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When an income statement shows data for segments of the organization, and data for each segment are added together to get totals for the whole organization:
a. all expenses should be allocated to the segments.
b. common fixed expenses should be allocated to the segments.
c. only direct revenues and direct expenses should be assigned to segments.
d. direct fixed expenses should be subtracted as one amount in the "total" column.
A foreign project that is profitable when valued on its own will always be profitable from the parent firm's standpoint. True or false? Explain.
What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect materials is a variable cost and factory rent was a fixed cost?
Why is the identification of favorable and unfavorable variances so important to a company? How can the identification of the variances help management control costs?
evaluate the synergies gained for the company as a result of the business combination and how the combined business is better positioned to compete in the global marketplace.
Greenspan Company management predicts $500,000 of variable costs, $800,000 of fixed costs, and a pretax income of $100,000 in the next period. Management also predicts that the contribution margin per unit will be $60.
In its year 2 financial statements, Gregory's on Ormond would recognize compensation expense relative to the options of how much?
Describe how the authoritative literature addresses comprehensive income. Describe three classifications within net income and give an example of each. Describe three classificiations within other comprehensive income and give an example of each.
Walker Company had total revenue and expense numbers of $1,500,000 and $1,200,000, respectively, in the current year. In addition, the company had a gain of $230,000 that resulted from the passage of new legislation, which is considered unusual an..
What is the break-even point (BEP) and why is it important? What is the Contribution Margin (CM) and why is it important?
Determine the amount of interest expense the restaurant will report on the June pro forma income statement. What amount will his restaurants report as interest expense on the July proforma income statement?
In response to these problems, Congress passed the Sarbanes-Oxley Act of 2002. Recommend internal controls that would satisfy the Sarbanes-Oxley Act.
What happens if a company fails to follow the realization concept or revenue recognition concept and say, records revenue they have not yet earned to hide the fact that they are having a bad year in sale? what are the legal repercussions accountin..
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