Absorption costing is a managerial accounting method for capturing all costs associated with the manufacture of a particular product. Absorbed cost, also known as absorption cost, is a Contribution Margin accounting method that includes both the variable and fixed overhead costs of producing a particular product. Knowing the full cost of producing each unit enables manufacturers to price their products.
Contribution Margin per unit = Contribution Margin / Units Sold
Contribution Margin per unit = $1,424,000 / 8,900
Contribution Margin per unit = $160
Breakeven Point in units = Fixed Costs / Contribution Margin per unit
Breakeven Point in units = $1,360,000 / $160
Breakeven Point in units = 8,500
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Answer:
The answer is: Signal will not succeed on their claims.
Explanation:
In order for acceptance of a product to be valid, the buyer must accept the products after inspection and give formal acceptance, or fail to reject the products after a reasonable time for inspection. Only after the products are accepted does the buyer lose any rights to revoke acceptance.
In this case, Turner accepted the TVs based on Signal's promise that they were in perfect condition, but after inspection, Turner can revoke that acceptance do to damages on the products.
Both companies agreed that the payment should be done upon delivery, but there was no specific payment method. Turner tried to pay with a check that Signal rejected. Signal cannot demand a cash payment because a check is a valid payment.
Answer:
WACC = 0.079 and firm value = 12,658.23.
Explanation:
WACC is equal to
Where debt cost is 0.05, debt weight is 0.3, tax rate is 0.4, equity cost is 0.1 and equity weight is 1-0.3 = 0.7
So, WACC = 0.05*0.3*0.6 + 0.1*0.7 = 0.079 or 7.9%.
The value of the fir is calculated FCF/WACC, in this case 1,000/0.079 = 12,658.23.
After each month, adjust the accounts. Cruella's adjusting entry at the end of February should include a debit to rent expense for $100.
<h3>What is an adjusting entry?</h3>
Adjusting entries refer to a set of journal entries recorded at the end of the accounting period to have updated and accurate balances of all the accounts. The main purpose of adjusting entries is to communicate an accurate picture of the company’s finances. The management can have a proper look into the financial statements knowing that Everything that occurred during the month is reported, even if the financial part of the transaction would have been warranted to have occurred at a later stage.
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Answer:
E) Open-book management
Explanation:
Open-book management is a management approach, proposed by John Case in 1993. Case advocated for a management system where employees could have access to complete information about the company they work for.
The whole idea behind employees knowing everything is that they will understand how the company is doing: Is it making a profit? Its sales are increasing or decreasing? According to Case this should motivate employees and increase their efficiency.
This management approach leads to a better employer - employee relationship, built upon mutual trust.