Answer:
For the salesman to more lucrative, the yearly business should be greater than $142857.1429.
Explanation:
let $x be the yearly business that the salesman must do
35,000 + 22%x > 45,000 + 15%x
7x/100 > 10000
7x > 1,000,000
x > $142857.1429
Therefore, for the salesman to more lucrative, the yearly business should be greater than $142857.1429.
Answer:
<u>Income statement according to the absorption costing</u>
Sales 2,600,000
Less Cost of Goods Sold
Opening Stock 0
Add Cost of Goods Manufactured
Direct materials 1,218,000
Direct labor 522,000
Variable factory overhead 87,000
Fixed factory overhead 130,500
Less Closing Stock (1,957,500/4,350)×350 (157,500) 1,800,000
Gross Profit 800,000
Less Period Costs :
Selling and administrative expenses:
Variable selling and administrative expenses (60,000)
Fixed selling and administrative expenses (25,000)
Net Income 715,000
Explanation:
<em>Product/Manufacturing Cost - Absorption Costing = Direct Materials + Direct Labor + Variable Overheads + Fixed Overheads</em>
<em>Period Cost - Absorption Costing = All Non - Manufacturing Costs</em>
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A depository institution is a financial institution in the United States.
Answer:
Financial accounting refer to the financial statement while, managerial is more focus into internal reports
In details, the most difference are as follows:
Aggregation.
Financing reports on the complete firm. While Managerial; at product, division or customer level.
Proven information.
Financing require certain criteria to ensure precision. It need to prove correct to third parties. While Managerial uses budget, forecast and estimated values.
Reporting focus.
Financial accounting is oriented toward outside
Managerial accounting analysis stays within a company.
Legislation:
Financial accounting faces the GAAP, IFRS and heavy legislation.
Managerial accounting doesn't
Time period.
Financial accounting has a historical orientation their reports are resumes of past transactions and operations.
Managerial accounting has a future orientation.
Timing.
Financial Statement are done at end of an accounting period.
Managerial accounting issues on demand of the board or supervisor.
