The given statement, "The board of directors oversees and ratifies strategic decisions and evaluates, rewards, and, if necessary, penalizes top managers" is true
<u>Explanation:
</u>
A board of directors is a team of experts elected by stockholders of a company to serve the interest of the stockholders and ensure that the company management behaves on their behalf. The Chairperson or Chairman of the Board is the head of the Board of Directors.
The board of directors supervises and ratifies strategic decisions as intermediaries between the owners and managers and reviews, awards and, if required, punishes top management.
These includes the following,
- Composition
- Leadership structure
- Interlocks
The Board decides on the employment and recruitment of employees, share price measures, payments, and employee compensation.
Answer:
$4,000
Explanation:
The operating activities is the activities which records day to day activities i.e change in working capital, loss or profit on sale of long term assets, depreciation expense etc
In the given situation, there is a loss of $4,000 on the sale of equipment and the same is recorded under the operating activity in a positive sign
The sale of an equipment and the purchase of an equipment would be shown in the investing activity . Hence, we do not considered here
Answer:
Controllable margin =$125,000
Return on investment = 20%
Explanation:
<em>Controllable margin is the difference between the sales revenue and the controllable cost. Controllable costs include variable and fixed cost directly under the control of the manager and which are influenced by his decisions.</em>
Controllable margin - Sales revenue - variable cost - controllable fixed cost
Controllable margin= $500,000 - $300,000 - 75,000 = $125,000
Controllable margin =$125,000
Return on investment = (controllable margin/ Average investment) × 100
= (125,000/625,000) × 100 = 20%
Return on investment = 20%
Answer:
$11.2 per unit
Explanation:
The computation of the variable cost per unit is shown below:
= Variable direct materials cost per unit + Variable direct labor cost per unit + Variable factory overhead cost per unit + Variable selling and administrative cost per unit
= $4.34 per unit + $5.18 per unit + $0.98 per unit + $0.70 per unit
= $11.2 per unit
We simply added the entire variable cost per unit so that the accuracy per unit could be reached
