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agasfer [191]
3 years ago
13

A consistent application of an inventory costing method enhances

Business
1 answer:
ICE Princess25 [194]3 years ago
4 0

C. Comparability.<span> A consistent application of an inventory costing method enhances comparability. Consistency enhances comparability because it enables investors and other end users of the financial statements to compare and understand the financial reports over the periods. The company should disclose the nature, reasons and effects of the change in the Notes to the Financial Statements if there is a change of accounting method for inventory costing to improve financial reporting.</span>

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If the actual output of a piece of equipment during an hour is 500 units and its best operating level is at a rate of 400 units
Vladimir79 [104]

Answer:

d. 1.25

Explanation:

In a business context, the capacity utilization rate is a value that allows the company know how well they are performing compared to what the recorded optimal levels are. In order to calculate this value we simply divide the current operating level for a specific time-period by the optimal level of that same time period, which in this case would be 1 hour. Therefore, in this case we would divide 500 by 400 which would give us 1.25.

6 0
3 years ago
Economics Airlines currently spends $20,000 per month in airport fees and $10,000 per flight for fuel, crew, and airplane mainte
Kamila [148]

Answer:

b. 20

Explanation:

For 5 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (5 X 10000) + 20,000 = $70,000

For 6 flights per month

Total Cost = Variable cost + Fixed cost

Total Cost = Fuel, crew, and airplane maintenance cost + Airport fee

Total Cost = (6 X 10000) + 20,000 = $80,000

Additional Cost for 6th flight = $80000-70,000 = $10,000

Minimum No. of Passenger to cover the cost = Additional cost / Ticket price per seat

Minimum No. of Passenger to cover the cost = $10,000 / $500 = 20 seats passengers.

3 0
3 years ago
The __________ of the procure-to-pay cycle is ordering; the most common way the ordering step begins is through the release of a
GarryVolchara [31]

Answer:

The <u>FIRST STEP</u> of the procure-to-pay cycle is ordering;

Explanation:

The procure to pay cycle  is the set of activities required to follow through a buying process in a company, it includes identifying the need, looking for and assigning a vendor, approving the vendor's specifications, receiving the supplies and finally paying the money owed to the vendor. This process consists of five steps:

  1. ordering
  2. follow up and expediting
  3. receipt and inspection
  4. settlement and payment
  5. records maintenance

6 0
3 years ago
Miltmar Corporation will pay a year-end dividend of $3, and dividends thereafter are expected to grow at a constant rate of 5% p
motikmotik

Part a: The market capitalization rate is 9.25%

Part b: The intrinsic value of the stock is $70.59

Market capitalization rate is another name for the stock's required rate of return. It is called the market capitalization rate because we can infer it by observing the market value of the stock. One way to find this rate is the capital asset pricing model (CAPM).

Part a:

Let,

r = market capitalization rate

f = risk free rate = 5%

m = return on the market = 10%

We can find the market capitalization rate with the help of the capital asset pricing model (CAPM),

r=f+\beta *(m-f)\\ r=0.05+0.85*(0.1-0.05)\\ r=9.25\%\\

The market capitalization rate is 9.25%.

Part b:

Let,

D be the dividend expected = $3

r be the interest rate = 9.25%

g = growth rate of dividends = 5%

The price is given by the dividend growth model:

Price=\frac{D}{r-g}\\ Price=\frac{3}{0.0925-0.05}\\ Price=\$70.59\\

The intrinsic value of the stock is $70.59

Learn more about CAPM:

brainly.com/question/15548553

#SPJ4

8 0
1 year ago
A buyer uses a periodic inventory system, and on December 7, it contacts a supplier to report that some of the merchandise it pu
Degger [83]

Answer:

The journal entry in the books of buyer is as follows:

Explanation:

Accounts Payable A/c.....................Dr   $400

       To Merchandise Inventory A/c......Cr   $400

As the supplier offered him reduction in price instead of taking back the defective goods. So, the accounts payable account will be reduced by the amount which is reduced by the supplier in total amount of goods purchased by buyer. Therefore, the accounts payable account is debited and the account of merchandise inventory is credited.

7 0
3 years ago
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