Answer: d. The production activities in the first stage and the unit of product in the second stage
Explanation:
Activity based Costing is primarily a method of assigning indirect costs like administrative expenses to the goods and services manufactured by a company by basing it on the activities of the company.
With Activity Based Costing, the company aims to figure out how much these aforementioned activities cost first and then calculating the cost per unit in the second stage by assigning cost per level of activity.
Answer:
False
Explanation:
Operating income reported under absorption costing will be smaller than operating income when quantities of products manufactured are less than the quantities sold (Sales > Production). This is because Fixed costs deferred in inventory will be falling and the costs of sales in absorption cost will be rising.
Answer:
A) We need to determine the n in the following equation: FV = PV (1 + r)ⁿ
r = 9% ; FV = 32,000 ; PV = 18,000
32,000 = 18,000 (1.09ⁿ)
32,000 / 18,000 = 1.09ⁿ
1.7778 = 1.09ⁿ
n = (log 1.7778) / (log 1.09) = 6.68 years
B) FV = 18,000 (1.09⁹°⁷⁵) = 18,000 x 2.32 = $41,704
C) if r = 4% ; FV = 32,000 ; PV = 18,000
n = (log 1.7778) / (log 1.04) = 14.67 years
if r = 12% ; FV = 32,000 ; PV = 18,000
n = (log 1.7778) / (log 1.12) = 5.08 years
D) The higher the interest rate, the shorter it takes for money to grow to a certain amount. The higher the interest rate, the more money you will have after a certain amount of years.
Answer:
The complete answers are below.
Explanation:
a) The main difference between Financial Accounting and Managerail Accounting is its purposes and the stakeholders who make use of the information that each one provides.
While financial accounting refers to the aggregation of accounting information in the financial statements, management accounting refers to the internal processes used to account for business transactions.
For instance: Financial accounting reports on the results of an entire business, Managerial accounting reports at a more detailed level. Financial accounting must comply with various accounting standards, whereas managerial accounting does not have to comply with any standards when information is compiled for internal consumption.
b) The financial statements most frequently provide are: Balance Sheet or Financial Position, Income Statement, Statement of cash flows and Statement of Changes in Equity.
c) In general, financial reports and financial statements differ in the formal status of financial statements in business and accounting, and these respond to standards such as GAAP and IFRS. While the financial reports have a format or presentation rules given by management, the financial statements, in the other hand, are prepared on regular basis as specific entities are required to do so according to applicable laws. It can be said that financial accounting provides financial statements and managerial accounting is responsible for financial reports.
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