Answer:
debit the van account with $63,000
Explanation:
The Lindy's cost of the van is analyzed below:
Delivery van invoice price $60,000
discount ($4,000)
sales tax $5,000
cost of logo and advertising $2,000
annual insurance cost $0
Cost of the van $63,000
The sales tax is included as it cannot be reclaimed from the relevant tax authority.
Cost of logo and advertising even though looks like a revenue expense that should not be capitalized,but in actual terms is a cost incurred to bring asset to current position of being able to be recognized as belonging to Lindy's Flowers.
Answer:
Plan can be defined as the steps that you have set or layed down to achieve a goal
While goal are those things that you have planned to achieve in a lifetime, goals are mainly priorities. hope this helps
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Explanation:
Profit maximization objective can easily be manipulated and it is highly subjective. Management may decide to avoid some costs in the short-term such as Investment in Assets, Investment in R &D and other discretionary cost in order to have an impressive profit performance. In the long-run, the avoidance of this cost now may reduce the earnings capacity of the company assets.
Using profit as measure of performance for manager may encourages dysfunctional behavior.
In the true sense, profit generation may not translate into increase in the value of the company . For example, management may decide to reduce depreciation charge, decide to over state revenue or over valued inventory
On other hand, maximizing shareholder value is a long-term and sustainable objective that involved investing in viable projects with positive net present value to enhance the value of the company.
When this is used as a performance measure , it very difficult to manipulate in the short-term.
Answer:
Direct labor cost will be equal to $236000
Explanation:
We have given total manufacturing cost = $450000
Manufacturing overhead totaling is equal to $98000
And direct material totaling is equal to $116000
We have to find the direct labor cost
Direct labor cost is equal to
Direct labor cost = Total manufacturing cost - manufacturing overhead totaling - direct material totaling
= $450000 - $98000 - $116000 = $236000
So direct labor cost will be equal to $236000
