Answer:
b. The indirect method
Explanation:
The Operating Activity Section Calculates the Net Cash flow from Operating Activities. It can be prepared in only two methods according to IAS 7.The methods are Indirect Method, Direct Method
Indirect Method Reconciles the Net Income for the Year to the Net Cash flow from Operating Activities after adjustments of Non- Cash flow Items, and Adjustments for Working Capital Movements.
Direct Method focuses on the Cash Inflows and Outflows related to the Operating activities to Calculate the Net Cash flow from Operating Activities.These Cash flows results from Receipts from Customers and Payments made to Suppliers and Employees
Answer:
d. $1,875 unfavorable
Explanation:
Direct material quantity variance is computed as;
= (AQ - SQ) × SP
AQ = Actual quantity = 6,300 units
SQ = Standard quantity = 14,200 / 2 = 7,300 units
SP = Standard price = $0.80
Direct material quantity variance
= (6,300 - 7,300) × 0.80
= -1,000 × $0.80
= -1,875 unfavorable
Answer:
That statement is true
Explanation:
In order to conduct a total cost analysis, a company need to calculate every single relevant cost that occurs within an operation or project from start to finish. From this, the company usually can find out about hidden costs that might occurs outside the initial plan.
The decision makers can use this options to make their decision in the future. If the total hidden cost is larger than ideal, they can either implement a new budgeting plan or implement policies that minimize the hidden cost.
<u>Solution and Explanation:</u>
The data of SAG of special order is given below:
Cost per unit = $3.50
, Allocated fix cost = $1.50
, Number of units in order = 15000
<u>Calculated the total cost of the special order as follows:
</u>
Incremental cost per unit = Cost per unit-Allocated fix cost =$(3.50 minus 1.50) =$2
Incremental cost per unit=cost per unit-allocated fix cost =$(3.50 minus1.50) =$2
Total incremental cost 15000 unit = number of units in order x Incremental cost per unit =15000 multiply $2 =$30000
Therefore, total cost of the special order is $30000
b) Offering price by ETU = $35000. Hence, the offer made by ETU would affect the short term of the special order.
Contribution cost = $(35000 minus 30000) =$5000
Answer:
The correct answer is letter "A": Length of relationship.
Explanation:
The Internal Revenue Service (IRS) 20-Point Test is a guideline aiming to determine if an individual is an employee or an independent contractor of a company for tax-related purposes. The test considers three main categories: <em>behavioral control, financial control, </em>and <em>the type of relationship between the individual and the company. </em>Independent contractors and employees are treated legally different and must be properly classified by firms to avoid lawsuits.
Therefore, <em>the length of a relationship between an individual and an organization is not considered at the moment of determining if that individual is an employee or a contractor.</em>