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1 year ago

Where does the management accounting function fit into an organization's structure?

1 answer:

6 0

Management accounting is the process of measuring and analyzing financial and non-financial information that is relevant to the company. This is an important part of the Controller’s function in an organization since the Controller directly reports to the chief financial officer. The report contains pieces of information which contributes in making strategic decisions to achieve the goal of the organization.

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After graduation, you plan to work for Dynamo Corporation for 12 years and then start your own business. You expect to save and

ExtremeBDS [4]

Answer:25,000 in 12 years = 25,000*(1.09)^12= $70,316

Value of $7,500 deposits in 6 years

Use financial calculator and input these values

N=6

PV=0

PMT=7,500

I=9

Compute FV= 56,425, after this

PV= 56,425

PMT= 15,000

I=9

N=6

Compute FV=$ 207,480

We will have (207,480+ 70,316) = $277,796 in 12 years to start our business.

Explanation:

4 0

1 year ago

Imagine that you're a dental hygienist. While cleaning a client's teeth you ask what flavor toothpaste to use and they say "oran

Snowcat [4.5K]

Answer:

A letter.

Explanation:

7 0

1 year ago

Work specialization contributes to higher employee productivity, but at the price of __________. Select one: a. Reduced economie

Yakvenalex [24]

Answer:

The correct answer is letter "D": Reduced job satisfaction.

Explanation:

Work specialization refers to limiting the number of activities to employees so they can focus on determining duties only. This is implemented in an attempt of mastering workers in performing the work they are assigned to do. However, work specialization brings automation which does not allow employees to develop their skills at work and, consequently, leads to reduced job satisfaction.

6 0

2 years ago

Sagon Corporation has provided data concerning the Corporation's Manufacturing Overhead account for the month of September. Prio

Romashka [77]

Answer: Manufacturing overhead for the month was underapplied by $19,000.

Explanation:

From the question, we are informed that before the closing of the overapplied or underapplied balance to cost of goods sold, the total of the debits to the manufacturing overhead account was $75,000 and the total of the credits to the account was $56,000.

This implies that the manufacturing overhead for the month was underapplied by ($75000 - $56000)= $19000. The manufacturing overhead debit balance shows that manufacturing overhead was simply underapplied in this case.

6 0

2 years ago

Problem 16-17 Firm Value [LO2] Change Corporation expects an EBIT of $25,000 every year forever. The company currently has no de

PolarNik [594]

Answer and Explanation:

The computation is shown below:

a. The current value of the company is

As it is mentioned that the company has no debt that means it is unlevered firm that is equivalent to unlevered value of the company

Unlevered value of the firm = Vu

Vu = EBIT × (1 - tax rate ) ÷ unlevered Cost of Equity

= EBIT × (1 - tax rate ) ÷ R0

= $25,000 × (1 - 0.22 ) ÷ 12%

= $162,500

b-1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of unlevered value

VL = Vu + Borrowing × tax rate

where,

Debt = borrowing = 50% × unlevered value of company

Debt = borrowing = 50% x Vu

So,

VL = Vu + Borrowing x tax rate

VL = $162,500 + ($162,500 × 50%) × 22%

= $162,500 + $17,875

= $180,375

b-2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of unlevered value

Levered value of the firm VL

VL = Vu + Borrowing × tax rate

Debt = borrowing = 100% × unlevered value of company

Debt = borrowing = 100% × Vu

So,

VL = Vu + Borrowing x tax rate

= $162,500 + ($162,500 × 100%) × 22%

= $162,500 + 35,750

= $198,250

C.1.

The computation of the value of the firm in the case when the value of the firm is equivalent to 50% of the levered value

VL = Vu + Borrowing × tax rate

= Vu + (VL × 50%) × tax rate

VL = Vu + (VL × 50%) × 22%

VL = Vu + 0.11 VL

VL - 0.11 VL = 162,500

0.89 VL = 162,500

VL= 182,584.27

C.2.

The computation of the value of the firm in the case when the value of the firm is equivalent to 100% of the levered value

Levered value of the firm VL

VL = Vu + Borrowing x tax rate

VL = Vu + (VL × 100%) × tax rate

= Vu + (VL × 100%) × 22%

= Vu + 0.22 VL

VL - 0.22 VL = 162,500

0.78 VL = 162,500

VL= $208,333.33

6 0

2 years ago