Answer:
A) Debit Accounts Receivable, $225; credit Fees Earned, $225
Explanation:
Willis owes Jefferson $225 (= 15 hours x $15 per hour).
The accounts receivable is debited because it represents money owed to Jefferson. Since it is an asset account and it increases, it should be debited.
Fees earned is a revenue account and since it increases, it should be credited.
I believe the correct perspectives a business can use in
this case are:
“Profitability and Strategic Fit”
<span>Profitability refers to the degree in which a business
gives off profit or financial gain. While the Strategic Fit expresses the scale
to which an organization is matching its resources with the prospects in the
external environment.</span>
Answer:
Debt to Equity ratio = 2
Explanation:
The debt to equity ratio is a financial ratio to measure the proportion of debt financing in a company's capital structure in relation to the shareholders' equity. The debt to equity ratio can be calculated as follows,
Debt to Equity ratio = Total Liabilities / Total Equity
To calculate the value of total equity, we will use the basic accounting equation which is,
Total assets = Total Liabilities + Total Equity
60000 = 40000 + Total Equity
Total Equity = 60000 - 40000 = $20000
Debt to Equity ratio = 40000 / 20000
Debt to Equity ratio = 2
I would say
division planning
product planning
business planning
corporate planning
Answer:
The answer is $364 (c.)
Explanation:
Non-value-added costs are extra costs incurred in the creation of a product that does not add to the value of the product and the consumers are not willing to pay for. In this example, the effective time for completing an order when functioning at maximum efficiency is 4 hours and the workers are paid $14 per hour, so the total money paid at this 4 hour period is called the value-added cost. Moreover, due to inefficiency, the time for completing an order increased to 5 hours.
Now, let us calculate the total amount spent on completing an order when one order takes 5 hours. This is done thus:
amount paid per hour × hours worked for one order × number of orders
14 × 5 × 26 = $1820. Therefore, $1820 is the total cost incurred to complete 26 orders when they were not functioning at maximum efficiency.
Next, let us calculate the total cost incurred when they functioned efficiently, and it is calculated thus:
amount paid per hour × hours worked for one order × number of orders
= 14 × 4 × 26 = $1456. This is the value-added cost.
Finally, to calculate the non-value-added cost, we will subtract the value added cost from the total cost when extra cost due to inefficiency was added.
∴ non-value-added cost = 1820 - 1456 = $364