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forsale [732]
3 years ago
9

Sound Audio manufactures and sells audio equipment for automobiles. Engineers notified management in December 2021 of a circuit

flaw in an amplifier that poses a potential fire hazard. An intense investigation indicated that a product recall is virtually certain, estimated to cost the company $2 million. The fiscal year ends on December 31. Required: 1. Should this loss contingency be accrued
Business
1 answer:
denis-greek [22]3 years ago
3 0

Answer:

Sound Audio

Yes.  This loss should be accrued.

Explanation:

Accruing the loss contingency gives the readers of the financial statements an early warning of the probable existence of a future loss.  A loss contingency arises from a probable future event, which gives rise to an adverse outcome from a lawsuit.  Since the cost of the loss can be reasonably estimated and the product recall is virtually certain, it is prudent for Sound Audio to provide for this loss in its December 2021 financial statements.

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There is a 4 percent error rate at a specific point in the production process. If an inspector is placed at this point, all the
Vsevolod [243]

<u>Solution and Explanation:</u>

The given data is as follows:

Error rate = 4%, per hour payment of inspector = $8, inspection of units = at the rate of 49 per hour, cost = $9 per unit

The problem can be solved as considering an opportunity to have an improvement of 4% in the quality.

In case inspector is not hired then it will cost .04 multiply 9= $.3.6 per unit and in case the inspector is hired it will cost $ 0.163 approx.(8 divided by 49).

Therefore, on comparison, it is recommended to hire the inspector.

8 0
3 years ago
Euphrasia, a mixed open​ economy, was severely affected by a recession that almost paralyzed its service sector. The Euphrasian
Flura [38]

Answer:

E) Oil imports declined as countries exporting oil reduced supply.

Explanation:

Oil is extremely important for industrialized nations and since Euphrasia is a mixed open economy, we can assume that it is an industrialized nation. Oil has become the most important energy source for more than 60 years and is the raw material for manufacturing plastic.

During the 1970s and early 1980s the American economy was shattered by an increase in the price of foreign oil and a decrease in its domestic production levels. The importance of oil is also why so many modern wars have been fought over oil production and reserves.

4 0
3 years ago
Phillip owns a large real estate firm. He imparts training to the managers of the firm to help them effectively manage its multi
Flauer [41]

Answer:

A. skills-based diversity training

Explanation:

Based on the information provided within the question it seems that Phillip is using skill based diversity training in this scenario. This refers to  a training approach that focuses on dealing with diversity in multiethnic workforces and providing the necessary skills to solve various types of problems within them. Which is exactly what is happening in this situation.

4 0
3 years ago
One reason buy a home instead of rent a home is
xxTIMURxx [149]
<span>By renting a home instead of purchasing one, you are paying someone else's mortgage every month and getting nothing in return. While you are gaining a home to live in for the short term, in the long term you will gain nothing. When you purchase a home you will have a home that you own and that you cannot be evicted from as long as you pay your mortgage.</span>
4 0
3 years ago
Most often used in the description of urban property, which of the following methods of land description contains information re
Nina [5.8K]

Answer: The correct answer is "B. subdivision plat lot and block number".

Explanation: The subdivision plat lot and block number method of land description contains information on a wide variety of easements and can sometimes even contain a list of restrictive agreements.

7 0
3 years ago
Read 2 more answers
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