Could you provide your feedback to these Accounting questions below? 1. In what situation would payroll be considered a variable cost? 2. Do you think that unallocated costs are something to avoid, a necessary evil, or an integral part of business? 3. When do direct costs become tax deductible?
You are an accountant at a small accounting firm. One of your clients is looking to open a small river-rafting business. Your client will run the business operations from a mobile home office on a piece of land on the riverbank. Your client must decide the best location to start this business and has asked you to explain the acc
See attached file for template. Sammy Company manufactures and sells one product. The following information pertains to each of the company's first two years of operations: Variable costs per unit: Manufacturing: Direct materials $ 20 Direct labor $ 12 Variable manufact
1. All costs are either fixed or variable. The only difficulty in cost analysis is determining which of the two categories each cost belongs to. Do you agree? Explain. 2. Distinguish between direct, indirect, and unallocated costs. Can the same cost can be both direct and indirect? Explain your answer?
Chapter 24, question 2, Intermediate Accounting What is the full disclosure principle in accounting? Why has disclosure increased substantially in the last 10 years? Explain the need for full disclosure in financial reporting. Identify possible consequences of failing to properly disclose certain items in financial stateme
Do you think that the size and value of the product are playing a major role in going online (Internet) option? For example consumer approach to buy a book will be different then buying a car online. Please include any references
What are the benefits and disadvantages to performance assessment systems in organizations? Why should management accountants be involved in the establishment and use of those measures? To what extent are these measures and assessments reliable and accurate?
What are the relative tradeoffs in assessing and utilizing cost accounting systems? Why do these approaches to cost accounting differ among nations or do they? How should companies approach the challenge of developing meaningful systems which are universally accepted?
Andre has asked you to evaluate his business, Andre's Hair Styling. Andre has five barbers working for him. (Andre is not one of them.) Each barber is paid $9.90 per hour and works a 40-hour week and a 50-week year, regardless of the number of haircuts. Rent and other fixed expenses are $1,750 per month. Hair shampoo used on all
http://www.middlecity.com/ch18.shtml In 50 words discuss: Why might the inclusion of indirect overhead costs in the calculation of the cost of a product provide us with a number that is very useful? For what purposes is such a calculation possibly useful?
Using the GDS or OTA's costs the hotels companies money to use the service. How have hotel companies tried to reduce these costs? How are hotel companies using the best rate guarantee to compete with the OTA's?
THE FOLLOWING INFORMATION APPLIES TO QUESTIONS 20 THROUGH 22. Marguerite, Inc., expects to manufacture and sell 20,000 pool cues for $12.00 each. Direct materials costs are $2.00, direct manufacturing labor is $4.00, and manufacturing overhead is $0.80 per pool cue. The following inventory levels apply to 20x4: Beginning
E14-10 (Entries for Bond Transactions) On January 1, 2007, Aumont Company sold 12% bonds having a maturity value of $500,000 for $537,907.37, which provides the bondholders with a 10% yield. The bonds are dated January 1, 2007, and mature January 1, 2012, with interest payable December 31 of each year. Aumont Company allocates
1. You stated a good comparison between cash basis accounting and accrual basis. Many accountants believe that the cash basis of accounting fails to match efforts and accomplishments of a company in a manner that measures economic performance and true financial position. For instance, if a bill is received in January for Decembe
Which is a characteristic of management accounting? - It must follow generally accepted accounting principles -It is used primarily by internal users. - it is concerned primarily with reporting past performances. - it uses historical costs as the sole measurement unit. An example of a period cost is? - Advertising cost.
Jim and Mary's Inc. stock currently sells for $75 per share. The firm has total assets of $1,000,000 and total liabilities, including preferred stock, of $350,000. If the firm has 10,000 shares of common stock outstanding. a) What is the book value of each share of common stock? b) Is the stock overvalued or undervalued? c)
Describe the source documents and controls that would be included in a typical production cycle. Explain Topic is Internal Control in a production cycle. Level: Master in Accounting.
Use the following information to answer the next two questions. On May 1, 2011, Arrow Company borrowed $10,000 from the State Bank at 9 percent annual interest. The note issued by Arrow had a one-year term. Arrow reported cash revenue of $3,400 and $800 in 2011 and 2012, respectively. 1. What is Arrow's net income for 20
4. An equipment manufacturer has the following steps in its order entry process: a. Take the order and fax it to order entry. b. Enter the order into the system (10 percent unclear or incorrect). c. Check stock availability (stock not available for 15 percent of orders). d.
Managers should base pricing decisions on both cost and market factors. 1. Managers should base pricing decisions on both cost and market factors. In addition, they must also consider legal issues. Describe the influence that the law has on pricing decisions. 2. "It is impossible to use DCF methods for evaluating investmen
Mona, a calendar-year taxpayer, uses the cash-basis method of accounting for her whole proprietorship. In late December she received a $20,000 bill from her accountant for consulting services related to her small business. Mona can pay the $20,000 bill any time before January 30 of next year without penalty. Assume her margin
The ABC Floral Shop sold the following number of geraniums during the last 2 weeks: Day Demand Day Demand 1 200 8 150 2 134 9 182 3 157 10 197 4 165 11 136 5 177 12 163 6 125 13 157 7 146 14 169 Develop a spreadsheet to answer the following questions. > Calculate a forecast of the above demand using a 3- and 5-p
ROOSTERFISH CORPORATION Roosterfish had a tax liability for 20X7 of $20,000 based on a tax rate of 40%. The accounting staff of Roosterfish is having trouble putting together the 20X7 financials. They need your help in determining the tax expense and deferred tax amounts for 20X7. The enacted tax rates for the future peri
How has the Internet affected price considerations? Analyze several different industries, such as airlines, sales, hotel reservations, and book sales.
What are tax loopholes? How do loopholes arise? Do you think it is ethical to take advantage of tax loopholes?
Could you please help me with the given questions?: What is the effective tax rate? When is this used?
Smithton, Inc. makes and sells one product, the standard costs of which are as follows: Direct materials (2 kg at 3.00/kg) = 6.00 Direct labour (30 minutes at 10.00/hr) = 5.00 Fixed overheads = 2.50 Total = 13.50 Selling price = 20.00 Standard profit margin = 6.50 The monthly production and sales are planned to be
Zhang Incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100% of the corporation's stock. The property transferred to the corporation had the following Fair Market Value and Tax Adjusted Basis. FMV Tax
Client Consultation: The internal auditor from a Fortune 500 company would like to have a consultation with your forensic accounting firm. The internal auditor and members of the staff suspect irregularities in cash outflows, specifically in the areas of check tampering and employee reimbursements. Question 1: What is ch
Explorer Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 900 units. The costs and percentage completion of these units in beginning inventory were: Materials costs $10,500 -- 75% complete Conversion costs $6,400 --