Building piles of documents is an efficient way to organize.<br><br> True or False

astra-53 [7]

Answer: The answer is as follows:

Explanation:

M1 = Currency with public + Checkable deposits + Other deposits with RBI

M2 = M1 + Post office savings deposits

Currency held by the public and Checkable deposits are the components of M1.

Whereas savings deposits, Money market mutual funds held by individuals and Small time deposits are the components of M2.

We know that all the components of M1 are also the components M2.

∴ The items are included in the M2 money supply but not the M1 money supply are as follows:

Item 1 - Money market mutual funds held by individuals

Item 2- Savings deposits, including money market deposit accounts

Item 5 - Small time deposits

8 0

3 years ago

Johnson Superior Products Inc. produces hospital equipment and the setup requirements vary from product to product. Johnson prod

Oduvanchick [21]

Answer:

D) Johnson has failed to use the correct cost driver as the cost-allocation base for setup costs.

Explanation:

One of the main disadvantages of ABC costing method is that it is very hard and expensive to implement, and sometimes you cannot allocate all overhead costs to specific cost drivers. That is what happened here with Johnson's costing method, they combined two cost drivers and allocated resources using the number customer orders which is not a valid base, e.g. one single large order represents higher costs than 10 small orders.

ABC costing is not accepted by US GAAP due to its limitations or how hard it is to apply correctly, but it is a very useful information source for making decisions. The problem is, if gathering the information is worth the effort and extra cost of ABC?

8 0

4 years ago

If you spend $250,000 on a new car and it

Rasek [7]

It will be worth $105468.75.

If it depreciates 25% each year, that means 75% of the value remains.

The value of the third year is $140,625.

$140,625(.75) = $105,468.75.

You could also find 25% of $140,625 and subtract it.

$140,624(.25) = $35,156.25
$140625 - $35,156.25 = $105,468.75.

Either way the car would be worth $105,468.75 in year four!

3 0

3 years ago

Adamson Company manufactures four lines of garden tools. As a result of an activity analysis, the accounting department has iden

attashe74 [19]

Answer:

(a) unit level activity

(b) Product level activity

(c)Facility level activity

(d) Batch level activity

(e) unit level activity

(f) batch level activity

(g) facility level activity

(h) unit level activity

Explanation:

Unit level activity : It is that type of activity which is deals with only unit of product whether it is a selling unit, variable cost unit , direct material unit, direct labor unit or fixed cost unit.

Batch level activity: It is that type of activity which focuses on batches or bulk goods so that good discount to be provided due to which customers are happy that results in increase in sales.

Product level activity: It is that type of activity which deals in a single product or we can say finished product which is ready to sale.

Facility level activity: It is that type of activity which aims in giving the facilities relating to the product or charges some taxes.

BY going through the meaning of each one of the activity level, we get to know that (a) unit level activity

(b) Product level activity

(c)Facility level activity

(d) Batch level activity

(e) unit level activity

(f) batch level activity

(g) facility level activity

(h) unit level activity

6 0

3 years ago

Computing and Assessing Plant Asset Impairment

AVprozaik [17]

Answer:

a. Depreciation expense = (Cost - Salvage value / Useful life

Depreciation expense = ($225,000 - $25,000) / 10 years

Depreciation expense = $20,000

b. Equipment's net book value = Cost of equipment - Depreciation for 4 years

Equipment's net book value = $225,000 - ($20,000 * 4)

Equipment's net book value = $225,000 - $80,000

Equipment's net book value = $145,000

c. When the sum of undiscounted expected cash flows < Net book value of asset, then the asset is impaired

Here, $125,000 < $145,000. So, the equipment is impaired.

Impairment loss = Net book value of asset - Fair value of asset

Impairment loss = $145,000 - $90,000

Impairment loss = $55,000

8 0

3 years ago

Building piles of documents is an efficient way to organize. True or False