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kondaur [170]
3 years ago
5

On January 1, 2016, Elite Advertising was contracted to run a marketing campaign for Pharm King's new dieting pills. In addition

to getting a base fee of $150,000 for the 3-year campaign, Elite also may get an additional 5% of the base fee as a bonus if a targeted sales level is reached at the end of three years. Elite currently lacks sufficient information to make an estimate of the likelihood of the expected bonus, with the marketing director indicating that "If you forced me to make an estimate, I'd say we have a 50/50 chance. But don't quote me on that - it's really too early to tell." Elite concludes this contract qualifies for revenue recognition over time, and estimates variable consideration using the most likely amount. How much revenue should Elite recognize as of December 31, 2016? A. $50,000B. $51,250C. $52,500D. $57,500
Business
1 answer:
stepladder [879]3 years ago
8 0

Answer:

A. $50,000

Explanation:

150,000 for a 3 year compaing  = 50,000 per year

<u>The contract has just started </u>and the information available doesn't meet the criteria.

We must remember that <u>accounting has a principle of conservatism</u> regarding revenues. Accrue revenue without proper grounds is not correct. We should recognize the 1/3 of the base fee which is earned and matched the accounting cycle.

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Prepare the journal entries to record the assignment of direct materials and direct labor and the allocation of manufacturing ov
rosijanka [135]

Answer:

Note: The full question is attached below

Date      Accounts Title and Explanation        Debit     Credit

Mar-31   WIP-Fermenting Department            $15,971

                     Raw Material Inventory                                $9,288

                     Wages payable                                             $3,305

                     Manufacturing Overhead                             $3,378

              (Being cost assigned to WIP-Fermenting department)

3 0
2 years ago
A project manager can identify the skills needed for the project from the:
Katarina [22]

Answer:

D - work breakdown structure

Explanation:

A detailed work breakdown structure should entail the job description, specific skills required, work experience recommended as well as the number of people required to carry out the task, should it require more than one. the project manager should then be able to identify the skills needed that he/she would have to go out and seek internally or from the public. Departmental personnel listings may not necessarily relate to the project and a budget will not state who does what, only the finances set aside for the project and its deliverables. A stakeholder meeting usually is for the end user stating what he/she expects the end product to be like. the project manager may be able to pick up a few skills requirements from that but that would only be surface level information. A detailed work breakdown structure will give him/her what is needed to plan, begin, continue and end the project efficiently.

7 0
3 years ago
According to the human-capital view, education
lana66690 [7]

According to the human-capital view, education is an indicator of natural ability.  Human capital encompasses assets such as education, training, intelligence, skills, health, and other characteristics valued by employers such as loyalty and punctuality. As such, it is an intangible asset or characteristic that does not (and cannot) appear on a company's balance sheet.

Human capital is thought to boost productivity and consequently profitability. The more a firm invests in its personnel, the more likely it is to be productive and successful. Because not all labor is created equal, firms can develop human capital by investing in employers training, education, and perks.

To learn more about human-capital, click here.

brainly.com/question/28244215

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6 0
2 years ago
Negotiated transfer prices ______. are consistent with decentralization use the expertise of managers in weighing the costs and
ruslelena [56]

Answer:

1. are consistent with decentralization.

2. use the expertise of managers in weighing the costs and benefits of the transfer.

3. preserve the autonomy of the divisions.

Explanation:

A negotiated transfer prices can be defined as the final price reached between the buyer (consumer) of finished goods and services and the trader (seller) of such goods and services.

Negotiated transfer prices has the following advantages;

1. Negotiated transfer prices are consistent with decentralization.

2. Use the expertise of managers in weighing the costs and benefits of the transfer.

3. They preserve the autonomy of the divisions.

4 0
3 years ago
Which of the following would be an advantage of engaging in international
lbvjy [14]

Answer:

B. Larger growth opportunities based on market size

Explanation:

Took the test and guessed it correctly

4 0
3 years ago
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