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3 years ago

He primary objective of activity-based management is

1 answer:

4 0

The primary objective of ABM or activity-based management is a method to access a business and figure out it's strengths and weaknesses to strategically fix problems.

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purchased a new piece of equipment for its research lab on January 1, 2015 for $45,200. The equipment is expected to have a usef

Murljashka [212]

Answer:

The gain recognized on the equipment is $6,550

Explanation:

A straight-line depreciation method distributes depreciation costs evenly throughout the useful life of the equipment, and depreciation per year using this method is calculated thus:

Depreciation per year = (Cost of equipment - salvage value) ÷ useful life

= (45,200 - 6,100) ÷ 4 = 39,100 ÷ 4 = $9,775

This means that each year, the machine depreciates by a value of $9,775.

Next, we are given that the machine was sold for $32,200 after two years, to determine if a profit or loss was made, we will calculate the expected residual value after two years, and find the difference between this value and the selling price. The residual value is calculated thus:

Residual value = Cost of equipment - (depreciation per year × number of years used)

Residual value = 45,200 - ( 9,775 × 2 )

Residual value = 45,200 - 19,550 = $25,650

Difference between residual value and selling price = 32,200 - 25,650 = $6,550 (profit was made since the selling price was higher than the value of the equipment)

8 0

3 years ago

Which of the following best describes a trial balance?

Lubov Fominskaja [6]

Answer:

Explanation:

In the accounting process extracting a trial balance is the final step.

8 0

3 years ago

Kreter, Inc. earned net income of $300,000 last year. This year it wants to earn net income of $450,000. The company's fixed cos

Minchanka [31]

Answer:

sales is $2,500,000

Explanation:

The target sales for the company to achieve a net income of $450,000 in the current year equals the net income plus variable cost plus the fixed costs.

To understand this better,let us use the net income formula:

net income=sales-variable costs-fixed costs

by changing the subject of the formula,we the formula for sales:

sales=net income+variable costs+fixed costs

variable costs=sales*70%=0.7 sales

sales=$450,000+$300,000+0.7 sales

sales-0.7 sales=$750,000

0.3 sales=$750,000

sales=$750,000/0.3=$2,500,000

8 0

3 years ago

The following is the stockholders' equity section of Harbor Co.'s balance sheet on December 31: Common stock $10 par, 100,000 sh

Murljashka [212]

Answer:

The book value of shares is $10

Explanation:

The balance of shareholders equity is $2,200,000.This comprises of retained earnings of $800,000 and Issued Share Capital of $1,400,000(for 140,000 units of shares)

To ascertain the unit of shares,see below:

45000units= $450,000

15000units reacquired at $150,000

Which also means that $1,100,000 is for 110,000units of shares.

In each of these cases highlighted above share price is $10

for instance:$450,000/45000shares=$10

$150,000/15000=$10 e.t.c

8 0

3 years ago

Explain how government actions affect a circular flow model of a mixed economy.

vekshin1

A circular flow economy includes buying and selling between businesses, households, and governments.

The government takes money in through taxes and tariffs, and has expenditures on things like roads, military spending, and other federally funded programs. In this way the government both gives and takes in the economy.

3 0

3 years ago