Answer:
Department 1: $34,800
Department 2: $56,840
Department 3: $24,360
Explanation:
Statement showing allocation of advertisement expenses based on departmental sales:
Department 1:
Percentage of Total sales = (Department 1 sales ÷ Total sales) × 100
= ($273,000 ÷ 910,000) × 100
= 30%
Allocated amount:
= Percentage of Total sales × Advertising costs
= 30% × $116,000
= $34,800
Department 2:
Percentage of Total sales = (Department 2 sales ÷ Total sales) × 100
= ($445,900 ÷ 910,000) × 100
= 49%
Allocated amount:
= Percentage of Total sales × Advertising costs
= 49% × $116,000
= $56,840
Department 3:
Percentage of Total sales = (Department 3 sales ÷ Total sales) × 100
= ($191,100 ÷ 910,000) × 100
= 21%
Allocated amount:
= Percentage of Total sales × Advertising costs
= 21% × $116,000
= $24,360
Answer:
The correct answer is a. Prepared according to management needs.
Explanation:
Managerial Accounting Reports are designed and produced to help internal managers in planning for future and decision making process for the company. This is why Managerial Accounts are prepared according to management (the users of managerial accounts). Financial accounts needs to be prepared according to GAAP while there is no such requirement for preparing managerial accounts.
Answer:Lucas further advises that speakers do the following to establish their credibility: Explain to your audience why you are qualified to speak on the topic. Provide your own personal experience with your topic, if relevant. Demonstrate that you have done sufficient research on the topic to speak about it with authority.
Explanation:
The answer is Locational sensitive task.
Answer:
It describes the problem of transaction costs and negotiation.
Explanation:
Externalities are situations that arise when the activities of an organization affects another for good or bad, but with the first organization that caused the change, receiving no benefits (if it was a positive change), or bearing no costs (if it as a negative change).
Ronald Coase proposed some theories about the possible solutions to externalities. One of them is negotiation between the two parties involved. The problem with this solution is the high costs of transaction that could be spent before an agreement is reached. The number of people involved in the negotiation could also be a problem.
