On January 20, a payroll check is automatically deposited. What is the current balance?

Which of the following statements is true? A. The law requires a home inspection prior to every property transaction. B. Most ho

SOVA2 [1]

The correct option is A.
Home inspection refers to the examination of the condition of a home prior to buying. Home inspections are usually conducted by professional home inspectors who had been trained on that field. The law demands that a property should be inspected prior to buying and selling of that property. Home inspection is done purposely to identify any problem that might be associated with the property.

8 0

3 years ago

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that

kkurt [141]

Complete Question:

Harvey Automobiles uses a standard part in the manufacture of several of its trucks. The cost of producing 40,000 parts is $130,000, which includes fixed costs of $70,000 and variable costs of $60,000. The company can buy the part from an outside supplier for $3 per unit, and avoid 30% of the fixed costs.

Assume that factory space freed up by purchasing the part from an outside source can be used to manufacture another product that can be sold for $13,000 profit. If Harvey Automobiles makes the part, what will its operating income be?

A. 156,000 greater than if the company bought the part

B. 26,000 less than if the company bought the part

C. 26,000 greater than if the company bought the part

D. 62,000 greater than if the company bought the part

Answer:

Option C. 26,000 greater than if the company bought the part

Explanation:

Option A: In House manufacturing of 40,000 parts:

Variable Cost is always Relevant and is ($60,000)

The Fixed cost is always irrelevant unless it is specific fixed cost related to the decision. Hence Fixed cost is irrelevant here.

Option B: If we purchase from outsiders

The purchase cost of the product is variable cost hence it is relevant as it is always relevant.

Purchase Cost = $3 * 40,000 parts ($120,000)

The decrease or increase in the cost or income, due to a decision is always relevant. The decrease in cost is Opportunity income or benefits and is given as under:

Decrease in Fixed cost by 30% = $70,000 * 30% $21,000

Now the additional profit that will arise as we can manufacture additional parts of another Product B. This is only possible if we free factory space by purchasing parts of Product A from outsiders. This additional manufacturing of Product B parts will generate profit of $13,000 and thus is a relevant income here. It is also referred to as Opportunity Income.

Opportunity Income $13,000

Total Relevant Cost ($86,000)

<h2>Decision</h2>

The cost of option A is lower from Option B by $26000 ($86000 - $60000). Hence the operating income would be higher by $26,000 if the company manufactures in-house rather purchasing 40,000 parts from outsiders.

Option C is correct option here.

5 0

4 years ago

Grand River Corporation reported taxable income of $600,000 in year 1 and paid federal income taxes of $155,000. Not included in

Paul [167]

Answer:

$444,000

Explanation:

current earnings and profits = (taxable income - income taxes) - meals expense + tax exempt income = ($600,000 - $155,000) - $3,000 + $2,000 = $444,000

Disallowed expenses are expenses made by an individual or company that the IRS doesn't allow to be deducted, e.g. meals. Tax exempt income is income that is not taxed by the IRS, e.g. DRD includes at least 70% of dividends received.

Deferred gains or unearned revenues are considered a liability and are not included in the income statement.

7 0

3 years ago

According to Fiedler’s contingency theory of leadership, leader behaviors are__________( easy , Hard) to change, and ___________

spin [16.1K]

Answer:

According to Fiedler’s contingency theory of leadership, leader behaviors are easy to change, and people oriented leaders perform best in intermediately favorable situations.

Explanation:

The leadership style is easy to change, so if the company had a very strict leader in terms of rules, with this new leader the strategy of listening to employees should be used, since they still have respect for superiors , so the strategy that this new manager should have must be to fix all the deficiencies that the previous manager had and organize the establishment.

8 0

4 years ago

Which of the following is a difference between programmed decisions and nonprogrammed decisions? a. Unlike nonprogrammed decisio

Anna [14]

Answer:

a.

Explanation:

The main difference between these two types of decisions is that unlike nonprogrammed decisions, programmed decisions are made in response to recurring organizational problems. That is because programmed decisions are decisions that are made based on an already created guideline or procedure due to the problem occurring various times before.

7 0

3 years ago