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dusya [7]
4 years ago
10

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  

You might be interested in
The 2021 income statement for Anderson TV and Appliance reported net sales of $260,000 and net income of $75,000. Average total
slavikrds [6]

Answer:

profit maring: 28.84%

ROA 15%

ROE 17.75%

Explanation:

profit margin:

\frac{income}{sales}

75,000 / 260,00 = 0,28846 = 28.84%

return on assets ROA

\frac{income}{assets}

75,000 / 500,000 = 0.15

return on equity: ROE

\frac{income}{equity}

average equity:

ending= beginning + income - dividends

400,000 + 75,000 - 30,000 = 445,000

(400,000 + 445,000) / 2  = 422,500

75,000 / 422,500 = 0,17751 = 17.75%

8 0
3 years ago
Midyear on July 31st, the Andrews Corporation's balance sheet reported: Total Liabilities of $81.319 million Cash of $8.040 mill
hoa [83]

Answer: $104.369 million

Explanation:

Given that,

Total Liabilities = $81.319 million

Cash = $8.040 million

Total Assets = $190.768 million

Total Common Stock = $5.080 million

Therefore,

                     Total assets = Total liabilities + Total stockholders' equity

              $190.768 million = $81.319 million + Total stockholders' equity

Total stockholders' equity = $190.768 million - $81.319 million

                                            = $ 109.449 million

Total stockholders' equity = Total common stock + Retained earnings

Retained earnings = Total stockholders' equity - Total common stock

                                = $ 109.449 million - $5.080 million

                                = $104.369 million

6 0
3 years ago
The level of aggregate supply in the long-run is not affected by:a) changes in technology.b) changes in the capital stock.c) cha
mixas84 [53]

The correct answer is choice c, changes in the price level.

Aggregate supply is only affected by capital, labor, and technology in the long run because everything in the economy is assumed to be used optimally. Of the options that are presented, the only option that is not capital, labor or technology is the change in price level, which makes it the correct answer.

3 0
4 years ago
(I) Because interest rates on Treasury bills are more volatile than rates on long-term securities, the return on short-term Trea
Fittoniya [83]

Answer:

B) (I) is false, (II) true.

Explanation:

The interest rate of longer-term securities is usually higher than the interest rate of short-term securities because more risk is associated with the longer-term securities. An example of the risks associated with long-term securities is that it possible for inflation to make value of the payment to fall. Another risk is when there is a rise in the interest rate which usually lead to a fall in the bond prices.  

Treasury STRIPS refers to bonds that are offered for sale at a discount to their face value. Their major attribute is that they do not pay interest to investors but the full face value of the bonds is paid to the investor when the bonds mature. This means the bonds mature at par.

The full meaning of STRIPS is Separate Trading of Registered Interest and Principal of Securities, and they are types of bonds that are commonly referred to as zero-coupon bonds because no interest or coupon is paid by them.

From the above, we can see that (B) is the correct option in the question. That is, (I) is false, (II) true.

5 0
3 years ago
Lucky Louie qualified for a $250,000 mortgage for his new home. The loan application was $400, closing attorney fee $500, apprai
Vesna [10]

Answer:

Louie's total cost is $ 7,625.

Explanation:

Closing costs are fees associated with your home purchase that are paid at the closing of a real estate transaction. Closing is the point in time when the title of the property is transferred from the seller to the buyer. In the above question all cost mentioned in question meet defination of closing cost.\

For more info please refer to below given calculation.

Loan application = $ 400

Attorney fee = $ 500

Appraisal fee = $ 400

Title insurance = $ 1200

Doc Fee  = $ 75

Credit fee = $ 50

Fee and interest = (250000*0.02)= $ 5000

Adding all above we get $ 7,625.

7 0
3 years ago
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