Answer:
A. future conditions can be different from the past
Explanation:
A limitation of using past performance as a basis for judging actual results is that future conditions can be different from the past. Many factors within a business can change as time progresses and all of which act as variables when determining performance. Therefore a change in one of these variables can drastically change the performance in the present even though everything else in regards to the business is the same as it was in the past.
Answer:
The minimum transfer price that the Alabama Division should accept is $60 per unit.
Explanation:
The division providing the goods internally often has the opportunity to sell these same goods externally instead and so the minimum they will be willing to charge another division is cost plus their profit margin (i.e. the minimum they would normally charge an external customer).
the minimum price to be charged is :
Variable cost per unit = $24
Fixed Cost per unit = $15
Total Cost per unit = $39 and the profit margin when added makes its selling price to be equal to $60 (i.e. the price which is to be charged from outside customers).
Alabama Division will cover its minimum opportunity cost i.e. its sales price to the external customers which it will charge from Arkansas division .
Minimum transfer price = $60 per unit.
Therefore, The minimum transfer price that the Alabama Division should accept is $60 per unit.
Answer: 45 containers
Explanation:
The number of containers needed is calculated by:
= (Expected demand during Lead time + Safety Stock) / Container Capacity
Expected demand during Lead time = Daily demand * Lead time
= 2,500 * 3
= 7,500 units
Safety stock = 1.5 days * 2,500
= 3,750 units
Number of containers needed:
= (7,500 + 3,750) / 250
= 45 containers
Answer:
less expansive
Explanation:
i took the test. i got it right
Answer:
Debit Bad debt expense $19,000
Credit Allowance for doubtful debt $19,000
Explanation:
When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.
To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.
Where a debit that had previously been determined to have gone bad gets settled, debit cash and credit bad debt expense.
Amount that may be uncollectible
= 4% * $600,000
= $24,000
Given that the Allowance for Doubtful Accounts has a $5,000 credit balance before adjustment, the additional amount to be adjusted for
= $24,000 - $5,000
= $19,000
