Which of the following is a disadvantage of the sole proprietorship form of ownership

ncome Statements under Absorption Costing and Variable Costing Gallatin County Motors Inc. assembles and sells snowmobile engine

Mnenie [13.5K]

Answer:

Income statement according to the absorption costing

Sales 2,600,000

Less Cost of Goods Sold

Opening Stock 0

Add Cost of Goods Manufactured

Direct materials 1,218,000

Direct labor 522,000

Variable factory overhead 87,000

Fixed factory overhead 130,500

Less Closing Stock (1,957,500/4,350)×350 (157,500) 1,800,000

Gross Profit 800,000

Less Period Costs :

Selling and administrative expenses:

Variable selling and administrative expenses (60,000)

Fixed selling and administrative expenses (25,000)

Net Income 715,000

Explanation:

Product/Manufacturing Cost - Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads

Period Cost - Absorption Costing = All Non - Manufacturing Costs

7 0

3 years ago

When a service organization provides services that affect the initiation, execution, processing, or reporting of a user company'

chubhunter [2.5K]

Those services are considered to be part of the user company's information system.
The information system obviously provides relevant information about something - given that here services are given which may have an effect on the initiation, execution, processing, or reporting of a user company's transactions, they do belong to the information system of that company.

8 0

4 years ago

Of all students who do not complete high school cannot find work

Ket [755]

I think it might be B

3 0

3 years ago

Read 2 more answers

When the perpetual inventory method is being used, the accountant debits __________ __________ and credits Accounts Payable (or

777dan777 [17]

Answer:

merchandise inventory

Merchandise inventory

Explanation:

When the perpetual inventory method is being used, the accountant debits merchandise inventory and credits Accounts Payable (or Cash) when goods are purchased and debits Cost of Goods Sold and credits merchandise inventory when gods are sold, along with the proper sales entry.

The cost of each sale transaction ensures that the merchandise inventory account under a perpetual inventory system reflects the updated cost of merchandise available for sale.

4 0

3 years ago

True or False: The Law of One Price states that in competitive markets free of transportation costs and barriers to trade (such

sukhopar [10]

Answer:

It is False

The law of one price (LOOP) states that in the absence of trade frictions (such as transport costs and tariffs), and under conditions of free competition and price flexibility (where no individual sellers or buyers have power to manipulate prices and prices can freely adjust), identical goods sold in different.

4 0

3 years ago

Read 2 more answers