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valina [46]
3 years ago
8

An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting

principles because: A. some manufacturing costs (i.e., the costs of idle capacity and organization-sustaining costs) will not be assigned to products. B. some nonmanufacturing costs are assigned to products. C. first-stage allocations may be based on subjective interview data. D. all of these are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.
Business
1 answer:
igomit [66]3 years ago
8 0

Answer: The correct answer is "D. all of these are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles.".

Explanation: The ABC system obtains enough information to understand what the true inducers of costs are and act on them.

This system is based on the fact that the products consume activities and the activities resources (costs). Thus, if you have information on what each activity costs and what activities are necessary for the generation of each product, then you can know how much each product costs from the activities that constitute it, and so you can make an evaluation of the ability to generate value of these activities and an analysis of the processes to eliminate those unnecessary activities that do not add value to the product.

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Travis borrowed $10,000 four years ago at an annual interest rate of 7 percent. The loan term is six years. Since he borrowed th
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Answer:

The answer is A

Explanation:

The loan is an interest only loan since he is only paying the interest potion of 7%

Interest only loan is when the borrower pays only the interest for some or all the term of the loan with no changes in the borrowed amount

5 0
3 years ago
Which of the following statements about advertising is most accurate? Advertising is the least costly form of promotion because
jek_recluse [69]

Answer:

The correct answer is letter "E": Through advertising, a company can control, to some extent, to whom the message is sent.

Explanation:

Advertising is the main key to Marketing by which companies promote their goods or services in an attempt to attract a target population. However, the process of determining what advertising technique a firm will use is not that simple. A series of psychological approaches are used to reach consumers strategically.

<em>Companies at a certain level, manage their marketing audience. Though, different mediums of communication allow people of all kinds, not necessarily the company's target population, to be aware of the promotion somehow.</em>

8 0
3 years ago
The most recent data from the annual balance sheets of Free Spirit Industries Corporation and LeBron Sports Equipment Corporatio
shutvik [7]

Answer:

Free Spirit Industries Corporation and LeBron Sports Equipment Corporation

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is 1.3337 : 1 and 0.7469 : 1 respectively.

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is 1.6596 : 1 and 0.9294 : 1 respectively.

2. True: Free Spirit Industries Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Corporation.

3. True: A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.

4. True: An increase in the current ratio over time always means that the company’s liquidity position is improving.

Explanation:

a) Data:

Balance Sheet December 31st (Millions of dollars)

LeBron Sports Equipment Corporation   Free Spirit Industries Corporation

                             LeBron   Free Spirit                             LeBron   Free Spirit

Assets                                                        Liabilities

Current assets                                        Current liabilities

Cash                            $1,435      $922     Accounts payable         $0    $0

Accounts receivable      525         338      Accruals                       316      0

Inventories                   1,540         990      Notes payable          1,793   1,687

Total current assets $3,500   $2,250 Total current liabilities $2,109$1,687

Net fixed assets                                          Long-term bond      2,578 2,063

Net plant & equipment 2,750 2,750         Total debt             $4,687 $3,750

                                                                    Common equity

                                                                    Common stock     $1,016     $813

                                                                    Retained earnings   547       437

                                                            Total common equity $1,563  $1,250

Total assets      $6,250 $5,000 Total liabilities and equity$6,250 $5,000

b) Current Ratio and Quick Ratio:

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = (Current Assets - Inventory)/Current Liabilities

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is

Current Ratio = $2,250 / $1,687 = 1.3337 : 1

Quick Ratio = ($2,250 - 990) / $1,687 = 0.7469 : 1

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is:

Current Ratio = $3,500 / $2,109 = 1.6596 : 1

Quick Ratio = $3,500 -1,540 / $2,109 = 0.9294 : 1

5 0
3 years ago
An insurance company forwards fixed annuity premiums to their general account, where the money is invested. The guaranteed minim
tatyana61 [14]

Answer: c. 3%

Explanation:

The Insurance company guaranteed that the minimum rate that they will pay their policyholders as 3%. Just because the investments are now drawing only 2.5% due to the economic downtown does not absolve them of this agreement.

They must therefore still pay their policy holders the minimum return guaranteed which is 3%.

3 0
3 years ago
Sponsors often advertise their own brands alongside the athlete’s or entertainer’s.
Gemiola [76]
Yea. Like with Nike always being next to Lebron or Curry with Under Armor.
8 0
3 years ago
Read 2 more answers
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