Option B, Company B uses just in time inventories and produces made to order products as and when customer demand rises.
<u>Explanation:</u>
A cost leader is the business unit that induces the cost increase. Cost driver is any factor that causes an operation price transition.
Examples of cost drivers are: direct work hours of labour.
The analysis of the value chain can assist companies in different ways.
This can create changes within a company, the goods, services and links it offers to other companies and customers. The US Postal Service (USPS) describes that the aim of the assessment of the value chain is to "make value that exceeds the cost and produces gross margin."
A consequence of paying most or all of a salesperson's compensation in the form of commissions is It encourages the salesperson to focus on closing the sale.
A sales commission is a payment made to an employee after they successfully complete a task, typically selling a predetermined volume of goods or services. Sales commissions are a common incentive used by employers to boost employee productivity. A commission can be paid instead of or in addition to a salary.
A commission is a fee a broker or investment advisor charges for handling a client's purchases and sells of securities or for offering financial advice.
Learn more about commissions here
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Answer:
$159,000
Explanation:
We are going to compute an A which is equivalent to $100,000 at the end of 10 years.
Therefore:
A= $100,000 (A/F, 5%, 10)
= $100,000 (0.0795) = $7,950
Infinite series is :
P= A/i= $7,950/0.05= $159,000
Therefore the money needed is $159,000
Answer:
See explanation section.
Explanation:
December 31, 2017
Bad debt expense Debit = $17,600
Allowance for Doubtful Account Credit = $17,600
To record the bad debt expense
Calculation: Bad debt expense = $250,000 × 8% = $20,000. However, we cannot take this amount because Allowance for Doubtful Account is a positive contra entry, which has a $2,400 credit balance. Therefore, we have to deduct $2,400 from $20,000 to get the actual bad debt expense.
If Petty Cash is not replenished at the end of the accounting period:
- the balance sheet would show an overstated cash asset.
- expenses would not be recorded in the period in which they were incurred.
- the income statement would reflect a net income amount that was too high.
<h3>What happens when petty cash is not replenished?</h3><h3 />
Because the cash that was meant to go to the petty cash was not taken from the cash account, this account will have more than it should (overstated).
The expenses which were incurred and recorded in the petty cash would not be accounted for which means that the income would be overstated as these expenses were not deducted from it.
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