The denominator of the fixed asset turnover ratio is AVERAGE FIXED ASSET.
The fixed assert turnover ratio refers to the ratio of sales to the value of fixed asset of a company. The ratio is very important in evaluating how a company is using its fixed assets to generate sales.
Mathematically, fixed asset turnover ratio = Net sales / Average fixed assets.
The numerator is net sales while the denominator is average fixed asset.
Answer:
A is the correct option.
Explanation:
The amount which is receivable by a business from the customers once it had delivered goods and services is known as Trade receivables. It is documented on invoices and summarized in accounts receivable aging targets. The collections staff used this report to collect overdue payments. Trade receivables are also in separate accounts as the receivable account which is classified as current assets.
It is a settlement agreement, where the defendant could pay the plaintiff an agreed amount to settle the dispute.
SMART is an acronym that means specific, measurable, achievable, relevant. The answer is D.
Answer:
$65,750
Explanation:
Given:
Direct materials = $6.20
Direct labor = $3.70
Variable manufacturing overhead = $1.25
Fixed manufacturing overhead = $10,000
Sales commissions = $1.50
Variable administrative expense = $0.50
Fixed selling and administrative expense = $5,000
Number of unit Produced = 5,000 units
Calculation:
Production Cost = Direct Material cost + Direct labor cost + variable manufacturing overhead + Fixed manufacturing overheads.
= (5000 x $6.20) + (5000 x $3.70) + (5000 x $1.25) + $10,000
= ($31,000) + ($18,500) + ($6,250) + $10,000
= $65,750