Bacon Financial Advisors provides accounting and finance assistance to customers in the retail business. Bacon has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff runs about $573,000 per year, and normal billable hours are 8000 hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $753,000. What is the direct labor rate for the professional staff? (Round your answer to the nearest cent.)
A) $94.13 per hour
B) $22.50 per hour
C) $71.63 per hour
D) $165.75 per hour
C) $71.63 per hour
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Mandisa Sounds, Inc, a specialty retailer of customized audio systems for automobiles, installed a perpetual inventory system in the second quarter of 2011. The new system allowed the firm to adjust its merchandise inventories to sales patterns more
effectively and to prepare monthly financial statements. Although the system led to an improvement in sales and income, the gross margin on the monthly income statements was falling below both management's expectations and the industry average. At the end of 2014, a physical inventory revealed that actual merchandise inventory was considerably lower than the perpetual inventory records indicated. The merchandise inventories of some stores were off more than others, but all had deficiencies. What probably caused these losses and what steps could be taken to prevent them in the future?
Amortization of the premium on bonds payable is subtracted from net income in the reconciliation of net income to cash flows from operations because
a. interest expense understates the cash paid for interest by the amount of the premium amortization. b. it reduces income without causing a cash outflow. c. it increases income without causing a cash flow. d. it is a financing cash outflow.
For a web site, reinforcement refers to consistency between:
a. content and context b. communication and connection c. commerce and community d. customization, content, context, communication, connection, commerce, community e. none of the above
Tall organizations are characterized by loose supervision and fewer employees reporting to each manager
Indicate whether the statement is true or false