iam has been compiling year-end financial data for the painting business where he works. The company specializes in the painting of both residential and commercial properties. William would like to determine what division is more profitable for the company so that the company can shift costs appropriately. William used activity-based costing based on support costs to allocate the Manufacturing Overhead (MOH) costs. He performed calculations and allocations and determined the following division information Sales Direct Cost of Services Facility Costs Management Support Administrative Support Misc. Expenses Residential $175500 $70500 $10500 $30150 $22500 $7000 Commercial $257500 $126500 $22500 $49500 $32900 $7750 Based upon the information provided by William, use vertical analysis to determine which division is using support costs more effectively as a percentage of sales O The residential division, as it is using 2.00% less support cost than the commercial division O The residential division, as it is using 0.85% more support cost than the commercial division O The residential division, as it is using 2.00% more support cost than the commercial division O The residential division, as it is using 0.85% less support cost than the commercial division

Q: Define Refund Liability.

A: Refund liability: When a company sells its products with a right of return to customers it has to…

Q: What is Balanace of Payment

A: Balance of Payment is a statement of monetary transactions made and records  between residents of a…

Q: What is make-whole provision?

A: A call provision helps the issuer of the bond to call back or repurchase the bond at any time before…

Q: Classify the Costs for Financial Statements?

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: What is agency promblem in financial terms?

A: Agency problem is the conflict arises in the interest inherent in any relationship, in which one…

Q: Define goodwill for accounting purposes

A: When one firm is acquired by another, an intangible asset known as goodwill is transferred together…

Q: Define warehouse receipt financing

A: A warehouse receipt is a document of proof about the ownership of goods kept in that warehouse.

Q: Define acquiring company

A: The acquisition means when one company buys the more than 51% stake in another company. Companies…

Q: erecognition of Provision PAS 37

A: Definition IAS 37 Provisions, Contingent Liabilities and Contingent Assets outlines the accounting…

Q: Difference of Perpetual and Peiodic

A: Perpetual:-It is the inventory management system that keeps the record of the inventory in…

Q: Define accrued liability

A: Accrued Liability is an expense that was incurred before the end of the current period but has not…

Q: Define disbursement float

A: Disbursement float is a technique by which entity manages the cash as when a firm disburses the…

Q: Define copyright

A: Definition:   Intangible assets: These are the long-term assets that are not physical in nature, but…

Q: major disclosure requirements  for revenue accounts, capital. assets and liabilities

A: ANSWER:-   For revenue accounts, companies typically need to disclose the amount of revenue…

Q: Mutual agency is defined

A: In a partnership, two or more parties agree to operate and manage a business and share the profits…

Q: Define net pay.

A: Payroll: Payroll refers to the total amount that is required to be paid by the company to its…

Q: Explain Bill-and-hold concept.

A:

Q: What is a functional expense statement?

A: The answer is explained as follows:

Q: Define Proprietorship

A: A form of an organization where a single person is the owner and controller of the business is known…

Q: Describe presentation and disclosure regarding revenue.

A: The core principle of IFRS 15 is that revenue is recognised when the goods or services are…

Q: Definitions of Common Income and Expense Items

A: Common Income can have following definitions: Common income is the excess of revenue over costs for…

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.