The traditional economies' law of production depends only on
agriculture, fishing, hunting, gathering or some combination of the above
mentioned. They only use barter instead of money. Meanwhile, there are
consequences of the traditional law of production because they are vulnerable
to change in nature especially the weather. For this reason, traditional
economies limit population growth. When the harvest or hunting is poor, people
will definitely get starve. Those societies often consume the natural resources
they will depend on or wage war
Answer: The correct answer is "C. The total effective interest over the term to maturity is equal to the amount of the discount plus the total cash interest paid."
Explanation: When the bonds are issued at a discount, in the bond amortization schedule the total effective interest over the term to maturity is equal to the amount of the discount plus the total cash interest paid.
Answer:
The employee groups that deserve praise or may be subject to criticism for the total variable expenses flexible budget variance and the total fixed expenses flexible budget variance depends <em>on the factors that derives the overall variance which are production variances versus selling and administrative variances, including the separate variances that effect them on an individual basis.</em>
Explanation:
In order to determine the employee group that deserves praise or criticism, each part of the budget must be looked at separately. The overall flexible budget may be favourable or unfavourable, however, the result of which might be due to production and/or selling & administrative budget being favourable or unfavourable. Details of which is shown below:
Production budget is derived from the result of total direct materials variance, total manufacturing overhead variance and total labour variance. When we go further the direct material variance is the result of direct material cost variance, which is under the supervision and responsibility of <u>purchasing manager</u>, and direct materials efficiency variance, which is controlled by the <u>production manager</u>.
The total direct labour variance is the result of the direct labour cost variance, which is handled by the <u>human resource manager</u>, and direct labour efficiency variance, which is also under the supervision of <u>production manager</u>.
The total variable manufacturing overhead variance is the result of variable overhead cost and efficiency variance, both of which is controlled by the <u>production manager</u>. While in the case of fixed overhead variance which is the result of fixed overhead cost variance, handled by the <u>production manager</u>, and fixed selling and administrative variance, which is being controlled by the <u>marketing and/or sales manager</u>.
Determining the effect of each variance (whether favourable or unfavourable) is the result of determining the whether and by how much an employee is to be praised or criticised.
Answer:
Kindly check attached picture
Explanation:
1. Calculate the activity rates for each of the three overhead activities.
2. Prepare job-order cost sheets for each job showing all costs through July 31.
3. Calculate the balance in Work in Process on July 31.
4. Calculate the cost of goods sold for July.
5. What if Job 13-46 required no engineering change orders? What is the new cost of Job 13-46? How would the cost of other jobs be affected?
Kindly check attached picture for detailed explanation
Answer:
52.5 units
Explanation:
Contribution margin per unit:
= (Sales price per unit - variable cost per unit)
= $6,000 - $4,800
= $1,200
Unit sales to attain target profit:
= (Fixed expense + Target profit) ÷ Contribution margin per unit
= ($14,000 + $49,000) ÷ $1,200
= 52.5 units
Hence, 52.5 units are required to earn a profit of $49,000.
