Answer:
55,000 Credit balance
Explanation:
Mango Company
Predetermined overhead rate /Estimated overhead cost
= $600,000 / $300,000
Estimated direct labor cost = 200%
Applied overhead :
=Actual direct labor cost of $335,000 × 200%
= $670,000
Overhead incurred-Overhead applied
$615000 – $670,000
=$55,000
Therefore At year-end, the balance in the Factory Overhead account is a: credit of $55,000
Answer:
a. Describe how the average accounting return is usually calculated and describe the information this measure provides about a sequence of cash flows. What is the AAR criterion decision rule?
Average accounting return = average net income / average investment
The problem with AAR is that net cash flows are not equal to net income since depreciation expense and changes in net working capital are not accounted for by AAR.
The criterion decision rule is that projects with an AAR above a certain measure.
b. What are the problems associated with using the AAR as a means of evaluating a project’s cash flows? What underlying feature of AAR is most troubling to you from a financial perspective? Does the AAR have any redeeming qualities?
it doesn't consider net cash flows, nor time value of money. Personally, accounting is an extremely important tool but it only reflects a partial perspective of a business. E.g. a business might have a huge net income but if it doesn't have enough cash to function, it will go bankrupt. In finance, cash is king.
Personally, my biggest problem with AAR is that it doesn't consider net cash flows. I've been on situations where the company I worked for was apparently doing great, but our accounts receivables were huge and we couldn't collect money fast enough. My job was basically go to different banks and convince them of loaning us cash. The worst part was that even without being able to collect cash, we still had to pay taxes and that was another huge problem.
I believe that AAR is still used because of its simplicity. Also, taxes are paid based on accounting profits and many firms base they compensation plans on them.
Answer:
If the rose bushes were not listed as an exclusion the Buyers have the right to cancel the agreement.
Explanation:
Based on the information provided within the question it can be said that the best scenario for this situation would be If the rose bushes were not listed as an exclusion the Buyers have the right to cancel the agreement. That is because they saw the bushes before making the purchase and if they were not added as an exclusion, meaning that they were not included with the house and would be removed, then they have a valid reason for cancelling.
An entrepreneur looking for financing to get her small, personally-owned business up and running should probably consider a venture capital
.
Option D
<u>Explanation:
</u>
Venture capital (VC) is a method of funding that is made available to micro, early-stage and developing businesses by corporations or funds with a high potential for success or development (within employee numbers, annual income, or both).
Example:
Pepperfry, India's biggest furniture e-market brought up USD 100 million in a New session funding led by Goldman Sachs and Zodius Technology Fund. Pepper fry is expanding its emissions by adding to its increasing fleet of supply automobiles in Level III and Level IV cities.
This will also open up new distribution centres and extend its network of carpenters and assemblies. This is a business based e-commerce player's first quantum expenditure in India.
