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Ksivusya [100]
2 years ago
5

Sole Purpose Shoe Company is owned and operated by Sarah Charles. The company manufactures casual shoes, with manufacturing faci

lities in your state. Sarah began the business this year, and while she has a great deal of experience in manufacturing popular and comfortable shoes, she needs some help in evaluating her results for the year, and asks for your help.
Sarah’s first questions for you have to do with the general ideas and terminology used to evaluate variances.

1. Why might Sarah want to use standard costs to compare with her actual costs?

a. Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.
b. Standard costs give management a cost structure for products that is applicable for the entire life of the business.
c. Standard costs allow management to motivate employees by comparing their performance to what it would be under perfect conditions.

2. What are some possible drawbacks to using standard costs that Sarah might consider? Check all that apply.

a. Since standards are impossible to attain, they are a distraction from the work at hand.
b. Since standards never change, they do not reflect reality.
c. Standards limit operating improvements because employees may be discouraged from improving beyond the standards.
d. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization.
e. Standards may become "stale" in a dynamic manufacturing environment.
Business
1 answer:
IgorLugansk [536]2 years ago
5 0

Answer:

1. The reason Sarah might want to use standard costs to compare with her actual costs is:

a. Management can evaluate the differences between standard costs and actual costs to focus on correcting the cost variances.

2. Drawbacks of using Standard Costs are:

c. Standards limit operating improvements because employees may be discouraged from improving beyond the standards.

d. Employees may focus only on efficiency improvement and their own operations rather than considering the larger objectives of the organization.

e. Standards may become "stale" in a dynamic manufacturing environment.

Explanation:

Standard costs encourage the pursuit of management goals.  They are the costs that should be under a particular type of circumstances.  They are usually compared with actual costs to determine their differences or variances.  Their use helps management to focus on how to improve overall performance.

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3 years ago
Prepare journal entries to record the following transactions for Sherman Systems. Purchased 6,000 shares of its own common stock
Andrei [34K]

Answer:

Revised Equity Section of Balance Sheet After October 11

<u>                                                                                                          </u>

Common Stock at par                                                 $820,000

Paid-in capital in excess of Par                    <u>              $266,000</u>

Total Contributed Capital                                        $1,086,000

Retained earnings                                        <u>            $  944,000</u>

Total                                                                          $2,030,000

Less: Treasury Stock                                    <u>           ($  210,000)</u>

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3 years ago
Match the statements below with the appropriate terms by entering the appropriate letter code in the spaces provided. Terms:A. P
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Answer:

Explanation:

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2. Prepaid Expenses: In this transaction, the office supplies are used in the next period, so it will be treated as prepaid expenses

3. Accrued revenues: The subscription revenue is already earned, so it will be treated as a accrued revenues

4. Accrued revenues: The rent is earned but not collected, so it will be treated as a accrued revenues

5. Accrued Expenses: As the expenses are incurred but not yet paid or recorded so, it will be treated as outstanding expenses

6. Accrued Revenues:  As the revenue is earned but not yet collected or recorded so, it will be treated as an accrued revenues

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8 0
2 years ago
Fitz Company reports the following information.
Karolina [17]

Answer:

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Explanation:

This can be prepared as follows:

Fitz Company

Statement of cash flows

(Operating activities section only)

For the year ended December 31.

<u>Details                                                                      $           </u>

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Depreciation expense                                       50,000

Amortization expense                                         7,300

Gain on sale of plant assets                              (7,400)

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Accounts receivable decrease                         33,400

Inventory decrease                                            47,500

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Accounts payable decrease                            (10,900)

Salaries payable increase                           <u>         1,300   </u>

Net cash from operating activities          <u>     527,000   </u>

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"The user test and acceptance procedure is the last point at which the user can determine the system’s acceptability prior to it
tatyana61 [14]

Answer:

True

Explanation:

Assuming it to be true false question the given statement is true.

The given statement is absolutely correct that the user test and acceptance procedure is the last point at which the user can determine the system’s acceptability prior to it going into service.

4 0
3 years ago
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