• Q : How to estimate the fixed cost....
    Accounting Basics :

    Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the behavior of the company's costs.

  • Q : Explain the product under the variable costing method....
    Accounting Basics :

    Which of the following best describes costs assigned to the product under the variable costing method?Which of the following best describes costs assigned to the product under the variable costing met

  • Q : Which will increase overall fixed costs by a total....
    Accounting Basics :

    Comodo Ltd. plans to triple its marketing budget next year, which will increase overall fixed costs by a total of 10%. This change will have no effect on variable costs, which will remain $5 for eac

  • Q : Explain how information from the journal entries....
    Accounting Basics :

    As required to complete Course Project 1, one must follow the cycle that includes 10 steps to complete the accounting cycle.

  • Q : The companys accounting equation....
    Accounting Basics :

    On January 31, Jean Marie's business receives a bill for that month's utilities in the amount of $500. Jean sets it aside because she does not plan to pay the bill until its due date of February 15.

  • Q : Explain how separation of duties can satisfy....
    Accounting Basics :

    Internal Control Procedures are required to safeguard company assets and to ensure ethical operation of the business.Explain how separation of duties can satisfy the purpose of internal control and

  • Q : How the ratio can be used in decision....
    Accounting Basics :

    To evaluate the financial operation and health of a business ratio analysis is used. (1) Provide the formula for the Debt Ratio and explain how it is computed and (2) provide an example of how this

  • Q : Explain the advantages and disadvantages of cost-plus....
    Accounting Basics :

    Annual fixed costs of $4,000,000 and variable costs of $400 per unit and estimates that it can sell 40,000 pumps annually and marks up cost by 30 percent. Using cost-plus pricing.

  • Q : What is the gain or loss or dividend income....
    Accounting Basics :

    What is the gain or loss or dividend income to the shareholder? What is the shareholder's remaining basis in his shares after the redemption? What is the reduction in corporate earnings and profits?

  • Q : Calculate the income summary account to retained earnings....
    Accounting Basics :

    Kohler Corporation reports the following components of stockholders' equity on December 31, 2013:Purchased 4,500 shares of its own stock at $20 cash per share.

  • Q : Accumulated earnings and profits....
    Accounting Basics :

    The sole stockholder in ABC corporation. ABC corporation has accumulated earnings and profits of $15,000 and current earnings and profits of $8000. My basis for ABC corp's stock was $5000.

  • Q : Assuming the tax rate....
    Accounting Basics :

    Sudowood, Inc. reported pretax book income of $1 million. During the current year, net reserve for warranties increased by $25,000. Book depreciation exceede.

  • Q : Calculate the annual amount of depreciation....
    Accounting Basics :

    What was the annual amount of depreciation for the years 2011, 2012, and 2013, using the straight-line method of depreciation?

  • Q : The committee has considered separating the gift....
    Accounting Basics :

    You are the director of a Washington, D.C., think tank focusing on tax and economic policy issues. You were recently (and informally) contacted by staff of the congressional joint committee on taxat

  • Q : Partial liquidation treatment....
    Accounting Basics :

    A corporate shareholder generally will prefer.partial liquidation treatment for a corporate nonliquidating distribution.dividend treatment for a nonliquidating stock redemption.

  • Q : The investors perceive bond to be a very safe investment....
    Accounting Basics :

    When a company issues a bond at a premium: A. the company is more profitable than most companies in its industry. B. investors perceive the bond to be a very safe investment. C.

  • Q : General corporation employs....
    Accounting Basics :

    Work in Process consisted of two jobs, no. 101 ($20,400) and no. 103 ($14,800). During May, direct materials requisitioned from the storeroom amounted to $96,500, and direct labor incurred totaled $

  • Q : What are the equivalent units for direct materials....
    Accounting Basics :

    Assume the company uses the Weighted Average inventory method. If materials are added when the production process begins and direct labor is applied uniformly throughout the process.

  • Q : How a particular common stock has an annual cash....
    Accounting Basics :

    A particular common stock has an annual cash dividend of $2.00 per share and is predicted to have a market value of $30 per share 5 years from now. Assuming a discount rate of 10%, a fair market pri

  • Q : The four methods of evaluating capital projects....
    Accounting Basics :

    Which of the four methods of evaluating capital projects would you prefer to use, and why? How would the type of capital investment decision you were making affect your choice of method?

  • Q : The current ratio at the end of the year....
    Accounting Basics :

    The current asset section of Guardian Consultant's balance sheet consists of cash, accounts receivable, and prepaid expenses.

  • Q : The work-in-process inventory controlling account....
    Accounting Basics :

    During July, the equivalent full units of direct materials added to the product worked on by Department A amounted to a total of 90,000 applied as follows: beginning inventory, 20,000 units; units s

  • Q : Annual contractual payments....
    Accounting Basics :

    On December 31, 2010, Lopez Co (lessee) signed a 3-year, non-cancelable lease for the use of manufacturing .now owned by Zinger Inc (lessor). The lease expires December 31, 2013 and has the followin

  • Q : What are the planned direct materials purchases]....
    Accounting Basics :

    Fallgatter, Inc., expects to sell 17,500 units. Each unit requires 3 pounds of direct materials at $12 per pound and 2 direct labor hours at $10 per direct labor hour.

  • Q : Explain how you will visually represent the data....
    Accounting Basics :

    Explain how you will visually represent the data for the total sales of the individual inventory categories for each location for the time periods shown.

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