Valentin Zukovsky says that liquidity and solvency are the same thing. Is he correct? If not, how do they differ?
Click here for the solution: Valentin Zukovsky says that liquidity and solvency are the same thing
Showing posts with label same. Show all posts
Showing posts with label same. Show all posts
Sunday, September 20, 2015
Sunday, September 6, 2015
If two service departments service the same number of departments, which service department's costs are allocated first when using the step method
1. If two service departments service the same number of departments, which service department's costs are allocated first when using the step method?
2. Which of the following service department cost allocation methods is most widely used by manufacturing companies?
3. Which of the following statements is (are) false regarding the effective use of management control systems.
(A) In general, cost allocations should not be used in management control systems because clear control over the cost being allocated cannot be determined.
(B) The primary reason to use a dual rate allocation system is to focus a manager's performance evaluation on factors under the manager's direct control.
4. The amount of resources used in an activity-based costing (ABC) system for a specific activity is computed by multiplying the:
5. Which of the following statements is false?
6. In general, the first budget prepared is the
7. Relative performance evaluations (RPE) are not designed to
8. Which of the following items would be classified as a batch-level cost in an activity-based cost management (ABM) system?
9. Which of the following activities is most likely to be classified as value-added for a manufacturing company?
10. The unused resource capacity is the difference between the resources supplied and the resources
Click here for the solution: If two service departments service the same number of departments, which service department's costs are allocated first when using the step method
2. Which of the following service department cost allocation methods is most widely used by manufacturing companies?
3. Which of the following statements is (are) false regarding the effective use of management control systems.
(A) In general, cost allocations should not be used in management control systems because clear control over the cost being allocated cannot be determined.
(B) The primary reason to use a dual rate allocation system is to focus a manager's performance evaluation on factors under the manager's direct control.
4. The amount of resources used in an activity-based costing (ABC) system for a specific activity is computed by multiplying the:
5. Which of the following statements is false?
6. In general, the first budget prepared is the
7. Relative performance evaluations (RPE) are not designed to
8. Which of the following items would be classified as a batch-level cost in an activity-based cost management (ABM) system?
9. Which of the following activities is most likely to be classified as value-added for a manufacturing company?
10. The unused resource capacity is the difference between the resources supplied and the resources
Click here for the solution: If two service departments service the same number of departments, which service department's costs are allocated first when using the step method
Saturday, August 15, 2015
E14-5 Assume the same information as in E14-4, except that Foreman Company uses the effective-interest method of amortization for bond premium or discount
E14-5 (Entries for Bond Transactions—Effective-Interest) Assume the same information as in E14-4, except that Foreman Company uses the effective-interest method of amortization for bond premium or discount. Assume an effective yield of 9.7705%.
Instructions
Prepare the journal entries to record the following. (Round to the nearest dollar.)
(a) The issuance of the bonds.
(b) The payment of interest and related amortization on July 1, 2011.
(c) The accrual of interest and the related amortization on December 31, 2011.
Click here for the solution: Assume the same information as in E14-4, except that Foreman Company uses the effective-interest method of amortization for bond premium or discount
Instructions
Prepare the journal entries to record the following. (Round to the nearest dollar.)
(a) The issuance of the bonds.
(b) The payment of interest and related amortization on July 1, 2011.
(c) The accrual of interest and the related amortization on December 31, 2011.
Click here for the solution: Assume the same information as in E14-4, except that Foreman Company uses the effective-interest method of amortization for bond premium or discount
Tuesday, July 7, 2015
Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year
Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year. The total of all production costs for the year is therefore as, summed to be equal to the cost of goods sold. With this in mind, the various department heads were asked to submit estimates is as follows:
Estimated Estimated Variable Cost
Fixed Cost (per unit sold)
Production costs
Direct materials…………………………………… − $30
Direct Labor………………………………………. − 20
Factory overhead…………………………………. $340,000 11
Selling expenses:
Sales salaries and commissions ………………… 80,000 5
Advertising …………………………………….. 32,000 −
Travel …………………………………………… 8,000 −
Miscellaneous selling expense …………………. 7,000 5
Administrative expenses:
Office and officers’ salaries……………………... 120,000 −
Supplies ………………………………………… 8,000 2
Miscellaneous administrative expense ………… 4,400 2
Total ……………………………………………. $600,000 $75
It is expected that 8,000 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 9,000 units.
Instructions
1. Prepare an estimated income statement for 2012.
2. What is the expected contribution margin ratio?
3. Determine the break-even sales in units and dollars.
4. Construct a cost-volume-profit chart indicating the break-even Sales.
5. What is the expected margin of safety in dollars and as a percentage of sales?
6. Determine the operating leverage.
Click here for the solution: Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year
Estimated Estimated Variable Cost
Fixed Cost (per unit sold)
Production costs
Direct materials…………………………………… − $30
Direct Labor………………………………………. − 20
Factory overhead…………………………………. $340,000 11
Selling expenses:
Sales salaries and commissions ………………… 80,000 5
Advertising …………………………………….. 32,000 −
Travel …………………………………………… 8,000 −
Miscellaneous selling expense …………………. 7,000 5
Administrative expenses:
Office and officers’ salaries……………………... 120,000 −
Supplies ………………………………………… 8,000 2
Miscellaneous administrative expense ………… 4,400 2
Total ……………………………………………. $600,000 $75
It is expected that 8,000 units will be sold at a price of $200 a unit. Maximum sales within the relevant range are 9,000 units.
Instructions
1. Prepare an estimated income statement for 2012.
2. What is the expected contribution margin ratio?
3. Determine the break-even sales in units and dollars.
4. Construct a cost-volume-profit chart indicating the break-even Sales.
5. What is the expected margin of safety in dollars and as a percentage of sales?
6. Determine the operating leverage.
Click here for the solution: Blythe Industries Inc. expects to maintain the same inventories at the end of 2012 as at the beginning of the year
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