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4 years ago

Cost Drivers for Support Department Allocations

Business

1 answer:

Papessa [141]4 years ago

6 0

Answer:

In identifying a cost driver one should consider the extent to which a cost or a pool of costs varies in accordance with the cost driver. The higher the correlation between cost and the cost driver the more accurate will be the resulting of the understanding of cost behaviour.

Support Department Cost Driver/Cost drivers

a. Accounts Receivable / Number of sales invoices

b. Central Purchasing /Number of purchase requisitions

c. Computer Support /Number of computers

d. Conferences /Number of conference attendees

e. Employee Travel / Number of travel claims

f. Payroll Accounting /Number of payroll checks

g. Telecommunications /Number of cell phone minutes used

h. Training /Number of employees trained

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On January 5, Thomas Company, which follows a calendar year, issued $1,000,000 of notes payable, of which $250,000 is due on Jan

Norma-Jean [14]

Answer:

The December 31 balance sheet should show the following liabilities:

Current liabilities:

Current portion of notes payable $250,000

Long term liabilities:

Notes payable $750,000

Current liabilities include all the liabilities that are due within one year of the presentation of the balance sheet. While long term liabilities include all the liabilities that are due in more than one year.

Even if the total liability is due in more than one year, but a tranche or installment is due within one year, this must be included as current portion of long term liability under current liabilities.

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3 years ago

Read 2 more answers

The process of analyzing customers who have stopped buying to determine why is known as customer behavior modification

baherus [9]

The question is about a statement relating to customer behaviour. The statement can be true or false.

Customers are King. It is rightly said in the marketing term because customer has all the rights to buy or not.

A sales person of marketing expert can only guide a customer about a product but he can not force him to make a buy decision if a customer is not willing to do so.

The process of analyzing customers who have stopped buying to determine why is known as Customer Defection Analysis, not customer behaviour modification.

The given statement is False.

Learn more at brainly.com/question/16362980

6 0

3 years ago

Clay Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are ava

mote1985 [20]

Answer:

$ 10

Explanation:

Given:

For Bedford lamp

Sales price = $ 26

Variable cost = $ 16

Machine hours required per unit = 1

Now,

the contribution margin per unit = Sales price - Variable cost

= $ 26 - $ 16

= $ 10

therefore,

the contribution margin per machine hour is calculated as:

= contribution margin / machine hours

= $ 10 / 1

= $ 10

hence,

the contribution margin per machine hour for the bedford lamp is $ 10

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3 years ago

Gut Bombs sandwich shop pays $5,000 a month in rent space and equipment. It pays each of it 10 workers $2,500 a month and spends

Vadim26 [7]

Answer:

Fixed cost per units= $2.14

Explanation:

Giving the following information:

Rent= $5,000

Direct labor= $2,500

Usually, direct labor is a variable cost that varies with production. In this case, I will consider it a fixed cost.

First, we need to calculate the total fixed costs:

Total fixed cost= 5,000 + 2,5000= 7,500

Now, the fixed cost per unit:

Fixed cost per units= 7,500/3,500

Fixed cost per units= $2.14

6 0

3 years ago

Ireland Corporation obtained a $40,000 note receivable from a customer on June 30, 2021. The note, along with interest at 5%, is

Daniel [21]

Answer:

$ 39,165.00

Explanation:

the amount expected from customer in one year is the face value of the note receivable plus interest i.e $40,000*105%=$42,000

The interest on discounting is :

$42,000*9%*9/12=$2,835

The amount of cash that Ireland would receive from the Cloverdale Bank is the amount that Cloverdale would on maturity of the note receivable i.e $42,000, less the discount on the note of $2,385

cash received=$42,000-$2,835=$ 39,165.00

Cloverdale would pay $ 39,165.00 on September 2021 to Ireland Corporation

8 0

4 years ago