<span>Derek's
company was bidding on the construction of a new penguin display at a
world-famous zoo. when putting together his bid, derek began by
determining what the zoo would be willing to pay for the structure, and
then subtracting a reasonable profit for the company. the result would
be the cost of production. for example: if price to zoo = $6 million,
and company profit margin = $2 million, the cost to produce cannot
exceed $4 million. [$6 million - $2 million = $4 million.] the
demand-based pricing strategy in this example is called target costing.
</span><span>Target costing is an approach to determine a product's life-cycle cost
which should be sufficient to develop specified functionality and
quality, while ensuring its desired profit. It involves setting a target cost by subtracting a desired profit margin from a competitive market price.</span>
Answer:
$118,000
Explanation:
The formula and the estimation of the direct material used is shown below:
Direct material used = Starting raw material balance + purchase made during the year- ending raw material balance
= $42,000 + $127,000 - $51,000
= $118,000
Adding the purchased amount and deducting the ending raw material balance to the beginning raw material balance for computing the direct material used
Answer:
I'maGoldMiner has benefited from a record rise in gold prices in the global commodities market. While the price of its output is highly influenced by market speculation, if it wants to increase production to take advantage of the current profit-maximizing opportunity, the company must accept market price for its physical capital input.
Explanation:
Actually, the market of gold is very speculative and in general a "gold mines" has to accept market prices because they can't influence in them as in the case of I'maGoldMiner because it represents a small part of the market.
Answer:
What would be the impact on January 1, 2015, the date of the sale?
The following journal entries should be made to register the sale:
January 1, 2015: 2 cars are sold
- Dr Cost of Goods Sold 37,000
- Cr Merchandise Inventory 37,000
- Dr Accounts Receivable 50,000
- Cr Sales Revenue 50,000
On January 30, 2015 Outback Subaru Limited received payment in full from the town for the cars. What would be the impact of this transaction on this date?
The following journal entry should be made to register the payment:
January 30, 2015: the local government paid the cars
- Dr Cash 50,000
- Cr Accounts Receivable 50,000
Named insured(s) can drive a car, or anyone else's (including rental car) and get into an accident. An additional driver is a person who resides with the named insured and/or regularly uses a shared vehicle. His or her record is used in underwriting the policy to determine rates, but the person has no policy rights.
