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3 years ago

Arden Company reported the following costs and expenses for the most recent month:

1 answer:

8 0

Answer:
1) $141,000
2) $198,000
3) $ 61,000
4) $122,000

Explanation:
1) we sum ($80,000+$42,000+$19,000)= $141,00,0 according to the cost’s theory

2) we sum all amounts (80,000+42,000+19,000+22,000+35,00)= 198,000 we sum all amounts because those are the cost that the company incurred In the period.

3) Conversion cost we obtain summing direct labor+ manufacturing overhead ( 42,000+19,000)= $61,000

4) Prime costs we obtain summing direct materiales+ direct labor ( 42,000+80,000)= $122,000

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Astoria Co. had the following transactions during the month of August 2014: * Cash received from bank loans was $20,000. * Divid

Pie

Answer: $158,000

Explanation:

Equity = Opening equity + Net Income - Dividends

Net Income = Revenue - expenses

= 33,500 - 26,000

= $7,500

Equity = 160,000 + 7,500 - 9,500

= $158,000

3 0

3 years ago

Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces:

Natali [406]

Answer:

Pro Forma Income Statement 30,000 units

Sales($90 * 30,000) $2,700,000

Minus Variable Costs $1,620,000

- Direct Material ($18 *30,000)=540,000

- Direct Labor ($9*30,000) =270,000

- Overhead cost(12.60*30,000)=378,000

- Selling and admin (14.40*30,000)=432,000

Contribution $1,080,000

minus Fixed Costs $378,000

- Manufacturing costs = 270,000

- Selling and admin cost = 108,000

Net Income $702,000

FLEXIBLE BUDGET INCOME STATEMENT

29,000 UNITS 31,000 UNITS

Sales $2,610,000 $2,790,000

Minus Variable costs $1,566,000 $1,674,000

Direct Material $522,000 $558,000

Direct labor $261,000 $279,000

Overhead cost $365,400 $390,600

Selling and Admin cost $417,600 $446,400

Contribution $1,044,000 $1,116,000

Minus Fixed Cost $378,000 $378,000

- Manufacturing cost $270,000 $270,000

- Selling and Admin cost $108,000 $108,000

Net Income $666,000 $738,000

Details 30,000 Units 31,000 Units Variance

Sales $2,700,000 $2,790,000 $90,000 F

Direct Material $540,000 $558,000 $18,000 U

Direct Labor $270,000 $279,000 $9,000 U

Overhead cost $378,000 $390,600 $12,000 U

Selling and Admin $432,000 $446,400 $14,400 U

Total $36,600 F

Explanation:

4 0

3 years ago

The term performance quality refers to: Multiple Choice Customer satisfaction with the total experience of a product or service.

FinnZ [79.3K]

Answer:

The gap between product design specifications and actual performance of the product.

Explanation:

The term performance quality refers to the gap between product design specifications and actual performance of the product.

This ultimately implies that, a performance quality refers to a measure of the level at which the primary characteristics of a product that is being manufactured by a producer operates. Therefore, all the elements of the commitment made in a product that is to be sold to consumers by the producer is the performance quality of a product.

Hence, business firms or companies should endeavor to design a level of performance that is appropriate, effective and efficient to their customers, so as to increase the customer's level of satisfaction and enhance the chances of them using the product in the future.

7 0

3 years ago

Caterpillar's attention was focused elsewhere when komatsu made its first entry into the eastern europe and gained grounds. this

Paul [167]

This is an example of LOOSE BRICKS.
Loose bricks refers to an ignored market segment that a competitor exploited in order to make its initial landing in a foreign market. In this kind of situation, the competitor usually gained ground for itself before the native businesses realizes what is happening.<span />

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4 years ago

How do taxes influence responsible financial planning? Discuss some examples of how taxes may influence a financial plan.

insens350 [35]

Answer:

I will discuss how taxes affect the financial planning of individuals, not businesses.

The whole idea of responsible financial planning is to maximize an individual's wealth, and in order to be able to do this you generally need to minimize your tax liabilities. It doesn't mean that you shouldn't pay your taxes, but rather that the taxes that you owe should be lower.

An example about how this works is when you you invest in stocks. All dividends are taxed as ordinary income, but if you hold a stock for more than one year and then sell it making a profit, you will be taxed at a much lower rate. That is why it is always a good idea to hold stocks long enough for long term capital gains rate to apply. E.g. if you are married and your ordinary taxable income is less than $80,000, you pay 0 taxes for long term capital gains. Even couples earning up to $496,600 will pay only 15%, while their marginal tax rate on ordinary income is 35%. Remember that every cent that you save on taxes, increases your wealth, and a 20% difference is a lot.

Another example are IRA accounts. Contributions to traditional IRA accounts lower your taxable income, which is great. Any interest gained by the account will not be taxed until you retire. This allows your money to grow tax free. E.g. you have $100,000 to invest and you an earn 8% per year. If you do not pay any taxes, in 10 years you will have $100,000 x 1.08¹⁰ = $215,894.50. But if you pay a 24% tax rate on your gains, then you will only have $100,000 x [1 + (0.08 x 0.76)]¹⁰ = $180,441.

In order to reduce your taxes, you might sometimes need to postpone or accelerate some expenses or donations. E.g. you generally donate $3,000 to church, it is December and you are getting ready to sign a check. But you then realize that your current tax bracket is 12%, but since you got a raise, next year you will pay 24%. It is a good idea to write the check on January 2, since you will save $3,000 x (24% - 12%) = $360 in future taxes.

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3 years ago

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