Answer:
Cash receipt:
Particulars Amount
................................................................
Sales = $1,500
Sales tax @4.00 % = $60
................................................................
Total = $1,560
.................................................................
Explanation:
Data :
Merchandise cost in the sales slip = $1,500
sales tax rate for the merchandise = 4%
Now,
the cash receipt data will include the merchandise cost, the amount of tax and the total amount after including the tax
Thus,
The amount of tax on the merchandise = sales tax rate × Merchandise cost
or
The amount of tax on the merchandise = 0.04 × $1,500 = $60
Hence,
the total cost = cost of merchandise + the sales tax = $1,500 + $60 = $1,560
Cash receipt:
Particulars Amount
................................................................
Sales = $1,500
Sales tax @4.00 % = $60
................................................................
Total = $1,560
.................................................................
Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
Answer:
Total labor cost= $70,000
Explanation:
<u>The supervisor salary is a fixed labor cost, it is unlikely that would change with production.</u>
<u>First, we need to calculate the unitary variable direct labor hour:</u>
Unitary variable direct labor hour= 30,000 / 3,000
Unitary labor hour= $10
<u>Now, the flexible budget for 5,000 hours:</u>
Fixed cost= 20,000
Variable cost= 10*5,000= 50,000
Total labor cost= $70,000
Answer:
A feasibility report is a paper that examines a proposed solution and evaluates whether it is possible, given certain constraints. It includes six sections: introduction, background information, requirements, evaluation, conclusions, and finally, the recommendation or final opinion section.
How a feasibility report should be written:
1. Write a Project Description. At this step, you need to collect background information on your project to write the description. ...
2. Describe Possible Solutions. ...
3. List Evaluation Criteria. ...
4. Propose the Most Feasible Solution. ...
5 Write a Conclusion.
Explanation:
The feasibility report will look at how a certain proposal can work on a long-term basis or endure financial risks that may come. It is also helpful in recognizing potential cash flow. Another important purpose is that it helps planners focus on the project and narrow down the possibilities.
A feasibility report is a document that assesses potential solutions to the business problem or opportunity and determines which of these are viable for further analysis.
