Ma3. What are the benefits and limitations of ABC?   Please answer according to the structure below:   Intro: Identity what are Activity-based costing ?   Body: Direct answer   Conclude: up to you.

Q: 1)The owner’s capital is P200,000. The total liability is P80,000 of which P60,000 is current…

A: Introduction:- Working capital is the difference between a company's current assets and current…

Q: Mercado Electronics Company (Merelco) sells electronic gadgets and small appliances to selected…

A: Auditing is done to make sure that the financial statements prepared by the company give a true and…

Q: Pronghorn Company is considering two capital investment proposals. Relevant data on each project are…

A: (a) Cash payback period for each project:                                           Project Red…

Q: Although the solution to question number 8 is incorrect, it is not explained why $1700 is the…

A: This is the follow-up question A net cash flow of the cash from the foreign exchange of the currency…

Q: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a)…

A: In accounting we value inventory using different methods like FIFO, LIFO etc. FIFO is the first in…

Q: Child Support Payment from Kevin Hamblin $12,000 Alimony Payment from Kevin Hamblin $16,000 Gift…

A: Individual taxpayers should compute their taxation based on the approved tax formula. It starts with…

Q: Assume that Adam and Eve agreed to the following: 1. Each of them would have a salary of P5,000 per…

A: The partnership comes into existence when two or more persons agree to do the business and further…

Q: n January 1, 2021, Piper Corp. purchased 25% of the voting common stock of Betz, Inc. and…

A: Introduction:- Computation of increase in Piper's deferred income tax liability for this temporary…

Q: Which of the following describes the operating activities section of the statement of cash flows? It…

A: The statement of cash flows is divided into three categories: Operating activities: related to core…

Q: On July 15, 2024, Cottonwood Industries sold a patent and equipment to Roquemore Corporation for…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: You were engaged to audit the financial statements of JBC Company for the year 2022. The following…

A: Retained earnings are the accumulated earnings of the company, and the ending balance of retained…

Q: Ma1. 1. Kay terminated employment with Atria Corp after completing four years of service. Atria…

A: It is the retirement plan in which employees are allowed to make elective salary deferrals while…

Q: For every P500 worth of services rendered to customers, Beauty has to pay P300 salary expense, and…

A: According to accrual concept of accounting, expense and revenues are recorded in books of account…

Q: Beta Company's budgeted prices for direct materials, direct manufacturing labor, and direct…

A: The static budget is prepared on the basis of estimated units of production. The actual budget…

Q: Corporations taxed as S corporations offer the same legal protection to owners as corporations taxed…

A: Introduction:- Discussion of "Corporations taxed as S corporations offer the same legal protection…

Q: Below are departmental income statements for a guitar manufacturer. The company classifies…

A: The direct costs are the costs that are related to the production directly such as direct materials,…

Q: (c) Annual rate of return. (Round answer to 2 decimal places, e.g. 15.25%) Annual rate of return %

A: One of the traditional techniques that is used for capital budgeting is the annual/ accounting rate…

Q: Enid paid the gross payroll of P15,000. The deductions are: withholding tax, P1,000 and SSS, P500.…

A: Employers pay the net payroll amount to the employees that are calculated by deducting withholding…

Q: Where does the 12 come from in the second step?

A: Sales price = Cost per unit + Profit per unit  Cost = Direct material + Direct labor + Manufacturing…

Q: uality Service’s revenue on account is P60,000 and the cash basis is P90,000. The cost of services…

A: Capital is increased by the owner's investment made during the year, the net profit earned during…

Q: Jokoy Company completed the following transactions and events involving its delivery trucks.…

A: Depreciation is defined as the reduction of the recorded cost of a fixed asset in a systematic…

Q: Allowance for doubtful accounts has a credit balance of $9000 at the end of the year, before…

A: Net sales = Sales - Sales returns and allowances Bad debts expense = Net sales*2%

Q: Advise the president as to whether the estimate of ¼ of 1% of credit sales appears reasonabl

A: Credit sales are recorded by debiting (increasing) accounts receivable account. The bad debts is a…

Q: A company's relevant range of production is 10,000 to 15,000 units. When it produces and sells…

A: INDIRECT MANUFACTURING OVERHEAD COST Indirect manufacturing costs are production costs that cannot…

Q: Cash outflows generated by capital investments include all of the following except: a) Initial…

A: Capital investment is a cash outflow for the business that comes along with other cash outflows…

Q: 1. Aries Company provided the following information: 800,000 Balance per book, March 31 Cash…

A: The bank reconciliation statement is prepared to equate the balances of cash book and passbook with…

Q: Van Frank Telecommunications has a patent on a cellular transmission process. The company has…

A: Amortization: The accounting process of spreading an intangible asset's cost over the course of its…

Q: July 1 Purchased $22,000 of merchandise on credit from Hector Company, terms n/15. July 4 Sold…

A: The special journals are prepared to record the specific transactions. The purchase journal is…

Q: Which of the following occurs when a corporation's board of directors declares a 10% stock dividend?…

A: Stock dividends are given to the existing shareholders at a current market price. The dividend is…

Q: During the current year, merchandise is sold for $48000 cash and for $336000 on account. The cost of…

A: Gross profit is the amount of profit earned by the entity after deducting the cost of goods sold…

Q: Edwin and Darren have decided to form a partnership. Edwin contributes $82,000 cash and merchandise…

A: Lets understand the basics. Partnership is an agreement between two or more person who works…

Q: Variable Costs, Contribution Margin, Contribution Margin Ratio Super-Tees Company plans to sell…

A: ANSWER Variable product cost per unit=Direct material cost per unit+ Direct labor cost per unit+…

Q: Trading debt investments include

A: The correct answer is: (B) debt securities that the investor plans to sell in the very near future.…

Q: Assume the following (1) selling price per unit = $25, (2) variable expense per unit = $13, (3) unit…

A: Contribution margin: The difference between the sales and the variable costs is called contribution…

Q: A major benefit of a decentralized organization is that:

A: Decentralization means top-level management delegated authority and responsibilities of…

Q: GR Company had outstanding 2,000 shares of P100 par value 8% cumulative preference share and 30,000…

A: Shares are defined as the company’s holdings that are provided to the investors or any person who…

Q: Assume the following: • The variable portion of the predetermined overhead rate is $1.50 per direct…

A: Variable overhead efficiency variance :Variable overhead efficiency variance is the difference…

Q: e accrual-based oportion of debt and assets. income statement and the ca

A: Statement of cashflow shows the inflow and outflow of cash transactions under operating activity ,…

Q: Lauren's factory was destroyed by a fire on March 3, 2022. Her basis in the factory was $100,000. On…

A: Involuntary conversion - refers to conversion done forcefully. This happens when the asset is…

Q: Q5-32 The following T account balances are taken from Forester Corp. Manufacturing Overhead 395,000…

A: Journal entry is the primary step to record the transaction in the books of accounts. Overapplied…

Q: The World Bank forecasts growth of world trade to be 7.00 %, up from 20.10% in 2014. This change has…

A: Bank reconciliation is the statement which is prepared to reconcile the differences between the…

Q: U.S. corporations are eligible for a foreign tax credit for withholding taxes imposed on dividends…

A: Introduction:- Discussion of issue" U.S. corporations are eligible for a foreign tax credit for…

Q: Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed…

A: Operating cash flow= Operating income+ Depreciation -Taxes+Change in working capital

Q: Cash and accounts receivable for Adams Company are as follows: Current Prior Year Year Cash Accounts…

A: Horizontal analysis is the statement which shows the dollar increase or decrease in the figures…

Q: During the current year, merchandise is sold for $141,000 cash and $615,200 on account. The cost of…

A: COST OF GOODS SOLD  Cost of goods sold is the carrying value of goods sold during a particular…

Q: On January 1, 2025, a company acquired equipment for $190,000. Residual value was estimated to be…

A: Lets understand the basics. Depreciation is reduction in value of asset due to wear and tear,…

Q: nsidering an investment in equipment that would cost $50,000 and provide annual cash inflows of…

A: When comes the decisions regarding investment in a project there many criteria that are used in…

Q: It was agreed among the partners Goodwill of the firm to be valued at 72,000 3,000 5,700 17.5% 12.5%…

A: Dr.                                                                         revaluation account…

Q: Pertinent information for two alternatives A and B is shown below. If i=10% / year and the effective…

A: The process of debiting the asset's cost and crediting a depreciation account is known as…

Q: Exercise 7-5 (Algo) Controlling accounts and subsidiary ledgers LO C2 Following is information from…

A: A general journal is defined as a book in which the raw data pertaining to the transactions or…