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maks197457 [2]
3 years ago
11

Will the financial statements of a company always differ when different choices at the start of the accounting period are made r

egarding the​ denominator-level capacity​ concept?
A. No. It depends on how a company handles the​ production-volume variance in the​ end-of-period financial statements. For​ example, if the adjusted​ allocation-rate approach is​ used, each​ denominator-level capacity concept will give the same financial statement numbers at​ year-end.
B. Yes. If different choices at the start of the accounting period are made regarding the​ denominator-level capacity​ concept, this will always result in different financial statement numbers at​ year-end.
C. Yes. The four different​ capacity-level concepts result in four different budgeted fixed manufacturing overhead cost rates per​ unit, which in turn leads to different results being reported on the financial statements.
D. No. It depends on how a company handles the​ production-volume variance in the​ end-of-period financial statements. For​ example, if the​ write-off approach is​ used, each​ denominator-level capacity concept will give the same financial statement numbers at​ year-end. Click to select your answer.
Business
1 answer:
german3 years ago
4 0

Answer:

Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the​ denominator-level capacity​ concept?

A. No. It depends on how a company handles the​ production-volume variance in the​ end-of-period financial statements. For​ example, if the adjusted​ allocation-rate approach is​ used, each​ denominator-level capacity concept will give the same financial statement numbers at​ year-end.

Explanation:

Level capacity strategy

The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall

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The gas station on the edge of town has gas that is 30c/gallon cheaper than my local station. I buy 10 gallons of gas a week. As
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Answer:

No

Explanation:

Because its better u save 0.3*10=3 dollars but I value my time for $5 for that half an hour and hence its better not to go considering opportunity cost.

3 0
3 years ago
How would the issuance of common stock for cash affect the accounting​ equation?
shepuryov [24]

Answer:

Explanation:

The journal entry to record the given transaction is shown below:

Cash A/c Dr XXXXX

    To Common stock A/c XXXXX

(Being the issuance of the common stock is recorded)

The accounting equation is

Total Assets = Total liabilities + Stockholder equity

Cash Increased = No effect    + Increased

Therefore, the cash account and the common stock is increased.

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3 years ago
For normal goods, the demand curve is: A. upward sloping only if the income effect is larger than the substitution effect. B. al
Kruka [31]

Answer:

B) always downward sloping.

Explanation:

The demand curve for normal goods is always downward sloping because of a combination of three factors:

  1. the purchasing power of the customers decrease and if the price of a product increases, consumers will be able to buy less even if they don't want to
  2. consumer surplus decreases since the difference between how much a consumer is wiling to pay for the good and its actual price decreases or even becomes negative, so they will not be willing to purchase it
  3. as the price of normal goods increases, consumers will tend to increase the quantity demanded for substitute products

6 0
3 years ago
Riverbed Company sells goods that cost $320,000 to Ricard Company for $407,000 on January 2, 2020. The sales price includes an i
Alecsey [184]

Answer:

a) Journal entries to record the sale on January 2, 2020:

Debit Accounts Receivable with $407,000

Credit Sales Account with $368,500

Credit Deferred Revenue (Installation Fee) with $38,500

Being sales of goods and installation services.

b) Income Statement for 1st Quarter of 2020

Sales  -  $368,500

Installation Fee - $19,250

Total Income - $387,750

less cost of sales - $320,000

Net Income - $67,750

c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee).  The installation fee to be recognized is for 3 months only.

Explanation:

The installation fee is for 6 months.  Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.

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3 years ago
A farmer decides she wants to grow certified organic corn and sets out to meet all usda standards to do so. her crop grows well
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