Answer:
the answer is D
Explanation:
Disagree. Cost accounting data plays a key role in many management planning and control decisions. The division president will be able to make better operating and strategy decisions by being involved in key decisions about cost pools and cost allocation bases. Such an understanding, for example, can help the division president evaluate the profitability of different customers The salary of a plant security guard would be a direct cost when the cost object is the security department of the plant. It would be an indirect cost when the cost object is a product. Exhibit 14-1 outlines four purposes for allocating costs:
1. To provide information for economic decisions.
2. To motivate managers and employees.
3. To justify costs or compute reimbursement.
4. To measure income and assets for reporting to external parties.
Exhibit 14-2 lists four criteria used to guide cost allocation decisions:
1. Cause and effect.
2. Benefits received.
3. Fairness or equity.
Ability to bear. The cause-and-effect criterion and the benefits-received criterion are the dominant criteria when the purpose of the allocation is related to the economic decision purpose or the motivation purpose. Using the levels approach introduced in Chapter 7, the salesvolume variance is a Level 2 variance. By sequencing through Level 3 (salesmix and salesquantity variances) and then Level 4 (marketsize and marketshare variances), managers can gain insight into the causes of a specific sales-volume variance caused by changes in the mix and quantity of the products sold as well as changes in market size and market share. The total salesmix variance arises from differences in the budgeted contribution margin of the actual and budgeted sales mix. The composite unit concept enables the effect of individual product changes to be summarized in a single intuitive number by using weights based on the mix of individual units in the actual and budgeted mix of products sold. A favorable salesquantity variance arises because the actual units of all products sold exceed the budgeted units of all products sold. The salesquantity variance can be decomposed into (a) a marketsize variance (because the actual total market size in units is different from the budgeted market size in units), and (b) a market share variance (because the actual market share of a company is different from the budgeted market share of a company). Both variances use the budgeted average contribution margin per unit.
B. To focus on a global market.
Answer:
Price = $40
P/E ratio = 10 times
Explanation:
The formula to compute the price earning ratio is shown below:
Price-earnings ratio = (Market price per share) ÷ (Earning per share)
where,
Market price per share = Next year dividend ÷ (Required rate of return - growth rate)
Next year dividend equal to
= Earnings × (1 - plow back ratio)
= $4 × (1 - 0.30)
= $2.8
Growth rate is = 20% × 0.30 = 6%
And, the required rate of return is 13%
So, the market price per share would be
= 2.8% ÷ (13% - 6%)
= $40
Now the price earning ratio would be
= $40 ÷ $4
= 10 times
Answer: a. Controlling
Explanation:
The Controlling function in management is meant to ensure that employees in a company are acting in a manner that abides by the standards of the company or organization in question.
It works by managers ensuring that they check that employees are acting in the way they are to act and if they are not, corrective action must be meted out to stop the behavior.
The Secret Service had some embarrassing moments in 2015 with some agents being found drunk on a trip to Europe where they were assigned to President Obama's detail. Had supervisors been making sure that subordinates acted in a manner befitting of the secret service, the acts would have had a significantly less chance of happening.
Ok let me state that if it is reduced by 25% is the same a multiplied by 0.75. Increased by 20% is the same as multiplied by 1.20. So what you need to do is multiply the two multipliers together to get the net effect. Now let me give you an example: <span>If I sell 100 things a day and sales go up 20% I sell 120 things a day. That is the same as multiplying sales by 1.20. So the formula you can use is
Gross Receipts = Sales Price * Number of units sold.
If I change Sales Price and Number of units sold each by simple multipliers, the effect on Gross Receipts will be the product of the multipliers. I hope this helps</span>
