Answer: Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.
Explanation:
The Responsibility Income Statement is one where the different centers in a business have their own sub income statement so that the activities of each center and their profitability is measured and monitored.
In this statement, costs are classified as Variable and Fixed so it is important that it is known whether the costs are variable or fixed.
As the statements are per center, the costs in them would have to be only those that are directly traceable to that center so that a truer reflection of the statements can be seen.
The main concepts involved in preparing a responsibility income statement encompass the traceability of costs to the responsibility center and the form of organization of the responsibility center, either as a profit center or an investment center.
In preparing a responsibility income statement that shows both the contribution margin and the responsibility margin, two primary concepts involve the allocation of costs to varying centers. Firstly, one needs to ascertain whether these costs are directly traceable to the responsibility center, meaning it must be identifiable and characterized to a specific center. Secondly, it's imperative to determine whether the responsibility center is structured as a profit center or an investment center. A profit center bears responsibility for both costs and revenue, while an investment center is accoutable for costs, revenue and assets.
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One of the greatest risks of being entrepreneur is the risk of business failure
One of the greatest risks of being an entrepreneur is the possibility of business failure. Starting a new business is inherently risky, as there is no guarantee that the business will be successful.
Entrepreneurs may invest significant time, money, and resources into their businesses, but still be unable to generate sufficient revenue to cover their costs or turn a profit. Business failure can be financially and emotionally devastating for entrepreneurs, as well as damaging to their reputation and future career prospects.
Learn more about entrepreneur at brainly.com/question/353543
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Answer:
It is more convenient to continue the production in house.
Explanation:
Giving the following information:
The company is currently operating at capacity and has received an offer from one of its suppliers to make the 12,000 awnings it needs for $25 each. Old Camp’s costs to make the awning are $12 in direct materials and $7 in direct labor. Variable manufacturing overhead is 70 percent of direct labor. If Old Camp accepts the offer, $42,000 of fixed manufacturing overhead currently being charged to the awnings will have to be absorbed by other product lines.
Make in house:
Variable costs= 12 + 7 + (7*0.70)= $23.9
Total variable costs= 23.9*12000= 286,800
Buy= 25*12,000= $300,000
It is more convenient to continue the production in house.
Answer:
Governance Form.
Explanation:
The buyer has the right to request a copy of several documents, including the Governance Form. This form summarizes the board of directors and unit rights.
Answer:
Price of stock = $44.05
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.
The formula below would help
PV = G× (1+r)^(-n)
PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year
Year PV of dividend
1 2+6 ×× 1.1^-1 = 7.27
2 10 × 1.1^-2 = 8.26
3 12× 1.1^-3 = 9.02
4 14 × 1.1^-4 =9.56
5 16 × 1.1^-5 = 9.93
Total Present Value of dividend = 7.27+ 8.26 +9.02 +9.56 +9.93 = 44.05
Price of stock = $44.05
Maurer, inc.,has an odd dividend policy. The company has just paid a dividend of $2 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If yoy require a return of 10 percent on the company's stock, how much will you pay for a share today?
Answer:
Price of stock = $44.05
Explanation:
The price of a share can be calculated using the dividend valuation model
According to this model the value of share is equal to the sum of the present values of its future cash dividends discounted at the required rate of return.
To determine the price of the stock to , we calculate the present value for each of the dividend payable for the next five years and then sum them.
The formula below would help
PV = G× (1+r)^(-n)
PV = Present Value, r required rate of return - 10%, n- the year, G- dividend payable in a particular year
Year PV of dividend
1 2+6 ×× 1.1^-1 = 7.27
2 10 × 1.1^-2 = 8.26
3 12× 1.1^-3 = 9.02
4 14 × 1.1^-4 =9.56
5 16 × 1.1^-5 = 9.93
Total Present Value of dividend = 7.27+ 8.26 +9.02 +9.56 +9.93 = 44.05
Price of stock = $44.05
Answer:
B. 2,600 to 2,000.
Explanation:
tax revenue = units x tax rate
units = tax revenue / tax rate = 6,000/3 = 2,000
2,000 will be the quantity after taxes.
6000 goverment revenue - 3900 consumer surplus - 3000 producer surplus
900 deathweight loss
(tax x ↓unit)/2 = deathweight loss
(3 x ↓unit)/2 = 900
(3 x ↓unit) = 900 *2
↓unit = 1800/3 = 600
It decrease to 2000 from 2600
A $3 per unit tax creates a wedge between the price paid by consumers and the price received by producers, representing a production cost increase. This results in a leftward shifted supply curve, with reduced consumer and producer surplus. The burden of the tax is shared, decreasing the equilibrium quantity of goods.
When a $3 per unit tax is imposed on a good, the government creates a wedge between the price paid by consumers and the price received by producers. The distance between these prices equals the tax rate.
The new market price is the price paid by consumers, but sellers receive less per unit sold as they pay the difference (tax) to the government. This tax is akin to an increase in production cost, symbolized by a leftward shift of the supply curve. The new supply curve intercepts the demand at the new quantity.
The tax revenue is found by multiplying the tax per unit by the total quantity sold. The tax incidence, or burden, is shared by both consumers and sellers. In this case, the consumers' surplus decreased by $3,900 and the producers' surplus decreased by $3,000, causing a total tax revenue of $6,000 and a decrease in the equilibrium quantity of goods.
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