An appraisal was requested on an office building that contains 100,576 square feet. The appraiser found three sales to compare and gave Sales 1 and 3 most weight in final reconciliation. Sale 2 was given no weight. The subject was 10% superior to Sale 3 but Sale 1 was 15% superior to the subject. The subject was 25% superior to Sale 2. What is the net adjustment to Sale 3? -10%-15% +15% +10%
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- e. Eleanor's business accountant suggests using a reducing balance model of depreciation for the kebab fryer. He is suggesting that the fryer depreciates at a rate of 1.2% per month. Write down a recurrence relationship, in terms of Fn, that models the value of Eleanor's kebab fryer after n months. f. Write a rule to model the reducing balance depreciation of the fryer. g. Using the reducing balance method, find the value of the fryer after 9 years. 10²4 h. Which method of depreciation (unit cost or reducing balance) should Eleanor choose and why?1. Cost: Research expenditures incurred last year, related to new product Decision: Product introduction to marketplace Relevant or Irrelevant? 2. Cost: $4 million advertising program Decision: Whether to promote product A or B with the $4 million program Relevant or Irrelevant? 3. Cost: Manufactured cost of existing inventory Decision: Whether to discard the goods or sell them to a third-world country Relevant or Irrelevant?Suppose that there has been no additional acquisition and no customer who has returned as an active customer once she left. Which of the following statements is NOT correct? A) The acquisition rate is 5%. B) The retention rate at the end of year 2 is 29.63%. C) The acquisition cost per customer is $15. D) The survival rate at the end of year 1 is 53.22%.
- Muskogee Company had sales of 60,000,000 in 20x1. In 20x5, sales had increased to 75,000,000. A quality improvement program was implemented at the beginning of 20x1. Overall conformance quality was targeted for improvement. The quality costs for 20x1 and 20x5 follow. Assume any changes in quality costs are attributable to improvements in quality. Required: 1. Compute the quality cost-to-sales ratio for each year. Is this type of improvement possible? 2. Calculate the relative distribution of costs by category for 20x1. What do you think of the way costs are distributed? (A pie chart or bar graph may be of some help.) How do you think they will be distributed as the company approaches a zero-defects state? 3. Calculate the relative distribution of costs by category for 20x5. What do you think of the level and distribution of quality costs? (A pie chart or bar graph may be of some help.) Do you think further reductions are possible? 4. The quality manager for Muskogee indicated that the external failure costs reported are only the measured costs. He argued that the 20x5 external costs were much higher than those reported and that additional investment ought to be made in control costs. Discuss the validity of his viewpoint. 5. Suppose that the manager of Muskogee received a bonus equal to 10 percent of the quality cost savings each year. Do you think that gainsharing is a good or a bad idea? Discuss the risks of gainsharing.White mountain supply company purchases warehouse shelving for 18,400. Shipping charges were $ 370 and assembly and set up amounted to $575. The shelves are expected to the last nine years and have a scrap value of $800. Use a straight line method of depreciation, answer the questions round your answer to the nearest cent. A- what is the annual depreciation expense in dollars of the shelving?  B-what is the accumulated depreciation in dollars after the third year? C-what is the book value of the shelving in dollars after the fifth year?Best Tractors, Inc. Manufacturers high quality tractors for farmers. On April 1, a merchandizer purchased two tractors, A and B. The cost of unit A was $650, cost of unit B was $625. On April 30, the company hadn't sold the inventory. The net realizable value of unit A was now $685 while the net realizable of unit B was $550. The adjustment associated with the lower of cost and net realizable value on April 30 will be? 1. Debit costs of good sold: 40 Credit inventory: 40 2. Debit inventory: 40 Credit cost of goods sold: 40 3. Debit cost of goods sold: 75 Credit inventory: 75 4. Debit inventory: 75 Credit Cost of Goods Sold: 75
- Which enhancing quality best describes the business scenario below? Target Corporation issues its quarterly (10Q) report immediately after each quarter ends. Home Depot has used straight-line depreciation since it began operations General Mills and Kellogg’s both use the FIFO cost flow assumption Ford Motor Company’s annual reports are audited by certified public accountants.[The following information applies to the questions displayed below] National Retail has two departments, Housewares and Sporting. Indirect expenses for the period follow. Rent Advertising Insurance Total $45,000 25,000 10.000 $80,000 The company occupies 4,000 square feet of a rented building. In prior periods, the company divided the $80,000 of indirect expenses by 4,000 square feet to find an average cost of $20 per square foot, and then allocated indirect expenses to each department based on the square feet it occupied. The company now wants to allocate indirect expenses using the allocation bases shown below. Department Sporting Hotal Square Feet 1,400 2,600 4,000 Value of Insured 40,000 $100,000 Problem 22-2A (Algo) Part 1 Required: 1. Allocate indirect expenses to the two departments using the allocation method used in prior periods. Department Square Footage Sparting TotalThe following information pertains to Beige, Inc., for the current year: Sales $1,000,000 Internal failure costs 150,000 External failure costs 200,000 Appraisal costs 50,000 Prevention costs 30,000 Cost of goods sold 600,000 Which of the following expresses the quality costs as a percentage of sales? (Rounded to two decimal places.) Group of answer choices 4.44% 43.00% 57.22% 19.44%
- On January 2, 2021, Iwilight Hospital purchased a $99, 600 special radiology scanner from Oriole Inc. The scanner had a useful life of 4 years and was estimated to have no disposal value at the end of its useful life. The straight- line method of depreciation is used on this scanner. Annual operating costs with this scanner are $104, 000. Approximately one year later, the hospital is approached by Dyno Technology salesperson, Jacob Cullen, who indicated that purchasing the scanner in 2021 from Oriole Inc. was a mistake. He points out that Dyno has a scanner that will save Twilight Hospital $25,000 a year in operating expenses over its 3-year useful life. Jacob notes that the new scanner will cost $111,000 and has the same capabilities as the scanner purchased last year. The hospital agrees that both scanners are of equal quality. The new scanner will have no disposal value. Jacob agrees to buy the old scanner from Twilight Hospital for $49,500. (a) Prepare an incremental analysis of…Gagnon Company reported the following sales and quality costs for the past four years. Assume that all quality costs are variable and that all changes in the quality cost ratios are due to a quality improvement program. Required: 1. Compute the quality costs for all four years. By how much did net income increase from Year 1 to Year 2 because of quality improvements? From Year 2 to Year 3? From Year 3 to Year 4? 2. The management of Gagnon Company believes it is possible to reduce quality costs to 2.5 percent of sales. Assuming sales will continue at the Year 4 level, calculate the additional profit potential facing Gagnon. Is the expectation of improving quality and reducing costs to 2.5 percent of sales realistic? Explain. 3. Assume that Gagnon produces one type of product, which is sold on a bid basis. In Years 1 and 2, the average bid was 400. In Year 1, total variable costs were 250 per unit. In Year 3, competition forced the bid to drop to 380. Compute the total contribution margin in Year 3 assuming the same quality costs as in Year 1. Now, compute the total contribution margin in Year 3 using the actual quality costs for Year 3. What is the increase in profitability resulting from the quality improvements made from Year 1 to Year 3?A quality control activity analysis indicated the following four activity costs of a hotel. Line Item Description Amount Verifying credit card information $40,000 Customer service training 20,000 Discounting room rates due to poor customer service 16,000 Correcting charges to customer invoices 8,000 Total $84,000 Sales are $750,000 for the year. Prepare a cost of quality report. Round your answers to one decimal place, if necessary. Due to rounding there may be difference of 0.1 Quality CostClassification Quality Cost Percent of TotalQuality Cost Percent ofTotal Sales Prevention $fill in the blank 1 fill in the blank 2% fill in the blank 3% Appraisal fill in the blank 4 fill in the blank 5% fill in the blank 6% Internal failure fill in the blank 7 fill in the blank 8% fill in the blank 9% External failure fill in the blank 10 fill in the blank 11% fill in the blank 12% Totals $fill in the blank 13 fill in the blank 14% fill in the blank 15%…