which a new corporation is formed to take over the assets of two or more previously separate companies and all of the combining companies are dissolved. 4 Goodwill arises in a business combination accounted for under the acquisition method when the cost of the investment (fair value of the consideration transferred) exceeds the fair value of identifiable net assets acquired. Under GAAP‚ goodwill is not amortized for financial reporting purposes and will have no effect on net income‚ unless the goodwill
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Solution maf420 Question 1 a) Kettle : 3000 unit per month : 1‚500 kg of Material L Rice cooker : 1000 unit per month : 1‚500 kg of Material L So‚ the ratio is 1:3. If the company wishes to fulfill all the targeted kettle produce‚ therefore they should use all the material available to produce rice cooker for produce that component. From here‚ we can conclude that‚ the company need to scarified 1000 unit of rice cooker to produce 3000 unit of kettle. The total contribution lost is….
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Chapter 7 Reporting and Interpreting Cost of Goods Sold and Inventory ANSWERS TO QUESTIONS 1. Inventory often is one of the largest amounts listed under assets on the balance sheet which means that it represents a significant amount of the resources available to the business. The inventory may be excessive in amount‚ which is a needless waste of resources; alternatively it may be too low‚ which may result in lost sales. Therefore‚ for internal users inventory control is very important
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Chapter 7 Homework Solutions Q7-1 Absorption and variable costing differ in how they handle fixed manufacturing overhead. Under absorption costing‚ fixed manufacturing overhead is treated as a product cost and hence is an asset until products are sold. Under variable costing‚ fixed manufacturing overhead is treated as a period cost and is expensed on the current period’s income statement. Q7-2 Selling and administrative expenses are treated as period costs under both variable costing and absorption
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Unit 14 (14.3) Explain how to promote children’s health and well being in early year’s work setting 3.1 Children learn and develop best when they are healthy‚ safe and secure‚ when their individual needs are met and when they have positive relationships with the adults caring for them. We promote health and well being in our setting by providing children with activities indoor and outdoor. We provide a bright and light environment full of different activities set out in two different areas of the
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Which of the following defines variable cost behavior? Total cost reactionto increase in activity|Cost per unit reactionto increase in activity| a.|remains constant remains constant| b.|remains constant increases| c.|increases increases| d.|increases remains constant| ____ 2. When cost relationships are linear‚ total variable prime costs will vary in proportion to changes in a
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Managerial Accounting and Control Decision Making: Relevant Costs and Benefits Case 14-62 Submited to: Prof. Virgilio c. Avila Submitted by: Roy Kondoy Shella Faye Background of the Study Sportway Corporation Sportway is a wholesale distributor supplying a wide range of moderately priced sports equipment to large chain stores Products: 60% purchased‚ 40% manufactured The company has a Plastics Department that is currently manufacturing molded fishing tackle boxes Sportway
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CHAPTER 1 Accounting in Action ASSIGNMENT CLASSIFICATION TABLE Brief Exercises A Problems B Problems 5‚ 6‚ 7‚ 11 1A‚ 2A‚ 4A 1B‚ 2B‚ 4B 3 6‚ 7‚ 8‚ 10‚ 11 1A‚ 2A‚ 4A‚ 5A 1B‚ 2B‚ 4B‚ 5B 4 8‚ 9‚ 12‚ 13‚ 2A‚ 3A‚ 14‚ 15‚ 16‚ 17 4A‚ 5A 2B‚ 3B‚ 4B‚ 5B Learning Objectives Questions Do It! Exercises 1. Explain what accounting is. 1‚ 2‚ 5 1 1 2. Identify the users and uses of accounting. 3‚ 4 1 2 3. Understand why ethics is a fundamental business concept. 4. Explain accounting standards
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SREERAM COACHING POINT COST Management Test Questions & Suggested Solutions by L. Muralidharan‚ FCA.‚ Grad. CWA.‚ COST MANAGEMENT - TEST QUESTIONS & SOLUTIONS Question: 1 Bharata Ltd is considering proposals for design changes in one of a range of soft toys. The proposals are as follows: (a) Eliminate some of the decorative stitching from the toy. (b) Use plastic eyes instead of glass eyes in the toys (two eyes per toy). (c) Change the filling material used. It is proposed that scrap fabric
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The following essay explains the importance of cost accounting for stakeholders of Multinational Companies‚ particularly the shareholders & the customers. Who are the stakeholders of an organization? according to (Freeman 1984) stakeholder is “any group or individual who can affect or is affected by the achievement of the firm’s objectives” going by this definition stakeholders of a company would include lenders‚ creditors‚ customers‚ shareholders‚ government‚ media‚ political groups‚ local charities
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