ssed planning budgets that are based on standards. How are standards developed and are they only useful for companies that manufacture products or do service type industries utilize standards? Please explain and give exa
Q: A corporation will report a temporary, favorable book-tax difference in the year it deducts a net…
A: A net operating loss carryforward means your current year's net operating loss applies to future…
Q: Page 9 & page 12! Goodman Company acquired a truck from Harmes Company in exchange for a machine.…
A: Journal entry is a process of initially recording and classifying business transactions into books…
Q: Hernandez Company expects credit sales for January to be $58,000. Cash sales are expected to be…
A: Total sales = Cash sales + Credit Sales The company will receive cash in February for Credit sales…
Q: from the accounting records for the year ended December 31: Financial Categories Actual Planned…
A: Contribution margin refers to the concept of evaluating the number of extra expenses a company has…
Q: The costs incurred on jobs that are currently in production but are not yet complete would appear in…
A: Work-in-Process is used to refer to such goods which are partially complete. Finished Goods are…
Q: Liang Company began operations in Year 1. During its first two years, the company completed a number…
A: Journals and ledgers are two types of books that are often used to summarize financial and other…
Q: define non assurance services
A: Assurance services are less formal than a financial statements auditor attestation services. Non…
Q: A taxpayer OA. U.S. Circuit Court of Appeals OB.U.S. Tax Court OC. None of these O D.U.S. Court of…
A: Solution: a. Correct answer : (A) U.S. Circuit Court of appeals Explanation: whenever a taxpayer…
Q: The Institute of Management Accountants issues which certification? OA. CFE B. O C. CIA O D. CPA CMA
A: Institute of management accounting is central body in United states of America and provides and…
Q: 3. The operating revenues of the three largest business segments for Time Warner, Inc., for a recent…
A: Contribution margin = Selling price - Variable cost
Q: QUESTION 3 XYZ Ltd manufactures a range of products in a variety of processes. One such product,…
A:
Q: Creasy's Product Cost is $25 per unit, incluing per unit cost of $12.60 for materials (3lbs at $4.20…
A: Direct material budget :— This budget is prepared to estimate the direct material volume to be…
Q: what is the importance of ethical conduct for auditors
A: The moral code that guides employees' behavior in terms of what is right and wrong in terms of…
Q: Marion Co. employed Juan Lopez in 2010. Juan earned $5,000 per month and worked the entire- year.…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Hit-n-Run Food Trucks, Inc., owns and operates food trucks (mobile kitchens) throughout the west…
A: Calculation of labor rate variance ,Time variance and direct labor cost variance are as follows
Q: please can i see the working and how you arrived at the answer
A: I'm solving it manually so that you can understand how it is done. a. In the first part, it is…
Q: Statement of Cost of Goods Manufactured for a Manufacturing Company Cost data for Johnstone…
A: The statement of cost of goods manufactured is prepared to record the cost of goods that are…
Q: 53 kes Video Planet (VP) sells a big screen TV package consisting of a 60-inch plasma TV, a…
A: As per IFRS 115 Revenue recognition standard, Revenue is to be allocated to each performance…
Q: 2. Weightless Inc. produces a Bath and Gym version of its popular electronic scale. The anticipated…
A: Production Budget :— This budget is prepared to estimate the number of units to be produced during…
Q: A company requires two materials ‘X’ and ‘Y’ for executing a new order. The order requires 2000units…
A:
Q: Which of the following indicates that a decision has precedential value for future cases?
A: Temporary book-tax differences arise when there is a difference between the amount of income or…
Q: Determine the amount that pretax income would increase (decrease) in Year 2 as a result of the…
A: Given in the question: Date of Purchase January 1, Year 1 Number of Shares purchased…
Q: Following are unadjusted balances along with year-end adjustments for Quinlan Company. Complete the…
A: The adjustment entries are prepared to adjust the revenue and expenses of the current period. The…
Q: Cox Electric makes electronic components and has estimated the following for a new design of one of…
A: Answer:- Profit model:- A profit model will take into account all expenses and income related to a…
Q: ways use the same checking account for business transactions and for the owner's personal…
A: Checking accounts refers to the form of a highly liquid form of transactional bank account that…
Q: H1
A: Non Controlling Interest : It is the percentage of shares which is hold by other shareholder, for…
Q: [The following information applies to the questions displayed below.] XYZ Corporation has a…
A: A portion of an employee's income is referred to as deferred compensation when it is put away for…
Q: On January 1, Ivanhoe Corporation had 91,000 shares of no-par common stock issued and outstanding.…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: A machine has a first cost of P88,155.25 and has an expected salvage value after 10 years…
A: Declining balance method : Under this method , depreciation is charged a fixed percentage on the…
Q: Define and explain the following. Provide two references A: Audit data analytics B: Audit data…
A: Data analytics has been for a long in a variety of forms, but businesses are now finding more…
Q: The following balance sheet has been prepared by the accountant for Limestone Company as of June 3,…
A: Preparation of Statement of Financial Affairs for limestone company are as follows
Q: Here is the condensed 2021 balance sheet for Skye Computer Company (in thousands of dollars):…
A: WACC is the Weighted Average Cost of Capital. It means the average tax cost of capital from all the…
Q: Required Write a memo explaining why one company's P/E ratio may be higher than another company's…
A: Introduction: The price/earnings ratio reveals investors how much a company is worth. The P/E ratio…
Q: In the Concepts in Action, the speaker mentioned, "A stock is fundamentally more difficult to value…
A: Common stock is a type of security that represents ownership in a corporation. Common shareholder is…
Q: What is the definition of assurance and non assurance services
A: Assurance services are much less formal than financial statement attestation services. Non-assurance…
Q: Management accounting- mergers and aquisitions Mergers are often categorised as horizontal, vertical…
A: A horizontal merger is a merger between two companies that operate in the same industry and at…
Q: Produces a Martha Manufacturing single product that for $52. Variable costs per unit equal $36. The…
A: Management uses price sensitivity to make future decisions. Price sensitivity gives management an…
Q: Assume that company makes only two products: Product A and Product B. The company’s activity-based…
A: Solution: Total nos of setup hours = Total nos of setup of product A * Nos of setup hours per setup…
Q: Required a. Record the transactions in a horizontal statements model like the following one. In the…
A: "As you have posted more than 3 questions, I'm only solving the first 3 questions. Please either…
Q: Solve for the missing information designated by "?" in the following table. (Use 365 days in a year.…
A: Calculation of missing figure are as follows
Q: Which of these is not a correct citation to the Internal Revenue Code? A. All of these are correct…
A: Internal Revenue code is also written as IRC and it is the tax law which is used by the federal…
Q: LO 5 Exercise 9-10A Calculating payroll Mega Mart has two employees in 2010. Marsha earns $4,200 per…
A:
Q: The first campaign was a gofundme campaign where Mr. Bacon sought contributions to help him buy…
A: Crowd funding is the funding method through which a person gets the money from the people through…
Q: Using the table below, complete a Vertical Analysis. Round answers to 1 decimal place. Paragraph V…
A: VERTICAL ANALYSIS OF BALANCE SHEET Vertical Analysis of a Balance sheet provides the Percentage…
Q: I b) Electroz Ltd has the following data concerning a model electric car it manufactures:< Variable…
A: Cost Plus Pricing Method :— It is a pricing method in which target price is calculated by adding…
Q: The controller of Crane Production has collected the following monthly cost data for analyzing the…
A: Usually, businesses aim to comprehend the cost framework of the items they produce. As a result,…
Q: Elitz and Van Aken, CPAs, offer three types of services to clients: auditing, tax, and small…
A: BUDGETING A Budget is an estimation of revenue & Expenses over a Specific Period of Time for…
Q: LO 1 Exercise 12-2A Use the indirect method to determine cash flows from operating activities Mendez…
A: The cash flow statement is prepared at the end of an accounting period to evaluate the cash position…
Q: LSB Company has the following income statement: Revenues $100,000 Variable Costs 40,000 Contribution…
A: Contribution margin: Difference between the sales and the variable costs is called contribution…
Q: Rizio Co. purchases a machine for $14,800, terms 1/10, n/60, FOB shipping point. Rizio paid within…
A: Net Purchase :— It is purchase price less purchase return less purchase discount. Expenditure…
In the previous week, we have discussed planning budgets that are based on standards. How are standards developed and are they only useful for companies that manufacture products or do service type industries utilize standards? Please explain and give examples!
Step by step
Solved in 2 steps
- Suppose that the controller of your companys largest factory is a particularly optimistic individual. If you were in charge of developing the master budget, how, if at all, would you be influenced by this knowledge?Which approach is most likely to result in employee buy-in to the budget? A. top-down approach B. bottom-up approach C. total participation approach D. basing the budget on the prior yearWhich of the following is true in a bottom-up budgeting approach? Every expense needs to be justified. Supervisors tell departments their budget amount and the departments are free to work within those amounts. Departments budget their needs however they see fit. Departments determine their needs and relate them to the overall goals.
- Norton Company, a manufacturer of infant furniture and carriages, is in the initial stages of preparing the annual budget for the coming year. Scott Ford has recently joined Nortons accounting staff and is interested in learning as much as possible about the companys budgeting process. During a recent lunch with Marge Atkins, sales manager, and Pete Granger, production manager, Ford initiated the following conversation. FORD: Since Im new around here and am going to be involved with the preparation of the annual budget, Id be interested in learning how the two of you estimate sales and production numbers. ATKINS: We start out very methodically by looking at recent history, discussing what we know about current accounts, potential customers, and the general state of consumer spending. Then, we add that usual dose of intuition to come up with the best forecast we can. GRANGER: I usually take the sales projections as the basis for my projections. Of course, we have to make an estimate of what this years closing inventories will be, which is sometimes difficult. FORD: Why does that present a problem? There must have been an estimate of closing inventories in the budget for the current year. GRANGER: Those numbers arent always reliable since Marge makes some adjustments to the sales numbers before passing them on to me. FORD: What kind of adjustments? ATKINS: Well, we dont want to fall short of the sales projections so we generally give ourselves a little breathing room by lowering the initial sales projection anywhere from 5 to 10 percent. GRANGER: So, you can see why this years budget is not a very reliable starting point. We always have to adjust the projected production rates as the year progresses, and of course, this changes the ending inventory estimates. By the way, we make similar adjustments to expenses by adding at least 10 percent to the estimates; I think everyone around here does the same thing. Required: 1. Marge Atkins and Pete Granger have described the use of budgetary slack. a. Explain why Atkins and Granger behave in this manner, and describe the benefits they expect to realize from the use of budgetary slack. b. Explain how the use of budgetary slack can adversely affect Atkins and Granger. 2. As a management accountant, Scott Ford believes that the behavior described by Marge Atkins and Pete Granger may be unethical and that he may have an obligation not to support this behavior. By citing the specific standards of competence, confidentiality, integrity, and/or credibility from the Statement of Ethical Professional Practice (in Chapter 1), explain why the use of budgetary slack may be unethical. (CMA adapted)The management of Hess, Inc., is developing a flexible budget for the upcoming year. It was not pleased with the small amount of net income the budget showed at all sales levels and Is contemplating using a less expensive material. This action reduces direct material cost by $1 per unit. What would be the effects on financial statements and a flexible budget if management takes this approach? Are there other factors that need to be considered?Friendly Bank is attempting to determine the cost behavior of its small business lending operations. One of the major activities is the application activity. Two possible activity drivers have been mentioned: application hours (number of hours to complete the application) and number of applications. The bank controller has accumulated the following data for the setup activity: Required: 1. Estimate a regression equation with application hours as the activity driver and the only independent variable. If the bank forecasts 2,600 application hours for the next month, what will be the budgeted application cost? 2. Estimate a regression equation with number of applications as the activity driver and the only independent variable. If the bank forecasts 80 applications for the next month, what will be the budgeted application cost? 3. Which of the two regression equations do you think does a better job of predicting application costs? Explain. 4. Run a multiple regression to determine the cost equation using both activity drivers. What are the budgeted application costs for 2,600 application hours and 80 applications?
- Listed below are the budgeted factory overhead costs for 2011 for Moss Industries at a projected level of 2,000 units: Required: Prepare flexible budgets for factory overhead at the 1,000, 2,000, and 4,000 unit levels. (Hint: You must first decide which of the listed costs should be considered variable and which should be fixed.)Why might a rolling budget require more management participation than an annual budget?Which of the following statements is not correct? A. The sales budget is computed by multiplying estimated sales by the sales price. B. The production budget begins with the sales estimated for each period. C. The direct materials budget begins with the sales estimated for each period. D. The sales budget is typically the first budget prepared.
- Budgeted income statement and supporting budgets The budget director of Birding Homes Feeders Inc., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for January: Estimated sales for January: Estimated inventories at January 1: Desired inventories at January 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for January: Estimated operating expenses for January: Estimated other revenue and expense for January: Estimated tax rate: 25% Instructions Prepare a sales budget for January. Prepare a production budget for January. Prepare a direct materials purchases budget for January. Prepare a direct labor cost budget for January. Prepare a factory overhead cost budget for January. Prepare a cost of goods sold budget for January. Work in process at the beginning of January is estimated to be 9,000, and work in process at the end of January is estimated to be 10,500. Prepare a selling and administrative expenses budget for January. Prepare a budgeted income statement for January.Budgeted income statement and supporting budgets The budget director of Gold Medal Athletic Co., with the assistance of the controller, treasurer, production manager, and sales manager, has gathered the following data for use in developing the budgeted income statement for March: Estimated sales for March: Estimated inventories at March 1: Desired inventories at March 31: Direct materials used in production: Anticipated cost of purchases and beginning and ending inventory of direct materials: Direct labor requirements: Estimated factory overhead costs for March: Estimated operating expenses for March: Estimated other revenue and expense for March: Estimated tax rate: 30% Instructions Prepare a sales budget for March. Prepare a production budget for March. Prepare a direct materials purchases budget for March. Prepare a direct labor cost budget for March. Prepare a factory overhead cost budget for March. Prepare a cost of goods sold budget for March. Work in process at the beginning of March is estimated to be 15,300, and work in process at the end of March is desired to be 14,800. Prepare a selling and administrative expenses budget for March. Prepare a budgeted income statement for March.A company has prepared the operating budget and the cash budget. It is now preparing the budgeted balance sheet. Identify the document that contains each of these balances. A. cash B. accounts receivable C. finished goods inventory D. accounts payable E. equipment purchases