Answer:
c.
Explanation:
Based on the information provided within the question it can be said that the lower limit for setting the transfer price will be the variable cost of production for coil division. This is because the coil division price for it's coils is what is being looked at since it is determined by their production output and their capacity to meet the compressor division's requirements.
Answer: $39,500
Explanation:
Service Cost for the year = Ending PBO - Opening PBO - Interest cost + Benefits paid
<u>Opening PBO</u>
Opening PBO is the amount that the interest was charged on.
Discount rate of 10% came out to be $7,500.
The opening balance = 7,500/10%
= $75,000
Service Cost = 112,000 - 75,000 - 7,500 + 10,000
Service Cost for the year = $39,500
Bureaucracy is a formal system of of organization and administration designed to ensure the efficiency and effectiveness. *Bureaucratic Structure*
Answer:
Amount to be paid = $6,000
Explanation:
Trade discount is the reduction in the list price granted to a buyer. A 40% trade discount implies that Blue would have to pay only 60% of the list price.
The amount due for settlement = 10,000 - (40%× 10,000)= $6,000.
The term 2/10 implies that Jones is entitled to a cash a discount of 2% if it settles its invoice within 10 days following the invoice date. The deadline settlement date to receive the discount would therefore be August 6.
Since the account was settled on September 8 which is later than the deadline date set to qualify for the cash settlement discount, Blue would have to pay $6,000.
Amount to be paid = $6,000
Answer:
1. Which of the excluded items represent ongoing costs of running the business and which are one-time "special" costs?
it depends on the company and the actual transactions, e.g. equity based compensation might be a one time special cost because it occurred only once and is doubtful that it happens again. But if the company regularly rewards its top managers with this type of compensation, then it is an ongoing cost. E.g. Tesla awarded a HHHHUUUUUUGGGGGGGEEEEEEE bonus to Elon Musk (worth hundreds of millions) but it was a one time event. While many companies use equity compensation on a regular basis.
Severance and related employee "rebalancing" costs generally take place when a company fires a lot of people because it is cutting down some division or product line. Hopefully, they should never happen, and if they do, it should be only a one time event.
Fees paid to consultants and interest expenses are ongoing costs that will probably occur in the future.
Losses related to the abandonment of excess facility space and a facility fire should be one time events. It would be really bad for them to keep happening (same as severance and rebalancing costs)
