Discussion 3
Les Pulaski, the supervisor of a new division of Innovation Corporation, received annual bonus based upon the number of sales that exceeds the breakeven point of the company (Crosson & Needles, 2014). She was given bonus for the mentioned year as well. But, a review of the sales for that year confirmed that 7,500 units were returned by the customer to the company. These returned were included when calculating her bonus. Researching further into this situation, she found out that the returned products were labeled as overhead expense and the cost for the 7,500 units were charged to the overhead account (Crosson & Needles, 2014). Due to this accounting error, it appeared that the sales of the product exceeded the breakeven point
A teenage boy discovered the boy’s body on 1 January 1998, at the Blue Rock Dam. A small sleeping bag with a crowbar tied to it and a plastic bag containing baby’s clothes, a bib, elastic-sided boots, a baby’s bottle
Management does not have to deal with these expenses because they have already occurred in the past, and must be paid whether the project is started or not. Overhead expenses would be considered as a significant incremental cash flow because any extra capital and labor required will be counted to help the company keep up with increasing demand (80% of the market). However, any overhead expenses that did not change due to the acceptation of the project will not be included. About 90 each year was actually included in the overhead expenses. Erosion of the Jell-O contribution margin would be considered an incremental cash flow and must be included in the cost analysis. It was anticipated by General foods that if the project was undertaken, 80% of its sales would arise from growth of the dessert market share or powder segment and the other 20% would come from the erosion. If the Super Project was not accepted, the sales
JJ has complained on behalf of the performance measurement system because currently his bonus is based off of production cost being less than 43 percent of sales. JJ believes that the production facility is operating as efficiently as, if not better, than it has before the expansion. Due to this performance measurement JJ’s ownership when from 25 percent to 8 percent and he is losing bonuses and annual dividends.
Management should note that the level of activity was above what had been planned for the month. This led to an expected increase in profits of $1,100. However, the individual items on the report should not receive much management attention. The favorable variance for revenue and the unfavorable variances for expenses are entirely caused by the increase in activity.
What principles with respect to women battering and self-defense have been established in Lavallee's case?
In our second assumption, instead of using the cost of goods per cases in 1986, we try to use the percentage it counts in the total expenses which is 50.4% and to find the sales needed to break-even. The detail of the calculation is shown in the answer for questions d. The result is that 95,635, a little bit higher than the estimated sales of 90,000.
According to Ken Gurnick of MLB.com, Dodgers outfielder Yasiel Puig’s one-game suspension has been rescinded, after being appealed. While Puig is no longer being forced to miss a game, the Players’ Association and Major League Baseball have agreed that the outfielder will make a charitable donation instead.
On his last night before he had to go back to the Citadel Military school in South Carolina, following the Thanksgiving vacation, Harry De La Roche came back home from a night of drinking with some friends and found himself contemplating in his bed whether he should go back to school like his father ordered him to do and continue the harassment he had endured that semester from his classmates or to stop his only obstacle that was in his way from ever going back to that school. He took his father’s .22 caliber pistol and proceeded into his parent’s bedroom. He stood over their bed for 15 minutes with the gun in his hand thinking if he should continue with what he was about to do. Then the next minute, he shot both his father and mother. He continued down the hallway towards his Brother Ronnie’s room and as Ronnie was getting out of bed, still in shock with what he just heard, Harry shot him. He then went to see his younger brother Eric and he shot him twice while he was getting up. Harry then continued back to his room and sat on his bed for a few minutes and then he heard heavy breathing coming from Eric’s room. Harry went back to the room and heard his brother mumbling something. Harry then covered Eric’s eyes with his hands while he got a towel and covered Eric’s face with it. He told him it was a dream and to go back to sleep. Eric
In this table, it reflects the changes in fixed plant overhead from $420,000 to $378,000. The company still has the fixed selling and administrative expense per quarter of $118,000. The new company fixed overhead is now at $496,000 from the past $538,000 ($42,000) change from past to
If, at year end, 2 months have elapsed, what adjusting entry do you record? 2,000 A. Prepaid Legal Expense Legal Expense 2,000 2,000 B. Legal Expense Prepaid Legal Expense 2,000 Legal Expense 3,000 C. Prepaid Legal Expense 3,000 12,000 D. Prepaid Legal Expense Cash 12,000 [10]BASIC BANK10 - COAE 010 On September 1, your firm incurs a routine $82 expense, mistakenly recording it as follows: Office Expense Accounts Payable 28 28
On March 10, 1977 Roman Polanski was charged for stationary rape of 13 year old Samantha Geimer in addition to rape Polanski was charged with perversion, sodomy, lewd and lascivious act upon a child under fourteen, and furnishing a controlled substance to a minor.
For example the extra charge for maintenance accumulated from last year and for this year should be equally divided and not charged to the first quarter only. Similarly, cost of relocating the Southern Paper Sioux Springs office that has been charged to the first quarter, had been the expenditure incurred last year. It should not have been included in the first quarter. No doubt these are good accounting practices but nevertheless reverting the charges to their respective results would not compromise GAAP practice. Unrealized income would be better off transferred to the next or the last quarter as the income received would not materialize until at the end of the year. Including the dividend from the company's Brazilian unit would not help increase profitability at the end of the year unless the company is assured of its profitability. As of now it needs to balance its accounts before it can estimate correct profit level at the end of the year. With regard to the obsolete inventories, there is no alternative course of action but to write-off from this
b. The inventory write down recorded, as an expense by the company is $4.4 million. It is measured at lower of cost and net realizable value. Cost is measured by weighted average using standard cost method or
The $320,000, on the other hand, is a fixed cost associated with the proposed addition.
Sales centre A, they had achieved great success over the last year and consistently outsells other sales centres. In fact, due to the large number of accounts managed by our sales team and larger staff, Sales centre A is expected to sell as much volume as the other two sales centres put together. That means, the expense budget for Sales centre A must be more than other, at least twice time then the other centre. Because, they need a lot of money to pay for their cost, such as Wages, telephone, office supplies, and commission. That seems not fair for Sale centre A.