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2 years ago

Management accounting is accounting for effective management. Explain this statement.

Business

1 answer:

Marianna [84]2 years ago

4 0

Explanation:

Management is the process of organizing, commanding, coordinating and controlling administrative resources. When we talk about management accounting, we relate to a company's financial resources, which are essential for profitability, payments, investments, etc., that is, so that the business can flow effectively.

Therefore, it is correct to say that managerial accounting is the accounting for effective management because accounting is an instrument of control and management for organizing financial accounts and indexes, these being essential instruments in helping to better decision making in a period of time, giving subsidies for managers to adapt and anticipate negative financial situations for example.

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Which of the following is not deductible as an itemized deduction?a. State income taxesb. Personal property taxesc. Charitable c

LuckyWell [14K]

Answer:

The correct answer is letter "E": All of the above may be deductible as itemized deductions .

Explanation:

Itemized deductions can be deducted from the Adjusted Gross Income (AGI) as long as they are eligible expenses on products, services or contributions. They allow the taxpayer to pay less in contrast to the regular deduction method. Itemized deductions may include but are not limited to personal taxes, medical expenses, interest, charitable gifts, casualty losses, and state and local taxes.

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3 years ago

Read 2 more answers

A hardware buyer plans to purchase 75 ladders which will retail for $35 each. He has already placed an order for 48 ladders at $

Anarel [89]

Answer:

The most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal is $36.357.

Explanation:

A hardware buyer plans to purchase 75 ladders which will retail for $35 each. This means that he is going to sell each ladder for $35, regardless of how much he paid for them before.
He has already placed an order for 48 ladders at $16.50 each. So out of the 75 ladders he is planning to purchase and then sell, he bought 48 at a reduced price of only $16.50 each. Now if we subtract those numbers, as shown below, we determine that he still needs to buy 27 more ladders at an unknown price:

(75 - 48) ladders = 27 ladders

What is the most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal? So we need to determine the maximum price for each of the remaining 27 ladders if he is to obtain a 48% markup goal.

Markup in this case is just a measure of the ratio (in %) between the profit made (by selling 75 ladders for $35 each) to the cost paid (by buying 48 of them at $16.5 each and 27 of them at an unknown price). Its formula is as follows:

$Markup=\frac{Profit}{Cost}*100$

Now, we already have our markup goal of 48%, so we can substitute that number into the formula, and divide both sides of the equation by 100:

$48=\frac{Profit}{Cost}*100\\0.48=\frac{Profit}{Cost}\\\frac{Profit}{Cost}=0.48$

We know that Cost is the sum of what he paid for the 48 ladders, plus what he is to pay for the remaining 27 ladders, so it should look something like this:

$Cost=(48ladders*16.5\frac{dollars}{ladder} )+(27ladders*x)$

$Cost=(792 dollars)+(27ladders*x)$

Where 'x' is the maximum price he can pay for each of the remaining 27 ladders if he is to obtain a 48% markup goal.

We should also know that Profit is what he gets by selling the 75 ladders, minus the cost paid for them. It should look something like this:

$Profit=(75ladders*35\frac{dollars}{ladder} )-[(792dollars)+(27ladders*x)]$

$Profit=(2625dollars)-[(792dollars)+(27ladders*x)]\\Profit=(2625dollars)-(792dollars)-(27ladders*x)\\Profit=(1833dollars)-(27ladders*x)$

Next, we want to substitute what we have so far for Cost and Profit into the worked Markup formula we had written before, and solve the equation by isolating our 'x'. To do that, let's follow these steps:

$\frac{Profit}{Cost}=0.48$

$\frac{(1833dollars)-(27ladders*x)}{(792 dollars)+(27ladders*x)}=0.48\\1833dollars-27ladders*x=0.48*[792 dollars+27ladders*x]\\1833dollars-27ladders*x=380.16dollars+12.96ladders*x$

At this point, we want to transfer the 'x' terms to one side of the equation, and the other terms to the other side, so we get to the answer:

$1833dollars-380.16dollars=12.96ladders*x+27ladders*x\\1452.84dollars=(12.96+27)ladders*x\\1452.84dollars=39.96ladders*x$

Finally, we divide both sides of the equation by 39.96 ladders:

$\frac{1452.84dollars}{39.96ladders} =x\\36.357\frac{dollars}{ladders}=x\\x=36.357\frac{dollars}{ladders}$

So the most he can pay for each of the remaining ladders if he is to obtain a 48% markup goal is $36.357. That means that even if he buys the remaining ladders for a higher price than what he is willing to sell them for, he still obtains a 48% markup goal.

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3 years ago

Interest is capitalized when incurred in connection with the construction of plant assets because_______.

Alisiya [41]

Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue

<h3>What is Interest?</h3>

This refers to the amount or rate that is added to a principal amount and this is usually done when a loan is collected.

Hence, we can see that when plant assets are being constructed, interest is capitalized and the main reason why this happens is that the asset is not generating revenue.

Furthermore, actual interest is the only thing that should be capitalized and this is because, during construction, the asset is not generating revenue and therefore companies should defer (capitalize) interest cost.

Thus, Interest is capitalized when incurred in connection with the construction of plant assets because, during construction, the asset is not generating revenue.

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2 years ago

Taylor Systems has just issued preferred stock. The stock has a 10% annual dividend and a $ 110 par value and was sold at $119

shutvik [7]

Cost of preferred stock Taylor Systems has just issued preferred stock. The stock has a 12 % annual dividend and a $100 par value and was sold at $97.50 per shar

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3 years ago

a company produces a single product. variable production costs are $14.00 per unit and variable selling and administrative expen

My name is Ann [436]

The value of the ending inventory under variable costing is calculated to be $19,600.

To determine the value of the ending inventory under variable costing we first find out the units in the ending inventory as follows;

Units in ending inventory = Units in beginning inventory + Produced units − Sold units

Units in ending inventory = 0 + 6000 - 4600

Units in ending inventory = 1400

Now the value of the ending inventory under variable costing can be determined by multiplying units in the ending inventory by the variable production cost as follows;

Value of Ending inventory = Unit in ending inventory × Variable production cost

Value of Ending inventory = 1400 × 14

Value of Ending inventory = $19,600

Hence, the value of the ending inventory would be $19,600 under variable costing.

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1 year ago

Management accounting is accounting for effective management. Explain this statement.​

Management accounting is accounting for effective management. Explain this statement.