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Rina8888 [55]
2 years ago
14

True or False: Cutting advertising expenses often causes an erosion of profit

Business
1 answer:
cupoosta [38]2 years ago
8 0

Answer:

So True

Explanation:

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Better Chocolates has a new project that requires $838,000 of equipment. What is the depreciation in Year 6 of this project if t
DIA [1.3K]

Answer:

d. $74,749.60 ( depreciation allowance @ 8.92% )

Explanation:

Under Modified Accelerated Cost Recovery System the Office furniture and fixtures, agricultural machinery and equipment, any other property not associated with another class is classified as 7-years property.

These assets are depreciated as follows:

Year         Percentage Depreciate

  1                              14.29%

  2                             24.49%

  3                             17.49%

  4                             12.49%

  5                             8.93%

  6                             8.92%

  7                             8.93%

  8                             4.46%

In the Sixth year depreciation will be charged by 8.92%.

Asset Value = $838,000

Depreciation Allowance in 6th year = $838,000 x 8.92%

Depreciation Allowance in 6th year = $74749.60

*Option for the given Mcqs are missing and written as follows:

Select one:

a. $80,411.60

b. $74,833.40

c. $89,108.00

d. $74,749.60

e. $89,327.08

4 0
3 years ago
Aspen Company estimates its manufacturing overhead to be $515,000 and its direct labor costs to be $515,000 for year 2. Aspen wo
Step2247 [10]

Answer:

COGS    3807 debit

FG          7896 debit

WIP         2397 debit

  Factory Overhead  14,100 credit

--to record the underapplication of overhead--

Explanation:

overhead rate:

\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate

$515,000 overhead /  515,000 labor cost = $1

each labor cost generates a dollar of overhead.

221,400 x 1 =   221,400 overhead in COGS

459,200 x 1 = 459,200 overhead in Finished Goods

139,400 x 1 =   139,400 overhead in WIP inventory

Total applied  820,000

Actual            805,900

Underapplied    14,100

Now we weight each concept and determiante the portion underapplocated in each concept

\left[\begin{array}{cccc}Item&Value&Weight&Allocated\\COGS&221400&0.27&3807\\FG&459200&0.56&7896\\WIP&139400&0.17&2397\\&&&\\Total&820000&1&14100\\\end{array}\right]

4 0
3 years ago
Allstar Exposure designs and sells advertising services to small, relatively unknown companies. Last month, Allstar had sales co
Mariana [72]

Answer:

1. Prepare an income statement for Allstar for the past month.

The income statement is given below.

Sales                              $ 410,000

Commission Cost          ($ 50,000)

Technology Cost           ($ 75,000)

R/D Cost*                       ($ 200,000)

Selling expenses             ($ 10,000)

Admin expenses             ($ 35,000)

Net profit                          $ 40,000

* In absence of information it is assumed that research and development costs of $200,000 meet defination of expense as per accounting standard (IAS 38).

2. Briefly explain why Allstar's income statement has no line for cost of goods sold.

As per question Allstars is a service oriented company. In services oriented company there is no good that company is manufacturing and selling. So there will not be any cost of good sold line item in income statement.

6 0
3 years ago
Read 2 more answers
Chance to win 50 points
Elenna [48]

Answer:

2nd place

Explanation:

I feel like this is the right answer, I'm just guessing.

8 0
2 years ago
Read 2 more answers
Most operating decisions of management focus on a narrow range of activity called the______________.
antoniya [11.8K]

Answer:

C. Relevant range of production

Explanation:

3 0
3 years ago
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