organisational control when properly designed is capable of improving the organisation's performance because it will allow the organisation to effectively execute its strategies.

Organisation control involves setting standards, measuring performance and ensuring that performance conforms with standards and if need be make corrections.

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3 years ago

Suppose that Jane enjoys Diet Coke so much that she consumes one can every day. Although she enjoys gourmet cheese, she consumes

Bas_tet [7]

Answer:

The answer is C.

Explanation:

Necessity goods are the goods or services that a consumer will continue buying whether income falls or the price rises. This type of goods are considered essential. The are not sensitive to price. To Jane, Diet coke is a necessity because she takes it everyday.

While luxury goods are goods that are really not essential. They are owned or bought for the sake of showing wealth or affluence. To Jane, gourmet cheese is a luxury good.

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3 years ago

Sonic Inc. manufactures two models of speakers, Rumble and Thunder. Based on the following production and sales data for June, p

Sonbull [250]

Answer:

Sonic Inc.

a) Sales Budget:

Rumble Thunder

Total units sold 8,550 7,450

Unit sales price $135 $210

Sales value $1,154,250 $1,564,500

b) Production Budget:

Rumble Thunder

Total units sold 8,550 7,450

Desired inventory (units), June 30 299 56

Estimated inventory (units), June 1 260 64

Units to be produced 8,589 7,442

Explanation:

a) Data and Calculations:

Rumble Thunder

Total units sold 8,550 7,450

Desired inventory (units), June 30 299 56

Estimated inventory (units), June 1 260 64

Units Produced 8,589 7,442

Rumble Thunder

Expected sales volume (units):

Midwest Region 3,650 3,200

South Region 4,900 4,250

Total units sold 8,550 7,450

Unit sales price $135 $210

a) The Sonic Inc.'s sales budget determines the production budget. When the quantity to be sold is obtained, then production planning can take place based on meeting customers' demand for goods or services.

b) The Production budget is a bye-product of the sales budget, though, it is critical in the whole value chain. It is the production budget that guides production planning, including the type, design, and other features of the product.

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3 years ago

Hochberg Corporation uses an activity-based costing system with the following three activity cost pools: Activity Cost Pool Tota

Minchanka [31]

Answer:

$2.58 per machine hour

Explanation:

The computation of the fabrication activity cost pool activity rate is

= ($461,000 × 15%) + ($123,000 × 15%) + ($207,000 × 20%) ÷ 50,000 machine hours

= ($69,150 + $18,450 + $41,400) ÷ 50,000 machine hours

= $2.58 per machine hour

5 0

2 years ago

A business issued a 90-day, 9% note for $70,000 to a creditor on account. Illustrate the effects on the accounts and financial s

SSSSS [86.1K]

Answer:

The computation is shown below:

Explanation:

The journal entries are shown below:

a. Account payable $70,000

To Notes payable $70,000

(Being the issuance of the note is recorded)

b. Note payable $70,000

Interest expense $1,575

To Cash $71,575

(Being the payment of the note at maturity date including interest is recorded)

The computation is shown below:

= $70,000 × 9% × 90 days ÷ 360 days

= $1,575

We assume 360 days in a year

Now the effects on the accounts and the financing statement for issuance of the note is shown below:

Balance sheet

Assets = Liabilities + Stockholder equity Income statement cash flow statement

No effect = Account payable - $52,000 + No effect No effect + no effect

Note payable + $52,000

7 0

3 years ago