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insens350 [35]
3 years ago
10

Under variable costing, if a manager's bonus is tied to operating income, then increasing inventory levels compared to last year

would result in: being unable to determine the manager's bonus using only the above information not affecting the manager's bonus increasing the manager's bonus decreasing the manager's bonus
Business
1 answer:
inysia [295]3 years ago
7 0

Answer: not affecting the manager's bonus

Explanation:

Under Variable costing, fixed manufacturing overhead is not charged on inventories produced or not sold for the year which means that regardless of inventory level, the relevant inventory here when it comes to calculating operating profit is the one that was sold.

The manager's bonus will therefore not change as a result of higher inventory levels. Were this absorption costing where fixed overhead was charged to inventory that was not sold, the manager's bonus would increase because the higher inventory level would absorb more of the cost.

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the major characteristics are:

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5. risks and uncertainties

6. marketing and Distribution of goods

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2 years ago
Which of the following are ways to develop a better social network:
Alex

Answer:

The ways to develop a better social network is to:

C. Maximize homophily

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Describe the effect of each transaction on assets, liabilities, and stockholders' equity.
Aliun [14]

Answer:

<u><em>Issued Common Stock to Investors in exchange for Cash received from investors</em></u>

Stockholders Equity = Increase

Assets = Increase

Liabilities = No Effect

<u><em>Paid Monthly Rent</em></u>

Assets = Decrease

Stockholders equity = Decrease

Liabilities = No Effect

<u><em>Received cash from customers when service is performed</em></u>

<em>Assets = Increase</em>

Stockholders Equity = Increase

Liabilities = No Effect

<u><em>Billed Customers when service is performed</em></u>

<em>Assets = Increase</em>

Liabilities = No Effect

Stockholders Equity = Increase

<em />

Explanation:

<u><em>Issued Common Stock to Investors in exchange for Cash received from investors</em></u>

Stockholders Equity increase due to increase in issue of additional common stock.

Assets increase due to inflow of asset of Cash resulting from the issue.

<u><em>Paid Monthly Rent</em></u>

Stockholders equity decrease due to increase in an expense item (Rent) which decreases profits attributable to stockholders.

Assets decrease due to outflow of economic benefits in form of cash.

<u><em>Received cash from customers when service is performed</em></u>

Shareholders Equity increase increase due to inflow of economic benefits in form of revenue, which would consequently increase profit attributable to shareholders.

Assets are increasing due to inflow of economic benefits in form of cash.

<u><em>Billed Customers when service is performed</em></u>

Assets are increasing due to increase of future economic benefit in form of Accounts Receivable.

Shareholders Equity increase increase due to inflow of economic benefits in form of revenue, which would consequently increase profit attributable to shareholders.

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