Answer: d. Timm can deduct the expense in the year of payment.
Explanation:
A Contingent Liability refers to a liability that a company MIGHT incur if a future event happens. It is mostly often used for law suits in case a company has to pay damages. They will thus accrue the expense in readiness to pay it off should the need ever arise.
While Timm will record it in the books, there is no need to deduct it from the income yet. Timm should wait until the year they will have to pay to deduct it. That way the expense will be correctly apportioned to it's corresponding period.
Answer:
E) 1920
Explanation:
The computation of the maximum items in process is shown below:
= Number of maximum target cycle time × normal processing rate per minute × number of minutes in one hour
= 16 hours × 2 × 60 minutes
= 1,920
Simple we multiply the all items which are given in the question, so that the accurate value can come i.e maximum target cycle time, normal processing rate per minute and the number of minutes in one hour
The aswer is: A.
Aggregate supply is best described as the total output of a product. It is the total amount of goods and services that companies can sell depending on a particular level of price and particular amount of time. Its position is usually shown on the the aggregate supply curve, which in supposed to reflect the relationship between price levels and the quantity of output that companies are about to provide.<span>
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Answer:
The total Operating income will decrease by $5,000
Explanation:
Note that some word are missing and are inserted as written below:
"<em>Benace Parts and Supply makes a variety of car parts. The company produces 6,000 A90 parts each year. Each A90 sells for $7 and has a contribution margin of $2. Currently, $16,000 of fixed manufacturing overhead is allocated to the A90 product line. If Benace Parts and Supply discontinues the A90 product line, $7,000 of fixed manufacturing overhead costs would be avoided. What would be the impact on total operating income if the A90 product line were to be discontinued?
</em>"
Solution:
Loss of Contribution margin if the A90 product line discontinued = Units * Contribution margin per unit
= 6,000 units * $2
= $12,000
Saving of avoidable fixed Overhead = $7,000
Decrease in Total Operating Income = Loss of Contribution margin - Saving of avoidable fixed Overhead
= $12,000 - $7.000
= $5,000 (Decrease)
Hence, the total Operating income will decrease by $5,000
