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beks73 [17]
3 years ago
7

Capacity management, denominator-level capacity concepts. Match each of the following numbered descriptions with one or more of

the denominator-level capacity concepts by putting the appropriate letter(s) by each item:a) Theoretical capacity b) Practical capacity c) Normal capacity utilization d) Master-budget capacity utilization 1. Measures the denominator level in terms of what a plant can supply. 2. Is based on producing at full efficiency all the time.3. Represents the expected level of capacity utilization for the next budget period. 4. Measures the denominator level in terms of demand for the output of the plant. 5. Takes into account seasonal, cyclical, and trend factors. 6. Should be used for performance evaluation in the current year. 7. Represents an ideal benchmark. 8. Highlights the cost of capacity acquired but not used. 9. Should be used for long-term pricing purposes. 10. Hides the cost of capacity acquired but not used. 11. If used as the denominator-level concept, would avoid the restatement of unit costs when expected demand levels change?
Business
1 answer:
arsen [322]3 years ago
7 0

Answer:

1. Theoretical and Practical capacity: Measures the denominator level in terms of what a plant can supply

2. Theoretical capacity: Is based on producing at full efficiency all the time.

3. Master-budget capacity utilization: Represents the expected level of capacity utilization for the next budget period.

4. Normal and Master-budget capacity: Measures the denominator level in terms of demand for the output of the plant.

5. Normal capacity utilization: Takes into account seasonal, cyclical, and trend factors.

6. Master-budget capacity utilization: Should be used for performance evaluation in the current year.

7. Theoretical capacity: Represents an ideal benchmark.

8. Theoretical and Practical capacity: Highlights the cost of capacity acquired but not used.

9. Master-budget capacity utilization: Should be used for long-term pricing purposes.

10. Normal and Master-budget capacity: Hides the cost of capacity acquired but not used.

11. Theoretical and Practical capacity: If used as the denominator-level concept, would avoid the restatement of unit costs when expected demand levels change.

Explanation:

Capacity is the maximum level of output that an organization can optimally sustain, to produce goods or provide service to meet it's customer demands.

The denominator-level capacity is a concept used under the capacity management. Denominator-level capacity concept is used to ascertain the capacity level that is considered for analyzing a production process or business operations. They are classified as follows;

i. Normal capacity utilization is based on the level of capacity utilization which satisfy the average customer demand periodically such as trend, cyclical and seasonal factors.

ii. Master-budget capacity utilization is based on the level of capacity expected for the current budget period, typically a year.

iii. Theoretical capacity is the denominator-level concept based on producing continuously at full efficiency.

iv. Practical Capacity is based on the level of capacity that involves unavoidable operating interruptions, such as scheduled equipment maintenance or repair time, holiday shutdowns etc.

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The Fantastic Ice Cream Shoppe sold 8,800 servings of ice cream during June for Dollar 5 per serving. The shop purchases the ice
Anuta_ua [19.1K]

Answer:

The Fantastic Ice Cream Shoppe

a) Fantastic Ice Cream Shoppe

June Income Statement, using traditional format

Sales Revenue         $44,000

Cost of goods sold       5,720

Gross profit              $38,280

Expenses:

Rent expense             2,050

Depreciation exp.          220

Other operating exp. 2,800

Total expenses        $5,070

Net Income             $33,210

b) Fantastic Ice Cream Shoppe

June Income Statement, using contribution margin format

Sales Revenue                   $44,000

Direct materials      5,720

Operating expense  700

Total variable expense         6,420

Contribution margin         $37,580

Fixed expenses:

Rent expense             2,050

Depreciation exp.          220

Other operating exp.  2,100

Total expenses                  $4,370

Net income                      $33,210

Explanation:

a) Data and Calculations:

Sales of ice cream during June = 8,800 servings

Price per serving = $5

Sales revenue = $44,000 ($5 * 8,800)

Purchase cost of ice cream in large tubs = $14 * 8,800/28 = $4,400

Purchase cost of ice cream cones = $0.15 * 8,800 = $1,320

Total cost of direct materials = $5,720

Fixed costs:

Rent = $2,050 per month

Depreciation = $220

Other operating expenses:

Fixed operating expense = $2,100 ($2,800 * 75%)

Variable operating expense = $700 ($2,800 * 25%)

3 0
3 years ago
_____ uses an iterative process that repeats the design, development, and testing steps as needed, based on feedback from users.
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Explanation:

Rapid Application Development (RAD) is a method of developing software that tries more to develop a working model first and then adjusts as it receives feedback from users. It essentially is evolving every time because instead of planning for what is needed ahead of time, it simply makes a product and changes it as needed to fit the actual needs of the customers.

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At the end of the current year, Accounts Receivable has a balance of $590,000; Allowance for Doubtful Accounts has a debit balan
denpristay [2]

Answer and Explanation:

a. The computation of uncollectible accounts and Journal entry is shown below:-

Bad Debt expenses Dr, $6,650

($2,660,000 × 1 ÷ 4× 1%)

       To Allowance for doubtful accounts $6,650

(Being uncollectible accounts is recorded)

b. The computation of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense is shown below:-

Accounts receivable = $590,000

Allowance for Doubtful Accounts = (Sales of the year × 1 ÷ 4 × 1%) - Credit balance

= ($2,660,000 × 1 ÷ 4 × 1%) - $5,500

= $6,650 - $5,500

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Bad debt expenses = Sales of the year × 1 ÷ 4 × 1%

= $2,660,000 × 1 ÷ 4 × 1%

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c. The computation of net realizable value of accounts receivable is shown below:-

Net realizable value = Accounts receivable - Allowance for Doubtful Accounts

= $590,000 - $1,150

= $588,850

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valentina_108 [34]

My recommendation would be: communicate directly to the supervisor to clarify the intend of the email

Most employees believed that asking clarification to their supervisor would reflect badly on them since it make them look incompetent.

But most supervisors are trained to provide employees with guidance if they do not understand their assignment. And, following the wrong order would be significantly worse compared to not able to understand an email.

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Answer:

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Explanation:

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