Answer:
$900
Explanation:
Given that
Total repair up to end of year = 12
Estimated need to be repaid = 8
Average cost = $45
The computation of warranty expense for the current year is shown below:-
For computing the warranty expense for the current year first we need to find out the total repaired cost which is here below
Total repaired cost = Total repair up to end of year + Estimated need to be repaid
= 12 + 8
= 20
Warranty expense for the current year = Average cost × Total
= $45 × 20
= $900
Therefore for computing the warranty expense for the current year we simply applied the above formula.
Answer:
B. Journal entry-level
Explanation:
When using ABC, costs can be gathered at different levels. These levels are all of the following except "journal entry-level".
Therefore, costs can be gathered in Unit-level, Batch-level, Factory-level and even Product level.
Activity-Based Costing (ABC) is actually a costing method which tends to identify the activities that are carried out in organization and gives the costs of each activity to the products and services by what they actually consume.
Answer:
Exxon's response worsened its public standing.
Explanation:
Crisis management is the application of game plan to help an organization deal with a sudden and significant negative event.
The Exxon's response is a perfect example of how company should apply thoughtful response in crisis management because Exxon corporation failed to follow several well-established procedures thereby damaged its public standing, failed to seize control of developments after the spill and sending lower-ranking executive to address the situation instead of the chairman going there himself to take control of the situation in a possible way.
The action taken by Exxon led to the impression that the company disregard pollution problem by not involving top management.
Answer
Miguel must set aside $62,745 annually
Explanation
N = Number of years till Miguel would retire = 43 years
FV = Future Value = $1,000,000
r = Interest rate = 10%
PMT = Annual payments (at the ending of the year) = ?? The question asks us to calculate this
We would use the future value ordinary annuity formula to calculate PMT
FV = PMT ![[\frac{(1+r )^{N} -1}{r} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B%281%2Br%20%29%5E%7BN%7D%20-1%7D%7Br%7D%20%5D)
1000000 = PMT ![[\frac{(1+0.10 )^{10} -1}{0.10} ]](https://tex.z-dn.net/?f=%5B%5Cfrac%7B%281%2B0.10%20%29%5E%7B10%7D%20-1%7D%7B0.10%7D%20%5D)
PMT ≅ $62,745
Miguel must set aside $62,745 annually
Answer:
The correct answer is option B.
Explanation:
In 2017, Lynx earned an accounting profit of $3 million.
Lynx's production facilities might have also been used to produce components for mobile phones, which would have generated $2 million in revenues and saved the company $500,000 in production costs.
The accounting profit involves only explicit costs. While economic profit includes both explicit as well as implicit cost.
Here, the implicit cost is the opportunity cost of producing toys components. Lynx could have earned greater profit if it produced components for mobile phone and also could have saved cost of production.
Economic profit
= accounting profit - implicit cost
= $3 million - ($2 million + $500,000)
= $3 million - $2.5 million
= $500,000
So, Lynx had an economic profit of $500,000.
