17. The main difference between the SCI of a service company and of a merchandising company lies on how they generate their revenue. *
Q: 1. How does the cost accounting function assist in the management of the business? 5. How do the…
A: Cost Accounting: It is a part of managerial accounting and total cost of production of a business…
Q: What is the differences between financial statements of a manufacturing and a merchandising…
A: Financial statements: Financial statements are condensed summary of transactions communicated in the…
Q: 2. How would components of Revenues and Expenses differ between a merchandise company versus a…
A: a. Merchandise Company - This company does buy and sells of inventory from suppliers to customers.…
Q: 1. "The steps in the accounting cycle for a merchandising company are different from the accounting…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want a…
Q: Which of the following is not a key difference between front office and back office? Select one: i.…
A: Front office and back office are two integral parts of any firm. Front office is the one which…
Q: What are the key differences in performing adjusting and closing for a service company, versus a…
A: The key difference: Since service companies will not have inventory, so there no adjustment required…
Q: 43) The ability of an organization to produce goods or services that have some wuniqueness in their…
A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…
Q: The income statement of a merchandising company includesa major type of cost that does not appear in…
A:
Q: QUESTION 17 A business segment that is responsible for all of its revenues and expenses is known as:…
A: The excess of revenues over expenses is defined as the net profits of the organization.
Q: What is the distinctionbetween retail and wholesale merchandising companies?
A: The Distinction between Merchandising and Manufacturing Companies are given below as,
Q: How does reporting information for a merchandising company differ from financial reporting for a…
A: Merchandising Company: A merchandising company is a type of company that engages in the purchase…
Q: 1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that…
A: Solution:- 1) Explanation of one difference between manufacturing and merchandising business as…
Q: (a) How are the components of revenues and expenses different for a merchandising company? (b)…
A: There are generally two types of business organisations-merchandising businesses which sale goods…
Q: How would a business plan for a small manufacturing firm differ from one for a small retailing firm?…
A: A business plan is a document in writing that elaborates how a start-up company derives its…
Q: 1. Customer profitability analysis allows managers to do which of the following? a. Identify the…
A: Answer: As per Q/A guidelines, first question has been answered. Please repost remaining question.…
Q: The income statement of a service-sector firm reports: both period and inventoriable costs a O…
A: The income statement which deals with inventory includes both period cost and product cost. but…
Q: b.Cost control and reduction
A: Answer 20 Select which of the following requires a separate measurement of cost. D:- Volume Answer…
Q: 1, How can accounting consultants or auditors minimize the cost of doing business? How is this…
A: solution : dear student as per bartleby guideline we are required to solve the first question only…
Q: 28. The process of selling services or products to another business, which typically then sells to…
A: Note: “Since you have asked multiple question, we will solve the first question for you. If you want…
Q: Mr. Ahmed is responsible for appropriate product design, pricing policy, delivery, and services to…
A: Mr. Ahmed is responsible for appropriate product design, pricing policy, delivery, and services to…
Q: Companies benefit greatly from the use of a standard cost system, and the statement
A: This question deals with the use of a standard cost system, and the statemen
Q: Why is the normal operating cycle for a merchandising company likely to be longer than for a service…
A: A merchandising company only deals with purchase and sales of products. It buys products from other…
Q: Requirement 1: Please describe the basic objectives in the use of standard costs. Requirement 2:…
A: Cost accounting is the accounting which helps in calculation of the cost of the product or the…
Q: What challenges does Blu Dot face in selling consumer products (as opposed to business products)?
A: Consumer products, often called as final goods, are objects bought for personal use by individuals…
Q: Which of the following statements about the value chain is correct?a. The two phases of the…
A: Given: The value chain analysis of a company is the one which will be helpful for identifying steps…
Q: The cost centre investment centre is a business sector that is responsible for all of its income and…
A: The excess of revenues over expenses is defined as the net profits of the organization.
Q: Understand the components of a merchandising company’s income statement.
A: Preparations of income statements help the merchandise company to know how much gross profit or net…
Q: 2. Provide an example of a manufacturing-, merchandising-, and service-sector companies 3.
A: Companies in the manufacturing sector purchase raw materials and components and then turn them into…
Q: How can accounting consultants or auditors minimize the cost of doing business? How is this…
A: SOLUTIONS- ACCOUNTING CONSULTANTS ADVISES BUSINESSES ON FINANCIAL DECISION AND THEIR ACCOUNTING…
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- The systematic examination of the relationships among selling prices, volume of sales and production, costs, and profits is termed a. cost-volume-profit analysis b. contribution margin analysis c. budgetary analysis d. gross profit analysis In a profit center, the manager has responsibility and authority for making decisions that affect a. assets b. investments c. long-term liabilities d. costs1. Do you agree with the intern’s decision to use an absorption format for her segmented income statement? 2. Based on a review of the intern’s segmented income statement. a. How much of the company’s common fixed expenses did she allocate to the Commercial and Residential segments? b. Which of the following three allocation bases did she most likely used to allocate common fixed expenses to the Commercial and Residential segments: (a) sales, (b) cost of goods sold, or (c) gross margin?APPLY THE CONCEPTS: Target income (sales revenue) Another useful method for figuring out the type of performance your company will need to reach a target income is by using sales revenue. Rather than using the number of units, this method uses total sales revenue. In companies for which the total set of goods produced and sold is more varied, this would be the preferred method, as opposed to a business in which only one product is sold. Assume a company has pricing and cost information as follows: Price and Cost Information Amount Selling Price per Unit $30 Variable Cost per Unit $15 Total Fixed Cost $15,000 For the upcoming period, the company wishes to generate operating income of $40,000. Given the cost and pricing structure for the company’s product, how much sales revenue must it generate to attain its target income? Step 1: Calculate the contribution margin ratio: The contribution margin ratio is the contribution margin in proportion to the selling price on a…
- Management accounting guidelines. For each of the following items, identify which of the management accounting guidelines applies: cost–benefit approach, behavioral and technical considerations, or different costs for different purposes. Analyzing whether to produce a component needed for the end product or to outsource it. Deciding whether to compensate the sales force by straight commission or by salary. Adding the cost of store operations to merchandise cost when deciding on product pricing, but only including the cost of freight and the merchandise itself when calculating cost of goods sold on the income statement. Considering the desirability of purchasing new technology. Weighing the cost of increased inspection against the costs associated with customer returns of defective goods. Deciding whether to buy or lease an existing production facility to increase capacity. Estimating the loss of future business resulting from bad publicity related to an environmental disaster caused…____ 1.Which of the following is a responsibility center that incurs expenses, generates revenues, and is responsible for generating a return on assets? a. Cost center b. Revenue center c. Profit center d. Investment center ____ 2.Which one of the following is the most useful measure for evaluating a manager's performance in controlling revenues and costs in a profit center? a. Contribution margin b. Contribution net income c. Contribution gross profit d. Controllable margin ____ 3.Hanover Corporation desires to earn target net income of $42,000. The selling price per unit is $18, unit variable cost is $5.60, and total fixed costs are $123,912. How many units must the company sell to earn its target net income? a. 13,380 b. 9,993 c. 3,387 d. 9,217 ____ 4.Remark…How much is the net operating income contributed to the company by Department A and B? Using the data above, what is the segment margin of Department A and B?
- Which of the following represents the components of the income statement for a service business? Select one: a. Service Revenue – Operating Expenses = operating income b. Sales Revenue – Cost of Goods Manufactured = gross profit c. Sales Revenue – Cost of Goods Sold = gross profit d. Service Revenue – Cost of Goods Purchased = gross profitFrom the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:a. Advertising costs are usually viewed as (period, product) costs.b. Feedback is often used to (improve, direct) operations.c. Payments of cash or the commitment to pay cash in the future for the purpose of generating revenues are (costs, expenses).d. A product, a sales territory, a department, or an activity to which costs are traced is called a (direct cost, cost object).e. The balance sheet of a manufacturer would include an account for (cost of goods sold, work in process inventory).f. Factory overhead costs combined with direct labor costs are called (prime, conversion) costs.g. The implementation of automatic, robotic factory equipment normally (increases, decreases) the direct labor component of product costs.The Golden Fence Company and Stone Wall Corporation are competitors in manufacturing walls and fences. You are interested in comparing the two firms' profitability. Their income statements and other information are presented below. LOADING... (Click the icon to view the comparative income statements.) Golden Fence is the larger company based on sales and total assets, so you perform the following steps to compare and analyze the companies. Read the requirements LOADING... . Requirement a. Prepare common-size income statements. Comment on differences in the relative size of each line item. (Round percentages to the nearest tenth of a percent, X.X%.) Percent of Sales Golden Fence Stone Wall Golden Fence Stone Wall (amounts in millions) Company Corporation Company Corporation Sales $987,236 $67,450 % % Cost of goods sold 678,626 43,370 % % Gross profit 308,610 24,080…
- Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performanceThe manager of the West store has concerns relating to the store’s financial performance and has asked for help analyzing transfer costs. After calculating the operating income in dollars and the operating income percent, analyze the following financial information to determine costs that may need further investigation. It may be helpful to perform a vertical analysis (i.e., perform a vertical analysis). warehouse west store sales $18,920 $43,860 cost of goods sold 9,082 21,053 gross profit $9,838 $22,807 selling expenses 860 2,752 wages expense 4,730 15,351 costs allocated from corporate 2,838 4,386 Total expenses $8,428 $22,489 operating income/(loss) $ ? ? Operating Income/(loss) % ? ?In few words give me a substantive comment on this post: Cost-Volume-Profit (CVP) analysis is a financial tool used by businesses to analyze the relationship between sales volume, costs, and profits. It provides information as to how changes in these factors have an impact on a company's financial performance. The basic components of CVP analysis include sales revenue, variable costs, fixed cost, contribution margin, break-even point, and profit planning. Determining a company's break-even point is important. It offers multiple analyses and helps with many valuable decision-making opportunities. The break-even analysis allows a company to understand the minimum level of sales required to cover all its costs. Knowing the break-even point enables better decision-making in various areas, such as setting sales targets, pricing products, determining production levels, and evaluating investment opportunities. Identifying the break-even point helps a business understand the level of sales…
