Answer:
C) Credit to Unearned Management Fees for $62,000.
Explanation:
* There is an Inconsistency with the amount of fee mentioned in Question and In options $60,000 and 62,000 respectively.
The Service fee is received in advance and the service is not been performed. You can record the revenue when you perform the service against the amount received. So, amount 62,000 will be the Unearned Management fee and it will be a liability and the Journal transaction for this event will be as follows:
Dr. Cash $62,000
Cr. Unearned Management Fees $62,000
So the correct option is C) Credit to Unearned Management Fees for $62,000.
Answer: (3) An indirect marketing channel
Explanation:
An indirect marketing channel is one of the type of business process in which the various types of organizations and companies are promoting their products and the services in the market by using the indirect method.
When we using the indirect marketing channel for the purpose of distribution the products in the market it is basically going through some additional type of steps for passing some information related to the products so that the customers are get attracted.
According to the question, the given example of the priceless creations is best illustrating abut an indirect marketing channel. Therefore, Option (3) is correct answer.
Answer:
Explanation:
A. Profit margin*Total asset turnover=Return on assets(investment)
0.07*TAT=25.2
TAT=360
B. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.5)=50.40%
C. Return on equity=Return on assets/(1-debt/assets)=25.2/(1-0.35)=38.77%
Answer:
77.5 units
Explanation:
Given that,
Lot size = 155 units
Raw material cost = $150
value added in manufacturing per unit = $300
Total cost per unit = $450
Lead time = 30 weeks
Annual demand = 4,200 units
Average cycle inventory = Lot size ÷ 2
= 155 ÷ 2
= 77.5 units
Value = Average cycle inventory × cost per unit
= 77.5 × $450
= $34,875
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