Gordin Kennel uses tenant-days as its measure of activity; an animal housed in the kennel for one day is counted as one tenant-day. During May, the kennel budgeted for 3,000 tenant-days, but its actual level of activity was 3,020 tenant-days. The kennel has provided the following data concerning the formulas used in its budgeting and its actual results for May:Data used in budgeting: Fixed element per monthVariable element per tenant-dayRevenue - $27.60 Wages and salaries$2,000 $5.20Food and supplies 800 10.20Facility expenses 8,500 3.70Administrative expenses 6,000 0.10Total expenses$17,300 $19.20?Actual results for May:? Revenue$86,322Wages and salaries$17,984Food and supplies$32,444Facility expenses$19,554Administrative expenses$6,162?The spending
variance for food and supplies in May would be closest to:
A. $1,044 U
B. $840 U
C. $840 F
D. $1,044 F
Answer: B
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Offshoring to low-cost countries is most attractive for products with
A) large production volume. B) high variety. C) low labor content. D) a high ratio of transportation cost to product value.
Coastal Pharma and Brainwave Technologies have together invested and created a new organization, InnerView, to focus on developing diagnostic devices. Through this new firm, both companies are attempting to combine their core competencies to innovate and reduce their risks associated with transaction-specific investments. However, the new organization operates independent of Coastal Pharma and Brainwave Technologies. Which of the following alternatives to integration does this scenario best illustrate?
A. a corporate acquisition B. a franchisee C. a joint venture D. a licensing contract
Based on the information in Table 3, what is Thompson's projected cumulative borrowing as of March 1, 2014?
Thompson Manufacturing Supplies' projected sales for the first six months of 2014 are given below. Jan. $250,000 April $400,000 Feb. $300,000 May $450,000 March $400,000 June $400,000 40% of sales is collected in the month of the sale, 50% is collected in the month following the sale, and 10% is written off as uncollectible. Cost of goods sold is 70% of sales. Purchases are made the month prior to the sale and are paid during the month the purchases are made (i.e. goods sold in March are bought and paid for in February). Total other cash expenses are $50,000/month. The company's cash balance as of February 1, 2014 will be $40,000. Excess cash will be used to retire short-term borrowing (if any). Thompson has no short-term borrowing as of February 28, 2014. Assume that the interest rate on short-term borrowing is 1% per month. The company must have a minimum cash balance of $25,000 at the beginning of each month. Round all answers to the nearest $100. A) $85,000 B) $45,000 C) $70,000 D) - 0 -
The Viviana Co. uses the indirect method to determine its cash flow from operations. Which of the following items will be subtracted from net income to find its cash flow from operations?
A. Depreciation Expense. B. Increase in Accounts Payable. C. Decrease in Supplies. D. Increase in Accounts Receivable.