Racxel  PLC is a multi-divisional organisation manufacturing four different product lines. The directors of Racxel are worried about its costing and performance management systems which are based around absorption costing and financial ratio analysis. Required: Draft a briefing note to the Directors of Racxel that discusses: a. The benefits of replacing absorption costing with activity-based costing   b. The weaknesses associated with traditional, financially focused performance measurement systems like ratio analysis c. The benefits of using the economic value added (EVA) system

Q: Percy Corporation was formed on January 1. The corporate charter authorized 100,000 shares of $10…

A: The journal entries are prepared to keep the record of day to day transactions of the business on…

Q: On April 1, 2024, Sandhill Company purchased 46,400 common shares in Ecotown Ltd. for $13 per share.…

A: Journal entry is the procedure for initially documenting commercial transactions in the books of…

Q: In 2021, a 52-year-old participant in a 401(k) plan may contribute a maximum of: Multiple Choice O O…

A: A qualifying profit-sharing plan may include a component known as a 401(k), which gives workers the…

Q: NewTech purchases computer equipment for $261,000 to use in operating activities for the next four…

A: Annual depreciation = (Cost-salvage value)/Useful life Year end book value = Beginning book value -…

Q: Thomas Consultants provided Bran Construction with assistance in implementing various cost-savings…

A: If a company uses the expected value as estimate, it represents that the company would include the…

Q: product line. (Do not round intermediate calculations. Round your answers to 2 decimal places.) 1.…

A: ROI ROI stands for return on investment.  It is a measure of performance which is used to determine…

Q: On January 1, 2020 a machine was purchased for 403,000 by Metlock Leasing co. The machine is…

A: Journal entries refers to the recording of business transaction in the books of accounts showing…

Q: a. i) Produce a budget statement for Caltex for November  ii) Produce a profit statement for Caltex…

A: Particulars Calculation Amount Sales 3000 units x 72 216000 Less: Variable cost     Direct…

Q: Which of the four costing methods is best for an organization to use? Why?

A: The costing methods are the methods that are used by companies to determine the true cost related to…

Q: A company began January with 9,000 units of its principal product. The cost of each unit is $5.…

A: The total cost of goods purchased or produced during a given time period is then divided by the…

Q: a) Determine total net income if all products are sold at split-off point. b) Determine total net…

A: 1.At split off point, Joint cost to each product should be apportioned to each product in the ratio…

Q: The contribution margin for Product A is $50 per hour and $45 per hour for Product B. The machine…

A: Lets understand the basics. This question relates to deciding which product to produce first and and…

Q: During 2021, Leah places $2,800,000 of Section 179 property in service for use in her manufacturing…

A: 1. The Section 179 tax deduction allows companies to deduct the purchase price of new equipment 2.…

Q: Alimo Trading co. in Canada Imports Almonds from a seller in California, USA to be sold in retail in…

A: Introduction: When one company located in one country buys goods from other company located in…

Q: Hw.19. KitchenArt Co. usually purchases its mixer inventory from Johnson Company every quarter…

A: Kitchen Art Co. usually purchased mixer from Johnson Company @ $35. Allison company offered the same…

Q: Listed below are the transactions that affected the shareholders' equity of Branch-Rickie…

A: A cash dividend is the distribution of funds or money paid to stockholders generally as part of…

Q: Listed below are selected accounts from ABC balance sheet as of December 31, 2022: Accounts…

A: Current liability: It implies to the debt or obligation of the business that has to be repaid within…

Q: Smithson Mining operates a silver mine in Nevada. Acquisition, exploration, and development costs…

A: A liability that is associated with the eventual retirement of a fixed asset is referred to as an…

Q: How isaccounting for a partnership ifferent from accounting for a corporation

A: Accounting processes for a partnership business and accounting processes for a corporation have…

Q: Sun Corporation was organized on January 1, 2013. The articles of  incorporation authorized 200,000…

A: Debit what comes in, Credit what goes out Debit the receiver, Credit the giver Debit all expenses,…

Q: On May 31, 2021, Joe's Car Lot sold Anthony a used car on account for $20,000.  Joe's Car Lot uses…

A:

Q: Use the following information for the Exercises below. (Algo) [The following information applies to…

A: Depreciation rate as per double declining balance method = (100/useful life) ×2 = (100/4) ×2 = 50%

Q: Brandin Grocers gives one loyalty point to its customers for every dollar spent in the store.  The…

A: Liability means the amount which is to be paid to an outsider by business.  It is the present…

Q: On January 1, 2024, Rick's Pawn Shop leased a truck from Corey Motors for a six-year period with an…

A: 1 jan.2024 pv of n=6yrs,  i=7% Lease payment = $26,000× 4.76653   =$123,930 Dec.31, 2024 Interest…

Q: The following data are accumulated by Lone Star Security in evaluating two competing investment…

A: AVEREAGE RATE OF RETURN THIS IS ONE OF THE METHOD OF CAPITAL BUDGETING. THIS METHOD MEASURES THE…

Q: Ms. Schmidt didn't request an extension of time to file a 2021 income tax return and didn't mail the…

A: Penalty for late filing is levied when you don't file your income tax return by the due date.…

Q: ou have $8,800 to buy a bc he number of months:

A: Answer : Amount = $8800 Principal = $250 rate = 2.4% Month = ?

Q: ACTUAL OPERATING RESULTS CURRENT MONTH Revenue Source Number of Guests Restaurant Lounge Banquet…

A: Revenue forecasting makes predictions about your company's earnings over an extended period of time,…

Q: 37 Additional details: 38 Below you will see yellow data boxes labeled with the letters A through M.…

A: Cash Budget The cash budget is a sort of budget that projects how much money will come in and go out…

Q: Date March 1 March 5 March 9 March 17 March 22 March 27 March 30 Transactions Beginning inventory…

A: 1. Calculation of inventory using the Specific Identification Method on 31st March Date…

Q: Required information [The following information applies to the questions displayed below.] Jacob is…

A: Qualified business income refers to the deduction of tax that is allowed to small business and…

Q: You have been appointed as a financial consultant by the directors of Cochin Holdings. They require…

A: Year Future Value factor @   10% 1 1 2 1.1 3 1.21 4 1.331 5 1.4641 Future value…

Q: 16.Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $200,000 in…

A: Introduction Fair market value  is the amount that a goods would sell for on the market place if…

Q: With the estimates shown below, Sarah needs to determine the trade-in (replacement) value of machine…

A: The word "replacement cost" refers to the amount of money that a company has to pay at the present…

Q: On January 13, 2025, Carla Vista Corporation discovered that goods in transit of $115,150 with terms…

A: Journal entries refer to teh recording of transactions in the format of debit and credit amounts…

Q: The budget director of Heather's Florist has prepared the following sales budget. The company had…

A: Preparation of schedule of cash receipts and calculation of accounts receivables are as follows

Q: Tinto Ltd obtained control of Suda ltd by acquiring 80% of the issued share capital of Suda ltd at 1…

A: Journal entry is a primary entry that record the financial transactions initially. The transactions…

Q: Research about and in your own words, describe the different EXCLUSIONS FROM GROSS INCOME: Ø…

A: Deduction in respect of life insurance (80C) The provisions of sub-section (2) shall apply only to…

Q: Mirabile Corporation uses activity-based costing to compute product margins. Overhead costs have…

A: Given, Supervising activity cost = $41,040 Total number of batches = 1,900

Q: Requested: 1. The common size analysis (vertical analysis) for the above financial statements…

A: Vertical analysis is widely used to compare the items of financial statements by representing each…

Q: Why does FASB like the retrospective approach? Does it always have to be used?

A: The FASB stands for the Financial Accounting Standards Board. It is a non-profit organization that…

Q: On January 1, the Matthews Band pays $65,200 for sound equipment. The band estimates it will use…

A: The value of an asset is equally decreased over each period with the straight-line depreciation…

Q: Balance Sheet You are evaluating the balance sheet for Campus Corporation. From the balance sheet…

A: Current assets  = $691000 Cash and marketable securities = $397,000, Accounts receivable $197,000,…

Q: Gundy Company expects to produce 1,272,000 units of Product XX in 2020. Monthly production is…

A: A flexible budget is one based on different volumes of sales. A flexible budget flexes the static…

Q: Question: A company is a separate legal entity. briefly explain.

A: A company can be defined as a legal entity that is established by a group of individuals to operate…

Q: Gould Corporation uses the following activity rates from its activity-based costing to assign…

A: Activity based costing is the system which allocates the overhead cost on the basis of cost driver…

Q: What is the annual depreciation? What is the book value after 6 years? What is the total…

A: Particulars Amount (P) Cost of equipment 500000 Installation cost 60000 Other Cost 40000…

Q: Key figures for Apple and Google follow. $ millions Cash and equivalents Accounts receivable, net…

A: The Statement of Financial Position - The statement of financial position is the position of the…

Q: el costs are allocated based on the average number of employees in the two divisions. There are two…

A: Under the current allocation system, the total overhead cost will be allocated on a single…

Q: Kevin's Televisions produces television sets in three categories: portable, midsize, and…

A: Answer to Question:- Category Value of Ending Inventory   Workings Portable…