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3 years ago

10

A sound allocation system should: be cheap and easy to administer provide incentives for cost control charge in proportion to am

ount used or benefit received be perceived as equitable by those who are charged be all of the above

1 answer:

Simora [160]3 years ago

6 0

The correct answer is d

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A firm is considering the acquisition of a new machine. The base price is $85,000 and it would cost $15,000 to install. The mach

Naddik [55]

Answer:

Cash flow year 0 (110,000)

or in other way to express it: a cashoutflow for $110,000

Explanation:

Initial net cahs outflow

this will be the acquisition of the machine cost plus the increase in the working capital for the company

machine cost: all cost necessary for acquire the machien and get it operational

supplier list price 85,000

installation cost <u> 15,000</u>

total cost 100,000

Increase in Working Capital Cost 10,000

As these are cost they are negative so we have a cashouflow

Total cashflow (110,000)

4 0

3 years ago

3. According to their comparative advantage, Alphaland specializes in axes and Betaville specializes in batons. Alphaland will t

Nady [450]

Answer: Option (C) is correct.

Explanation:

A country has a comparative advantage in producing a commodity if the opportunity cost of producing that good is lesser in that country as compared to the other country.

From the information given in the question, it is clear that Alphaland has a comparative advantage in axes and Betaville has a comparative advantage in batons.

Hence, Alphaland will trade axes for batons only if the price of batons is lower than the cost of producing it in Alphaland. So that there is a possibility mutually beneficial trade.

7 0

3 years ago

Norma Smith is the controller of Bramble Corporation and is responsible for the preparation of the year-end financial statements

melisa1 [442]

Answer:

Current liability refers to the short term obligations of the firm which need to be settled down within a period of one year or within a normal operating cycle.

(a) $0 would be reported as current liability, as it is not a current liability. It is a contingent liability.

(b) The amount of current liability is $192,900 because it is a liability of a firm to pay bonuses to the employees.

(c) The amount of current liability is as follows:

= $900,000 × 0.08 × (1/12)

= $6,000

Payment of interest on loan is a liability of the firm.

(d) $0 would be indicated in current liability, because provision for doubtful accounts is subtracted from the total accounts receivable to determine the net account receivables.

(e) Proposed dividend is a part of current liability and the amount of dividend to be shown as current liability is as follows:

= Dividend per share × No. of shares outstanding

= $3.50 per share × 41,810

= $146,335

(f) Customer advances is a current liability and the amount of customer advances to be reported in current liability is calculated as follows:

= Customer advances - Amount earned this year

= $193,100 - $57,900

= $135,200

6 0

3 years ago

Wage and tips income

Shkiper50 [21]

Answer:

D

Explanation:

All tips income is taxable

4 0

3 years ago

Read 2 more answers

In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following ord

Dahasolnce [82]

Answer:

Find the detailed answer below

Explanation:

January 1 300 units at $5 $1,500

January 8 500 units at $9 $4,500

January 29 910 units at $10 $9,100

1,110 units are available at the end of the month. That means 600 units were sold

A. Under FIFO

1. Cost of goods available for sale:

$1,500 + $4,500 + $9,100 = $15,100

2. Cost of goods sold

300 units at $5 $1,500

300 units at $9 $2,700

Total $4,200

3. Ending inventory

200 units at $9 $1,800

910 units at $10 $9,100

Total $10,900

B. Under LIFO(Last in First Out)

1. Cost of goods available for sale:

$1,500 + $4,500 + $9,100 = $15,100

2. Cost of goods sold

600 units at $10 $6,000

Total $6,000

3. Ending inventory

310 units at $10 $3,100

500 units at $9 $4,500

300 units at $5 $1,500

Total $9,100

C. Weighted average cost flow assumption: Cost of goods available for sale / total units

1. Cost of goods available for sale:

$1,500 + $4,500 + $9,100 = $15,100

2. Cost of goods sold

$15,100 / 1,710 = $8.83

$8.83 x 600 = $5,298

3. Ending inventory

$8.83 x 1,110 = $9,801.3

Under perpetual Inventory System

Between January 9 and January 28. The prevailing price that will be used to sell the inventory will be the price at January 8($9)

1. Cost of goods available for sale:

$1,500 + $4,500 + $9,100 = $15,100

2. Cost of goods sold

600 units at $9 $5,400

Total $5,400

3. Ending inventory

1,110 units at $9 $9,990

Total $9,990

6 0

2 years ago