Answer:
Cost-benefit analysis.
Explanation:
Cost-benefit analysis is used to examine and compare the cost associated with a project or task and the benefits derived from it.
In the given scenario, Alpha Manufacturing has most likely conducted a cost-benefit analysis, a form of utilitarianism commonly applied by firms and government. Also, it is essentially used by various organizations or business firms in the decision-making process, as all the cost incurred are determined.
Additionally, it may be used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.
Fixed costs can be defined as predetermined expenses in a business that remain constant for a specific period of time regardless of the quantity of production or level of outputs. Some examples of fixed costs in business are loan payments, employee salary, depreciation, rent, insurance, lease, utilities etc.
Answer:
Managerial accounting (also known as cost accounting or management accounting) is a branch of accounting that is concerned with the identification, measurement, analysis, and interpretation of accounting information so that it can be used to help managers in a company make choices for it.
Explanation:
Answer:
$61,000
Explanation:
Explicit costs are the direct expenses incurred in running a business. They have a determined dollar value that reflects on the business records. Explicit costs have a direct impact on profits.
Examples of explicit costs include rent, wages, raw materials, utilities, and other direct costs. For Chris, the direct (explicit )cost of his business will be the salary to the administrative secretary and rents office space (utilities included)
Explicit cost will be
=$25,000 +$36,000
=$61,000
Answer:
when you compute depreciation expense using the double declining method, the salvage value is not included in the depreciation calculation. You continue to depreciate the asset until you reach its salvage value:
- depreciation expense year 1 = 2 x 1/10 x $920,000 = $184,000
- depreciation expense year 2 = 2 x 1/10 x $736,000 = $147,200
- depreciation expense year 1 = 2 x 1/10 x $588,800 = $117,760
Answer:
1) Debit Bank $11787069 Debit bond discount $912931 ; Credit Bond $12700000
2) Debit Interest expense $751293 ; Credit Bank $660,000 Credit Discount on Bond payable $91293
3 )Debit interest expense $ 751293 ; Credit bank 660000, Credit discount on bond payable $91293
b)Interest expense = $1502586
c)It is because a financial crisis might have happened prior to issuing the bond and the company still went ahead with issuing even though the rate has changed.
Explanation:
interest expense = 12000000 * 0.11 * 6/12=$660000
discount on bond payable = $912931 /5 = 182586 /2= 91293
Interest expense = $751293 * 2 = $1502586