How can we calculate the net annual sponsor's costs?

Q: How do you calculate contribution margin?

A: The contribution margin can be calculated by deducting the variable cost from the sales revenue.

Q: Contribution margin means

A: In the production there are many types of cost some cost change with volume but some do not change…

Q: Explain what is meant by future deductible amounts. Why is it important to understand this concept?

A: Future deductible amounts refer to the expenses that a business incurs in the current period but…

Q: How I can calculate the gross margin?

A: Gross margin formula Sale-Cost of goods sold

Q: Which of the following costs is a nonlease component for the lessee? Group of answer choices taxes…

A: The objective of the question is to identify which of the given costs is considered a nonlease…

Q: Explain the difference between defined-benefit and defined-contribution plans?

A: Solution:- Pension plans are to provide a security to the retiring employees after their retirement.…

Q: How can we calculate effective rent?

A: In brief, the net effective rent is determined by taking the full concession sum, dividing it by the…

Q: what are the meaning of Revenue Enhancement and Cost Saving ? and I need examples for each.

A: Revenue enhancement is the enhancement or increase in the revenue, which also leads to an increase…

Q: Why is it necessary to determine how long you can expect to reap benefit from the investment?

A: Individuals as well as firms often make investment and specify the time limit for which this…

Q: Explain the Incremental Cost of Refinancing?

A: Answer: If the interest rate on the higher sum of borrowing is greater, then the average cost of…

Q: Describe the two forms that the calculation of the payback period can take?

A: The payback period alludes to what extent it takes for a speculator to hit breakeven to recoup the…

Q: Can we compute the IRR for each option without knowing the revenue figure? Why?

A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…

Q: Does the accrual accounting rate-of-return method consider income earned throughout a project's…

A: The accrual accounting rate-of-return(ARR) formula splits the average income of an asset by the…

Q: Part D of this question asks what the gross profit would be for each plan. I am having trouble…

A: Gross profit is the income earned from an activity after deducting all the direct expenses from…

Q: What is a defined contribution benefit plan and explain the pros and cons

A: There are mainly two retirement plans available : Defined contribution plan and defined benefit…

Q: hat are examples of expenses that require estimates for the future and why do we do this?

A: Expenses An expense is a particular kind of outlay that appears on the income statement and is…

Q: What is interpretation of the usefulness of the contribution margin concept?

A: Contribution margin The additional profit gained for each unit sold is calculated by subtracting the…

Q: Compute the gross profit under each plan

A: This is a follow-up question. we need to compute the gross profit of each plan. The financial data…

Q: How can we determine the amount of a periodic payment?

A: The amount of periodic payment is determined using the following formula:

Q: How can we calculate the net present worth of each payment?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…

Q: How can we calculate ownership (capital) cost, annual operating cost, and equivalent annual cost?

A: Ownership cost is the cost of owning a particular asset/equipment and is usually the purchase price…

Q: How to identify net revenue for the current FY?

A: For identifying the revenue earned during the current year the accrual principle of accounting needs…

Contract Costing

Contract costing is about tracing particular costs related to a particular contract entered into with the customer. It is one of the forms of job order costing. It is useful in long-term contracts at the most. It is seen that substantial time is required for the completion of the contract which takes different accounting periods. Thus, it is very much helpful for recognizing the costs associated with it and accounting in their specific accounting periods.