Answer:
a. At lower levels, management have fewer controllable costs
Explanation:
The opposite is true, lower-level management have more controllabe costs than higher level management because top management focuses on the general strategy of the firm, while lower management focuses on the specific production processes.
It is in these specific production processes that many controllable costs arise. A production line supervisor (part of lower-level management) can directly control some variable costs such as energy used, amount of input, or even work hours.
Answer:
Future value equals the present value multiplied by one plus the rate of interest in decimals.
Explanation:
Future value = present value x (1 + interest rate)
Interest rate = present value x interest rate
Answer:
Dr Bond investment $50,000
Cr cash $50,000
Dr cash $1,250
Cr interest revenue $1,250
Dr cash $50,000
cr bond investment $50,000
Explanation:
On July 1 2019,Red company would have parted with cash of $50,000 which means that cash account should be credited with $50,000 while bond investment account is debited with same amount
On receipt of first interest payment of $1,250 (5%*$50,000*1/2) cash is debited with $1,250 while interest revenue is credited with the same amount.
Upon receipt of face value at redemption,the journal entry would be opposite of the initial one
Answer:
7,000 units
Explanation:
Calculation for the number of units set forth in the production budget, representing total production for the current period
Using this formula
Number of units =Current period +Ending inventory - Beginning inventory
Where,
Current period =7,000 units
Ending inventory=400 units
Beginning inventory =400 units
Let make plug in the formula above
Number of units =7,000 units + 400 units-400 units
Number of units =7,000 units
Therefore the Number of units will be 7,000 units
Answer:
The fixed overhead cost that can be eliminated if the bowls are purchased from an outside supplier is a relevant cost. The variable selling cost of the snack is also a relevant cost.
The correct answer is A
Explanation:
Relevant costs are costs that relate to future decisions. All variable costs are relevant for decision-making. Eliminated fixed overhead are also relevant for decision-making.
