Business

Determine whether each of the following costs should be classified as direct materials, direct labor, or manufacturing overhead.

(a) Direct MaterialsDirect LaborManufacturing Overhead Frames and tires used in manufacturing bicycles. (b) Direct MaterialsDirect LaborManufacturing Overhead Wages paid to production workers. (c) Direct MaterialsDirect LaborManufacturing Overhead Insurance on factory equipment and machinery. (d) Direct MaterialsDirect LaborManufacturing Overhead Depreciation on factory equipment. EXPERT ANSWER Answer a) Frames and Tires used in manufacturing of bicycles: It is …

Determine whether each of the following costs should be classified as direct materials, direct labor, or manufacturing overhead. Read More »

Complete the following comparison table between managerial and financial accounting.

Financial Accounting Managerial Accounting Primary users of reports select an option Quarterly and AnnuallyGenerally Accepted Accounting PrinciplesInternal UsersGeneral-PurposeAs Frequently as NeededRelevance to DecisionsInternal ReportsSpecial-Purpose Information for Specific DecisionsAnnual Audit by Certified Public AccountantFinancial StatementsNo Independent AuditsExternal Users select an option No Independent AuditsExternal UsersSpecial-Purpose Information for Specific DecisionsAnnual Audit by Certified Public AccountantGeneral-PurposeGenerally Accepted Accounting …

Complete the following comparison table between managerial and financial accounting. Read More »

Following is a list of statements about managerial accounting and financial accounting. Indicate whether the statement is true or false.

1. Financial accounting focuses on providing information to external users. select an option FalseTrue 2. Analyzing cost-volume-profit relationships is part of managerial accounting. select an option TrueFalse 3. Part of managerial accounting is evaluating the impact on decision-making of alternative approaches for costing inventory. select an option TrueFalse 4. Preparation of budgets is part of …

Following is a list of statements about managerial accounting and financial accounting. Indicate whether the statement is true or false. Read More »

Why are intranets and extranets important to accountants?

EXPERT ANSWER The reasons for this growth are clear. Compared with earlier wide area networks (WANs) based on proprietary technology or expensive leased lines, Intranets and Extranets are significantly easier and less expensive to set up and operate. Intranets can offer organizations numerous operational efficiencies, and, as a result, they can generate staggering returns on …

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In an excel spreadsheet, calculate the real interest rate over the past 24 months (using monthly data) for the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the Fisher Equation.

EXPERT ANSWER The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. Therefore, real interest rates fall as inflation increases, unless nominal rates increase at the same rate as inflation. Sno month 30 year treasury bind rate (nominal interest rate) percentage change in CPI (inflation ) …

In an excel spreadsheet, calculate the real interest rate over the past 24 months (using monthly data) for the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the Fisher Equation. Read More »

In an excel spreadsheet, calculate the real interest rate over the past 24 months (using monthly data) for the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the Fisher Equation (15 points).

EXPERT ANSWER The Fisher Effect states that the real interest rate equals the nominal interest rate minus the expected inflation rate. Therefore, real interest rates fall as inflation increases, unless nominal rates increase at the same rate as inflation. Sno month 30 year treasury bind rate (nominal interest rate) percentage change in CPI (inflation ) …

In an excel spreadsheet, calculate the real interest rate over the past 24 months (using monthly data) for the 30 year Treasury bond rate as the nominal interest rate and assuming that expected inflation was equal to actual inflation (based on the change in CPI). Make sure to include the Fisher Equation (15 points). Read More »