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3 years ago

What is one advantage of having 2 costs pools for each service department?

1 answer:

4 0

Having two cost pools for each service department allows costs to be allocated more directly on the basis of the cost drivers used to produce each output. This will result in increased product cost accuracy. This will also make it easier for managers to monitor and analysis cost behaviour.

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Jen's Fashions is growing quickly. Dividends are expected to grow at a 19 percent rate for the next 3 years, with the growth rat

Sedaia [141]

Answer:

Ans. Current Share Price=$33.85

Explanation:

Hi, we first have to establish the dividend for the first 3 years and the dividend when the growth rate falls off to a constant rate of 8% with the formula to find the present value of a perpetuity with constant growth rate. From there, we need to bring all the above cash flows to present value and that is the price of the share. The formula is as follows.

$Price=\frac{D1}{(1+r)^{1}}+\frac{D2}{(1+r)^{2} } +\frac{D3}{(1+r)^{3} } +\frac{D3(1+g)}{(r-g)} \frac{1}{(1+r)^{3} }$

To find D1, D2,and D3, we have to do this.

D1=Do(1+0.19)

D2=D1(1+0.19)

D3=D2(1+0.19)

Since 0.19 is the growth rate for 3 years. Everything should look like this

$Price=\frac{4.04}{(1+0.12)^{1}}+\frac{4.29}{(1+0.12)^{2} } +\frac{25.52}{(1+0.12)^{3} } +\frac{25.52(1-0.08)}{(0.12+0.08)} \frac{1}{(1+0.12)^{3} } =33.85$

notice that the sign of the last part do not coincide with the formula, that is because the growth rate from the first 3 years is -8%.

Best of luck.

7 0

3 years ago

What is the formula to work out profit

Nitella [24]

The main feature of this lesson is the equation P(x) = R(x) - C(x). Other important equations to remember are as follows: The breakeven point is when revenue equals cost, or when the profit is zero. Maximum profit will occur when marginal revenue equals marginal cost, or when the marginal profit is zero.

7 0

2 years ago

Philippe Organic Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $

solniwko [45]

Answer:

Current ratio= 1.3977

Explanation:

Current Ratio:

It is the measure of company ability to pay short term debits of one year. It also tells how company can increase its current assets.

Given:

Total assets=$689,400

Long-term debt=$198,375

Total equity= $364,182

Net fixed assets =$512,100

Sales = $1,021,500

Formula For current Ratio:

Current Ratio= $\frac{Total\ Assets-Net\ Fixed\ Assets}{Total\ Assets- long_term\ debt-total\ equity}$

$Current\ Ratio=\frac{\$689,400-\$512,000}{\$689,400-\$364,182-\$198,375}\\ Current\ Ratio=1.3977$

4 0

3 years ago

Peters Manufacturing Company has the following data at June 30, 2019:

nignag [31]

Answer:

Gross Profit $ 74,000

Cost of Goods sold $ 506,000

Explanation:

Peters Manufacturing Company

Income Statement

June 30, 2019

Sales $580,000

Total manufacturing costs 430,000

Add Work in process inventory, June 1 18,100

Cost of Goods Available for Manufacturing 548,100

Less Work in process inventory, June 30 30,400

Cost Of Goods Manufactured 517,700

Add Finished goods inventory, June 1 43,500

Cost Of Goods Available for Sale 561,200

Less Finished goods inventory, June 30 55,200

Cost of Goods sold $ 506,000

Gross Profit $ 74,000

5 0

3 years ago

In order to be impartial and lawful, a pre- inspection agreement must be

lakkis [162]

A. paid for by the lender.
B. signed by the real estate agent. 
C. used within 30 days 
D. negotiable and capable of being altered. 

The Standards of Practice published by the American Society of Home Inspectors (ASHI) are quite inclusive and 
A. describe the procedures used in a termite inspection. 
B. explain that inspectors may never examine heating systems. 
C. can be referred to in court, if necessary. 
D. list the fees inspectors must charge for their services 
(I know for this question it is NOT D.) 

Another term for a pre-inspection agreement is 
A. standard of practice 
B. pre-sale inspection. 
C. scope of work. 
D. partial inspection.
hope that helped

8 0

3 years ago

Read 2 more answers