Answer:
b.how costs react to changes in activity level
Explanation:
Cost behavior analysis is the study of how operating cost varies with changes in production level. Management uses mathematical functions to understand how costs change relate to activity level. The costs in reference include fixed, variable, and mixed costs incurred in the manufacturing process.
Understanding cost behavior helps management in controlling and planning business costs. The analysis is useful in determining the cost, profit, volume relationship, including break-even points.
Answer:
manufacturing overhead underallocated for the year $124,102.4
Explanation:
we distribute the expecte rate over the cost dirver
582,100 / 135,000 = 4.3185
150400 x 4.3185 = 649502.4 applied overhead
applied - actual = over or underappied
if actual > applied = underapplied
if actual < applied = overhead
525,400 - 649,502.4 = -124,102.4
Answer:
The answer is =16.7%
Explanation:
Earnings before interest and taxes(EBIT) = $145,000
Tax rate is 25%
Therefore, the applicable tax rate on the earnings is 100% - 25% = 75%
So the Net income is 0.75 x $145,000
Net income = $108,750
The project is financed by 100percent equity and the cost is $650,000.
ROE(Return on Equity) = net income/equity
$108,750/$650,000
=16.7%
Answer:
$143,750
Explanation:
We have to first calculate the present value of the bargain purchase option:
PV = $200,000 / (1 + 6%)⁵ = $149,451.63
net lease amount = $790,000 - $149,452 = $640,548
PVIF Annuity due, 6%, 5 payments = 4.546
Annual payment = $640,548 / 4.456 = $143,750
Actually, the time frames of ERP projects would actually depend on different scenarios taking place. These scenarios are as follows:
For financial modules: 2.5 - 4 months
For financial modules and sales functionality: 5 - 6 months
For financial modules, sales, and inventory functionality: 5 - 7 months
