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4 years ago

Which of the following statements is correct about the connection between cost centers and revenue?

Business

1 answer:

Mazyrski [523]4 years ago

8 0

Answer:

B) Cost centers do not directly generate revenue from customers, but they may have an impact on revenue through customer satisfaction and overall quality.

Explanation:

Cost Centers are functions where costs are accumulated.

Cost centers do not generate revenue, but they do have impact on revenue since price determination lies on the cost if the company is to make profit.

Costs also determine the quality of the final product to customer and the satisfaction there-off - which are vital for driving revenue.

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A Caterpillar tractor acquired on January 12 at a cost of $171,000 has an estimated useful life of 25 years. Assuming that it wi

Kay [80]

Answer and Explanation:

a. The computation of depreciation for each of the first two years by the straight-line method is shown below:-

Depreciation

= (Assets cost - Salvage value) ÷ Useful life

= ($171,000 - 0) ÷ 25

= $6,840

For First year = $6,840

For Second year = $6,840

It would be the same for the remaining useful life

b. The computation of depreciation for each of the first two years by the double-declining-balance method is shown below:-

First we have to determine the depreciation rate which is shown below:

= One ÷ useful life

= 1 ÷ 25

= 4%

Now the rate is double So, 8%

In year 1, the original cost is $171,000, so the depreciation is $13,680 after applying the 8% depreciation rate

And, in year 2, the ($171,000 - $13,680) × 8% = $12,585.60

7 0

3 years ago

The following standards for variable manufacturing overhead have been established for a company that makes only one product:

pantera1 [17]

Answer:

c $4,450 U

Explanation:

The computation of the Variable overhead spending variance is shown below:

= (Standard variable overhead Rate × Actual Hour) - (Actual Rate × Actual Hour)

= ($12 × 400 units × 5.6 hours) - ($31,330)

= $26,880 - $31,330

= $4,450 Unfavorable

The (Actual Rate × Actual Hour) is also called as Actual variable overhead.

All other information which is given is not relevant. Hence, ignored it

3 0

3 years ago

1.What is MONEY?<br>2.did MONEY help you?<br>pls ans im back

REY [17]

1. Money is a very valuable thing that helps you live. You can get money by getting a job, but there are lots of other ways to get money.

2. money helps with you being able to afford things. Money can get you a house, a tv, or even a phone.

5 0

3 years ago

Assume a market is in equilibrium. There is an increase in supply, but no change in demand As a result the equilibrium price ___

cluponka [151]

It is number D because if there’s an increase in supply but not change in demand then the equilibrium price will rise and the quantity will increase

5 0

3 years ago

An insurance company is analyzing the following three bonds, each with five years to maturity, annual interest payments, and is

Andrej [43]

Here's the complete question:

An insurance company is analyzing the following three bonds, each with five years to maturity, and is using duration as its measure of interest rate risk:

a. $10,000 par value, coupon rate = 8%, rb = 0.10

b. $10,000 par value, coupon rate = 10%, rb = 0.10

c. $10,000 par value, coupon rate = 12%, rb = 0.10

What is the duration of each of the three bonds?

a. Duration on 8% coupon bond = 4.28 years

Year 1 ,2,3,4,5

CFs 800,800,800,800,10800

DCFs 727.27, 661.2, 601.05, 546.41 6705.95

PV=9241.84

Duration = <DCFs/PV

(7271+661.22+601.053+546.414+6705.95*5)/9241.84

=39568.1/9241.84

=4.2814

b. Duration on 10% coupon bond = 4.17 yearsc.

c. Duration on 12% coupon bond = 4.07 years

7 0

3 years ago

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