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Question - Determine the amount of liability at December 31, 2016 for each of the following independent cases:
Pistons Company sells portable DVD players for P28,000 each and offers to each customer a 3- year service contract for an additional P3,300. During 2016, the company sold 800 DVD players and 500 service contracts for cash. Expenses related to the service contracts for 2016 amount to P90,000. Past records of the company indicate that the pattern of repairs has been 50% in the year after the sale, 30% in the second year, and 20% in the third year. Sales of the contracts are made evenly during the year.
If you were to perform a vertical analysis of this income statement, you would divide each of these income statement line items by
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Which one of these management accounting tools ( balanced scorecard, target costing, transfer pricing, life cycle costing , reward system, etc)
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Find variable or fixed with respect to the number of units produced and sold and then whether it would be a selling cost, an administrative cost
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