There are different methods utilized in making capital budgeting decisions. The one method that is the simplest and stands out among others is called the payback method.   What makes this method better than the others? What makes this method inferior to the others?

Q: a. Determine the firm’s fixed costs that are expected next year. b. Calculate the firm’s break-even…

A: - Calculation of Contribution Margin : a) Sales per unit : P 200 b) Sales in unit : ( Total sales /…

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A: Activity-based costing, or ABC for short, is a way of allocating overhead and indirect expenses to…

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A: Taxes - Taxes are compulsory payments made by a government organization, whether local, regional, or…

Q: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

A: Obligations for which the amount of the future sacrifice is so uncertain that it cannot be measured…

Q: Which of the following does NOT apply to an LLC?

A: Any limited liability company (LLC) is a type of corporate structure that shields its owners from…

Q: The annual maintenance cost of a machine shop is P69, 994. If the cost of making a forging is P56…

A: The break even sales are the sales where business earns no profit no loss during the period. The…

Q: Which of the following taxpayers may report the sale of their property as an installment sale?…

A: An arrangement in which someone sells something and receives a portion of the cost immediately,…

Q: Perrin Company designs industrial prototypes for outside companies. Budgeted overhead for the year…

A: Overhead cost is the cost of the company company that shows the indirect cost involved in the…

Q: What are their total product costs? A) $143,137.50 B) $151,500.00 C) $209,737.50 D) $320,737.50

A: Total product cost will be the cost which is directly related to that cost. All the period cost or…

Q: In December, Sara’s Sodas produced 4.2 million liters of the beverage. Manufacturing overhead was…

A: Production = 4,200,000 liters Manufacturing overhead = $1,410,000 Total manufacturing cost = $0.42…

Q: Sellers allow customers to use credit cards for all of the following reasons: (You may select more…

A: Credit cards refer to a credit facility that is provided by banks for allowing customers to borrow…

Q: Required 1 Required 2 Required 3 What amount of ending inventory would have been reported in the…

A: If Ford had only used FIFO, ending inventory in the current year would have been $6829 million

Q: Ruston Company established a petty cash fund for $440. By the end of the month, employees had made…

A: Introduction:- Journal entry is the first stage of accounting process. Journal entry used to record…

Q: Payment not Expected Knowledge Check 01 On December 1, after making a concerted effort, management…

A: Introduction:- Allowance method is used estimate of the amount the company expects will be…

Q: A company uses 1,500 units of Zeron per year.  Each unit has an invoice cost of P222, including…

A: Inventory is one of the current assets of the company which is recorded on the statement of…

Q: What is the cafeteria’s labor cost percentage for June?         What is the cafeteria’s labor…

A: According to Sunshine Community Hospital Public Cafeteria Cost Control Standards, the acceptable…

Q: The following information relates to Unique Ltd for the year 2020:  Annual Demand 408,375 units…

A: Total ordering cost is the total cost incurred on the total number of orders made to the company. It…

Q: A company sold bonds on January 1, 2021, for $207,913. This price represents a market rate of 9% on…

A: Bonds sold at premium: When the bonds are sold at a price more than its face value then the excess…

Q: hando Limited was incorporated during 2021: Preliminary costs (legal costs incurred in connection…

A:

Q: Suppose you borrow money from your parents for college tuition on January​ 1, 2019. Your parents…

A: The cost of college tuition fees would be equal to the present value of all future payments.

Q: Sunland Company's inventory on January 1, 2025, cost and retail are $97,500 and $141,000,…

A: Inventory - The products and materials that a company keeps on hand with the intention of reselling,…

Q: REQUIRED Use the information provided below to prepare the Cash Flow Statement of Nascar Limited for…

A: Two questions are posted. As per the policy, the first one will be answered.   The Cash flow…

Q: On January 1, 2021, a company granted 36,000 stock options to top executives. The options become…

A: INTRODUCTION: Compensation is a monetary or non-monetary payment paid in exchange for services done.…

Q: On January 1, 2022, Rover, Inc. purchased a patent giving it exclusive rights to manufacture a new…

A: Amortization expenses of patent: Amortization expenses per year  = (P240,000 / 8 years) = P30,000

Q: On July 1, 2022, Forest Company started doing business and paid $18,000 in advance for 12 months'…

A: The accounting transactions are recorded differently under accrual basis and cash basis accounting.…

Q: On October 1, 2021, Eagle Company borrowed $32,000 with 8% annual interest. The amount borrowed plus…

A: Given, Amount = $32,000 Interest rate = 8% October 1, 2021 to December 31, 2021 = 3 months

Q: An invoice for a laptop computer that costs $625.68 is dated September 15, with sales terms of 3/10…

A: 3/10 EOM : Here, EOM stands for the End of month and 3 represents the discount rate if payment is…

Q: Broadway Limited (“Broadway”) purchased a piece of equipment on 1 February 2022 and had it fully…

A: Cost of assets : Cost of assets includes it's purchase price and all other cost which is necessary…

Q: Kingbird Company uses the LCM method, on an individual-item basis, in pricing its inventory items…

A: Net realizable value (NRV) seems to be a common way to calculate the value of an inventory valuation…

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Q: a.Illustrate and give examples of how variances operate in an organisation and why management must…

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Q: My company made $x. The credit card company takes 3.5% off of every transaction. I received $522.22.…

A: Credit cards are very common now days and used by every one now days but there are charges related…

Q: PGL Corporation has a credit sale of $ 240,000 in 2018. The company estimates that 9 % of its credit…

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Q: A large St Louis feadmill Robert Orwig April, 1,450 May, 1,500, and June, 1.500. Processing,…

A: Aggregate planning using transportation method: Aggregate planning is an analytical tool for making…

Q: Outstanding stock of the Tamarisk, Inc. included 44000 shares of $5 par common stock and 20000…

A: Preferred dividends are the financial payments that an organization makes to its preferred…

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A: Introduction:- There are primarily three types of corporations that businesses form based on…

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Q: LO 6.4 RE6-5 Longmire & Sons made sales on credit to Alderman Sports totaling $500,000 on April 18.…

A: Companies that use the periodic inventory approach make no effort to calculate the cost of products…

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Q: What is the cafeteria’s labor cost percentage for June?         What is the cafeteria’s labor…

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Q: Diaz Company is a retail store with two operating departments, Clothes and Shoes. Information…

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Q: Explain the reasons for the impairment and the justification for treating the write-down as a…

A: When the book value or carrying value of the asset is more than the recoverable value of asset, then…

Q: umulated depreciation account increased $35,000. • Equipment costing $50,000 was sold during the…

A: Cash Flow Statement - Monitoring an organization's cash flow with the aid of a cash flow statement…

Q: Smith-Kline Company maintains inventory records at selling prices as well as at cost. For 2024, the…

A: The Retail Inventory Method is a process that is used in accounting to estimate the worth of a…

Q: bank

A: Bank reconciliation means the process of reconciling the causes of difference between the cash…

Q: Roe's Renovations utilizes the direct write-off method of accounting for uncollectible receivables.…

A: Bad debt means where the amount receivable from debtor is not expected to realize and hence it…