To be able to fix the thing that are broken and to communicate with each other
Answer:
A detailed list of the accounts that make up the five financial statement elements.
Explanation:
The company's chart of accounts is the listing of all the accounts that the company has included as part of the five financial statement elements during a specific period of time.
The five financial statement elements are: assets, liabilities, equity (part of the balance sheet), expenses and revenues (part of the income statement).
Examples of accounts that can be part of a firm's chart of accounts are: land (asset), cash (asset), notes payable (liabilities), outstanding stock (equity), operating expenses (expenses), and sales revenue (revenues).
The chart of accounts can differ greatly from company to company simply because companies engage in vastly different economic activities.
Answer:
True
Explanation:
The direct cost is that cost which is directly related to the manufacturing process of the product or the production process of the product
The example of the direct cost involves direct material cost, direct labor cost, supplies cost of manufacturing, travel, subcontracts, computer time, etc
Hence, the given statement is true.
Answer:
3
Explanation:
The computation of the degree of operating leverage is shown below:
= (Sales - Variable expense) ÷ (Sales - Variable expense - Fixed expense)
= ($700,000 - $490,000) ÷ ($700,000 - $490,000 - $140,000)
= $210,000 ÷ $70,000
= 3
The (Sales - Variable costs) = Contribution margin
The (Sales - Variable costs - Fixed costs) = EBIT i.e Earnings before interest and taxes
