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3 years ago

Accounting systems that use standards for product costs are called budgeted cost systems. True False

Business

1 answer:

Yuri [45]3 years ago

7 0

Answer:

False.

Explanation:

Accounting systems that use standards for product costs are standard cost systems.

In Financial accounting, various business firms or companies use the standard cost systems to determine the variances or differences between the actual (real) cost of goods produced and the estimated cost for the goods that were produced by the company.

Hence, standard cost systems are used by business firms or companies as a strategic tool or technique for the management and control of costs, budget planning, and analyzing cost management performance at a specific period of time.

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A proposed new project has projected sales of $195,000, costs of $92,000, and depreciation of $25,200. The tax rate is 25 percen

rusak2 [61]

Answer:

EBIT + Depreciation - Tax

= (195000-92000-25200) + 25200 - 19450

= $83,550

Top down OCF = EBIT - (EBIT * Tax) + Depreciation

Top down OCF = (195000-92000-25200) - ((195000-92000-25200) * 0.25) +25200

Top down OCF = 77800 - 19450 + 25200

Top down OCF = $83,550

Tax shield OCF = (Sales - Exp) (1-tax) + (Dep * tax)

Tax shield OCF = (195000-92000) (1-0.25) + (25200 * 0.25)

Tax shield OCF = 77250 + 6300

Tax shield OCF = 83550

Bottom Up OCF = Net Income + Dep

Bottom Up OCF = (77800 * (1-0.25) + 25200

Bottom Up OCF = 83550

5 0

3 years ago

The Tucana Bank of Commerce pools customer deposits and uses the

ivanzaharov [21]

I think it is b or c

6 0

2 years ago

Lehman Corp. has two departments: Assembly and Testing. Assembly department had beginning inventory of 750 units which were 50%

algol13

Answer:

Total equivalent unit 1,425 units

Explanation:

Under the first-in -first out system, to account for the units completed in a period, it is assumed that the opening inventory units are first completed and the balance represents the newly introduced.

Fully worked represents unit of inventory started this this period and completed this period

Fully worked = completed units - opening inventory

Fully worked = 1200 -750 = 450 units

Item Units Equivalent Units

Opening WIP 750 750×50% 375

Fully worked 450 450× 100% 450

Closing WIP 800 800× 75% 600

Total equivalent unit 1,425

Note the opening inventory has 50% work done last period so the balance of 50% i.e (100 - 50) is completed this period

5 0

3 years ago

Modern supply chains simultaneously pursue the goals of high-quality, fast response, and low cost because customers nowadays wan

d1i1m1o1n [39]

Answer:

Just -in-Time(JIT)

Explanation:

Just in time is a lean manufacturing approach through which Organisation manage inventory in such a way that the supplies are received just at the time it is required, just-in-time is one of the key strategies adopted by Toyota in Japan in order to enhance its Efficiency and ensure that it doesn't take the cost of storing inventories in its operations.

3 0

4 years ago

Read 2 more answers

Owen Conner works part-time packaging software for a local distribution company in Indiana. The annual fixed cost is $10,000 for

Brut [27]

Answer:

break even point in units = 2,667

break even point in $ = $33,338

Explanation:

The break even point marks the point where a company is able to cover all its expenses. At this point the company is not losing money, but it is not making a profit either.

break even point in units = total fixed costs / contribution margin

total fixed costs = $10,000
contribution margin = $12.50 - ($4 + $4.75) = $12.50 - $8.75 = $3.75

break even point in units = $10,000 / $3.75 = 2,666.67 ≈ 2,667 units

break even point in $ = 2,667 units x $12.50 per unit = $33,337.50 ≈ $33,338

7 0

3 years ago