Should the gaap standard of using absorption for evaluation

Assignment Help Financial Accounting
Reference no: EM132898773

Question 1: Since costs can be hidden in the overhead, resulting in higher profits and a higher evaluation, should the GAAP standard of using absorption for evaluations be used instead of marginal/ variable costing for absorption accounting? Why or why not?

Reference no: EM132898773

Questions Cloud

What is the depreciation expense in year five : A project requires $27,682 of equipment that is classified as a 7-year property. What is the depreciation expense in Year 5 given the MACRS
What are the terminal cash flows in year six : What are the terminal cash flows in Year 6? The investment in net working capital was $4,588 which would be recovered at the end of the project.
What is the current valuation of a one-year risky cash flow : What is the current valuation of a one-year risky cash flow with a revised invoice of $1,100? What is the organization objectives toward virtue of profit?
Prepare a monthly manufacturing overhead flexible budget : Prepare a monthly manufacturing overhead flexible budget for 2020 for the expected range of activity, using increments of 1,800 direct labor hours
Should the gaap standard of using absorption for evaluation : Should the GAAP standard of using absorption for evaluations be used instead of marginal/ variable costing for absorption accounting? Why or why not?
What is the cost of goods sold for august : What is the cost of goods sold for August? All merchandise is marked up to sell at invoice cost plus 20%. Inventory at the beginning of each month is 30%.
Compute the simple rate of return for the new oven : Prepare a contribution format income statement showing the net operating income each year from production and sale of Billy's Favorite Bread.
What is discounted payback based upon initial cash outflows : What is the discounted payback based upon the initial cash outflows? The Bird Co. is considering a 7-year project that would require a cash outlay.
Do think financial managers viewed the change positively : When this concept was initially incorporated in the Tax Act, do you think financial managers viewed this change positively or negatively? Why?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What was the actual overhead cost

Reeves Company uses a predetermined overhead rate of $6.00 per machine hour. If the predetermined overhead rate was $6 per machine hour, overhead was underapplied by $40,000, and actual machine hours were 70,000; what was the actual overhead cost?

  Prepare a skeletal profit and loss statement showing dollars

Prepare a skeletal profit and loss statement showing dollars and percentages for a department showing the following values Purchases

  Find and calculate the asset turnover

Promised to pay the amount due after two years. Throughout the? year, it earned revenue of $56,000 every month. Calculate the asset turnover

  Transactions for bennett corporation in a journal

Record each of the transactions for Bennett Corporation in a journal.

  What is its value

Afterwards, a more stable 11 percent growth rate can be assumed. If a 12.5 percent discount rate is appropriate for this stock, what is its value

  Which would be added to net income

Which would be added to net income when computing cash flows from operating activities using the indirect method? Which is an operating activity?

  What if was a two percent fee charged on any balances

What if there was a 2 percent fee charged on any balances transferred? (Do not round intermediate calculations and round your answer to 2 decimal places)

  What internal control procedure

What internal control procedure(s) would best prevent or detect the following problems? A production order was initiated for a product that was already overstocked in the company’s warehouse. A production employee stole items of work-in-process inven..

  Prepare all necessary journal entries

Prepare all necessary journal entries related to each scenarios

  How much must newdex after-tax income increase to prevent

Newdex has net income of $3,000,000 and 1,000,000 shares outstanding. How much must Newdex's after-tax income increase to prevent dilution of EPS?

  How does an entity choose between depreciation methods

How does an entity choose between depreciation methods, for example, straight-line versus diminishing-balance methods in accordance with Para 60

  What is the value of a share of stock of nanya technology

What is the value of a share of stock of Nanya Technology to an investor who demands a 24 percent rate of return on this stock?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd