Answer:
Arbitrary allocation.
Explanation:
Arbitrary allocation is a method where costs budgeted are not based on any precise measurement,hence accurate costs could not be arrived at.
This approach to budgeting breeds inefficiencies as the accurate budgeting is expected to lead to accurate costing of products as well as pricing.
All in all,the true profitability of a business cannot be ascertained.
Finally,the organization adopting this type of approach needs to change to other accurate methods of budgeting such incremental or rolling budgeting.
Answer:
a. radius = 0.0006m = 0.6mm and length =0.393m = 393mm
b. frequency =377.86Hz
Explanation:
Given:
mass of steel= 4g = 0.004kg
density of steel = 7890kg/m3
tensile stress of steel 7.0x10⁸
tension load =900N
from the density, we will calculate for the Volume of the steel string
density = mass/volume
volume = mass/density = 0.004/7890 = 5.07 x 10⁻⁷ m³
from the tensile stress will can get the maximum base Area of the string ,
tensile stress = load/area =
7x10⁸ = 900/A
A = 900/7x10⁸ = 1.29x10⁻⁶ m²
Area = πr²
area/pi = 4.105x10-7
radius = 0.0006m = 0.6mm
volume = Area x length
length = vol/area =(5.07 x 10⁻⁷ m³)/1.29x10⁻⁶ m² = 0.393m
b. the highest possible frequency is given by:
F = 
where T= tension, m=mass, L=length
F = 
= 297.04/0.786
frequency =377.86Hz
Answer:
departmentalization
Explanation:
Departmentalization is defined as the process of grouping various activities according to departments.
Each department tends to specialise in the assigned activity. This method promotes division of labour where a group of people specialise in one activity.
In the given scenario James is restructuring operations around three product lines to increase speed and effectiveness of decision making.
This is departmentalization with a view of increasing process efficiency
Answer:
After tax cost of debt is 5.239%
Explanation:
Given:
Face value = $1,000
Bond price = $895
Coupon payments = 0.035×1,000 = $35 (coupon payment is paid semi-annually so 7% is divided by 2)
Maturity = 20×2 = 40 periods
Using bond price formula:
Bond price = Present value of face value + present value of coupon payments
Use excel function =RATE(nper,pmt,PV,FV) to calculate cost of debt.
substituting the values:
=RATE(40,35,-895,1000)
we get Pre-Tax cost of debt = 4.03% semi- annual
Annual rate is 4.03%×2 = 8.06%
Note: PV is negative as bond price is cash outflow.
After tax cost of debt = 8.06(1 - 0.35)
= 5.239%
Answer:
$277,125
Explanation:
The calculation of income tax expense is shown below:-
Income tax expense = Income taxes payable at the end of 2022 + (Rent revenue ÷ 2) × Tax rate
= $258,000 + (($153,000 ÷ 2) × 0.25)
= $258,000 + $76,500 × 0.25
= $258,000 + $19,125
= $277,125
Therefore for computing the income tax revenue we simply applied the above formula.
