Answer:
a. Cost cutting may lead to the loss of desirable features
Explanation:
In the business market, sometimes there occurs a price war between the various companies regarding the same type product and each company reduces the price to as minimum as possible to take the cost leadership in the market. Some drawbacks that occur in such a strategy of companies are listed here -
- There is a tight control on the expenses during the manufacturing of products which often results in loss of desirable features in the products
- No new innovations are made as companies focus mainly of the current product
- The feedback of customers seem to be of no importance in such conditions
- This strategy promotes the lower quality products in the market
Answer:
Explanation:
Direct labor and factory overhead
Answer:
Explanation:
Sale Value 1500000
less:Adjusted basis (1000000-89765) 910235
a)Gain recognized 589765
b) in case of sale of real property,cooperates are subject to section 291 to recapture.According to section 291,cooperates taxpayers to recaptures 20% of the lessor of the gain recognized or accumulated depreciation taken.
The recaptured gain is taxed as ordinary gain.
The remaining gain is taxed as section 1231 gain.
Section 1231 Gain (589765-17953) 571812
Section 1250 recapture due to section 291 (89765×20%) 17953
Answer:
=$434
Explanation:
FUTA and SUTA tax rate are applied to the first $7,000 of an employee's pay. Here the employee earned $8,900 but we will only tax the $7,000 due to the pre-condition of taxing the initial $7,000 amount.
FUTA tax rate = 0.8%
SUTA tax rate = 5.4%
Taxable pay = $7,000
Payable Tax = 7000(0.8%) + 7000(5.4%)
= 56 + 378
=$434
The amount of total unemployment taxes the employer must pay on this employee's wages is $434.
The debit balance at the end of the fiscal year becomes a remaining amount of the revenue (expense) or a deficit from the estimated revenue. This is reported on the income statement and followed on the next report that should be addressed on to the future revenue.
