Answer:
No silly! :)
Explanation:
Zero-based budgeting is a repeatable process that organizations use to rigorously review every dollar in the annual budget, manage financial performance on a monthly basis, and build a culture of cost management among all employees. Basically, all budgets must be justified for each monthly period.
Answer:
Effect on income= $60,000 decrease
Explanation:
Giving the following information:
Current contribution margin= 15,000*(20 - 14)
Current contribution margin= $90,000
The study shows that $70,000 of the $100,000 in fixed expenses charged to Product X1 would remain even if the product was discontinued.
<u>To calculate the effect on income, we need to use the following formula:</u>
Effect on income= avoidable fixed costs - total contribution margin
Effect on income= 30,000 - 90,000
Effect on income= $60,000 decrease
Radio & Television Is The Answer
Answer:
Kodiak Fridgeration Company
Income Statement
For the month ended August 31, xxxx
Sales $8,800,000.00
Less: Manufacturing costs:
Direct materials $3,450,000.00
Direct labor $1,196,000.00
Variable manufacturing cost $782,000.00
Fixed manufacturing cost <u>$598,000.00</u>
<u>($6,026,000.00)</u>
Gross Income $2,774,000.00
Less: Selling & admin expenses
Variable $600,000.00
Fixed $320,000.00
<u>($920,000.00)</u>
Net Income $1,854,000.00
Explanation:
Absorption costing consider all the cost incurred in production either variable or fixed as production cost and all the operating costs as the period costs. It calculates the gross profit after deducting the cost of goods sold from the net sales and net income after deduction the operating costs from the gross profit.
Answer:
The answer is: C) Business analysis
Explanation:
In this stage the projected sales, costs and profits are reviewed. If they comply with the organization´s goals and objectives, then the process advances to the next step.
Every stage in this process is important, but you must remember the ultimate goal of a business is to maximize its profit. So no matter how extremely good a product is, if the business can not make a profit, it is useless.