Which of the following is not considered a business (source) document?
a. Time card
b. Purchase order
c. Sales invoice
d. Schedule listing all the insurance policies in force
d
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Which of the below categories of AI is used extensively in the finance industry to analyze situations where the logic or rules are unknown?
A. Virtual reality B. Neural network C. Expert system D. Genetic algorithm
A magazine's ad rates are based on its contents.
Answer the following statement true (T) or false (F)
Which of the following is not true about occupational segregation?
A. It means that women cannot get the jobs that could break the cycle of relatively low pay. B. The pay gap in American businesses persists, in part, because of it. C. It concentrates women in traditionally female-dominated jobs. D. The technology sector is dominated by women.
Franklin Industrial Equipment Corporation manufactures lawn mowers and snow blowers. It also manufactures engines that are used by the Lawn Mower Assembly Division (LMAD). The Engine Division (ED) also sells about 40% of its output to the outside market (these are multipurpose engines). Its annual capacity is 150,000 units and annual output is 135,000 units. All engines sold internally to the LMAD are priced at cost plus 20% markup.In January 2020, the Snow Blower Assembly Division (SBAD) approached the ED to 'buy' 20,000 engines. Jean Wyse, the controller of ED, computed the costs of manufacturing these engines as follows: Total Per unitMaterials$300,000 $15.00 Labor 400,000 20.00 Special equipment 36,000 1.80 Quality inspection 24,000 1.20 Other manufacturing
costs 350,000 17.50 Total costs$1,110,000 $55.50 Wyse quoted a price of $66.60 for each engine transferred to the SBAD. Jeb Hart, the manager of SBAD, was furious to note that the ED was "trying to make money off a sister division." He argued that the price must include only the cost of materials, as all other costs will be incurred irrespective of whether or not SBAD places the order for 20,000 engines. Mark Matley, the production manager of ED, pointed out that the special equipment will be purchased only for fulfilling this internal order. Moreover, he argued that inspection must also be done just like on all other engines; therefore, the inspection costs must also be included. Labor is paid a flat monthly salary. Other manufacturing costs include both variable and fixed components (in roughly equal proportion).Required:(a) Given that excess capacity exists, what is the minimum price that the ED should charge to the SBAD?(b) What are the pros and cons of internal sourcing? What will be an ideal response?