Consolidation Rules Under GAAP
The general rule requires consolidation of financial statements when one company’s ownership interest in a business provides it with A MAJORITY OF the voting power- meaning it controls more then 50% of the voting shares
Answer:
2015 FAT= 4,168323393
2016 FAT= 3,87219893
Explanation:
2015 2016
sales plant 34209 38826
propierty 15768 17111
net sales 12580 13392
propierty net 3018 3899
FAT=Net Sales/Average Fixed Assets
2015 FAT=12580/3018
2018 FAT=13392/(3899-3018)
2015 FAT= 4,168323393
2016 FAT= 3,87219893
Answer: possible options:
A.growth market is to a differentiation-based strategy
B. broadly-defined target market is to a cost leadership strategy
C. growth market is to a cost-based strategy
D. technological innovation is to cost-based strategy
Answer is B
Explanation:
Companies that use a cost leadership strategy and those that use a differentiation strategy share one important characteristic: both groups try to be attractive to customers in general. These efforts to appeal to a broad range of consumers can be contrasted with strategies that involve targeting a relatively narrow niche of potential customers. These latter strategies are known as focus strategies (Porter, 1980).
Focused cost leadership is the first of two focus strategies. A focused cost leadership strategy requires competing based on price to target a NARROW MARKET. A firm that follows this strategy does not necessarily charge the lowest prices in the industry. Instead, it charges low prices relative to other firms that compete within the target market. For example, you might be able to buy milk cheaper by driving to a big-box grocery store in your local community or town, but the local corner store is the cheapest within walking distance. Redbox, a major DVD rental company, uses vending machines placed outside grocery stores and other retail outlets to rent DVDs of movies for $1. There are ways to view movies even cheaper, such as through the flat-fee streaming video subscriptions offered by Netflix. But among firms that rent actual DVDs, Redbox offers unparalleled levels of low price and high convenience.
Answer:
The journal entries are as follows:
(i) On March 31,
Finished Goods A/c Dr. $56,400
To Work in Process $56,400
(To record the completion of the two jobs)
(ii) On March 31,
Cash A/c Dr. $38,000
To sales $38,000
(To record the sale Job 10)
(iii) On March 31,
Cost of goods sold A/c Dr. $21,400
To finished goods $21,400
(To record the cost of the job sold)
Answer:
lower the cost of producing gasoline and increase the supply of gasoline
Explanation:
Crude oil is an input needed in the production of gasoline. If the price of crude oil falls, it would become cheaper to make gasoline and therefore the supply of gasoline would increase.
