In 2007 Terry Brady, the legendary athlete from Indiana, decided to leave his job as head football coach at Mattoon High School to open Brady Advantage, his own sporting goods store, in Terre Haute. By locating Brady Advantage halfway between St. Louis and Indianapolis, Brady hoped to attract customers from both large metropolitan markets. A partial income statement for Brady Advantage follows: 2007 Revenues Revenue from sales of goods and services Operating costs and expenses Costs of products and services sold Selling expenses Administrative expenses Total Operating Costs & Expenses Income from operations Interest expense (bank loan) Non-recurring expenses to start business Income taxes Net income $210,000 $82,000 $6,000 $12,000 $100,000 $110,000 $14,000 $8,000 $16,000 $72,000 Terry Brady's coaching job at Mattoon High paid $45,000 of annual salary and benefits. To get the sporting goods store opened, Brady used S50,000 of his personal savings, which wasearning a guaranteed 12 percent annual rate of return. Brady opened his store in a building that he owned in Terre Haute. Prior to opening his store, the building was rented for $24,000 per year. of total explicit costs In 2007, Brady Advantage incurs $ for using market-supplied resources. In 2007, the opportunity cost of Brady's equity capital is $ The total implicit cost of using owner-supplied resources in 2007 is a. b. c. The total opportunity cost of resources used by Brady Advantage in 2007 is 24 d. The total economic cost in 2007 is $ The accounting profit for Brady Advantage in 2007 is S e. ActivateM To Settin
In 2007 Terry Brady, the legendary athlete from Indiana, decided to leave his job as head football coach at Mattoon High School to open Brady Advantage, his own sporting goods store, in Terre Haute. By locating Brady Advantage halfway between St. Louis and Indianapolis, Brady hoped to attract customers from both large metropolitan markets. A partial income statement for Brady Advantage follows: 2007 Revenues Revenue from sales of goods and services Operating costs and expenses Costs of products and services sold Selling expenses Administrative expenses Total Operating Costs & Expenses Income from operations Interest expense (bank loan) Non-recurring expenses to start business Income taxes Net income $210,000 $82,000 $6,000 $12,000 $100,000 $110,000 $14,000 $8,000 $16,000 $72,000 Terry Brady's coaching job at Mattoon High paid $45,000 of annual salary and benefits. To get the sporting goods store opened, Brady used S50,000 of his personal savings, which wasearning a guaranteed 12 percent annual rate of return. Brady opened his store in a building that he owned in Terre Haute. Prior to opening his store, the building was rented for $24,000 per year. of total explicit costs In 2007, Brady Advantage incurs $ for using market-supplied resources. In 2007, the opportunity cost of Brady's equity capital is $ The total implicit cost of using owner-supplied resources in 2007 is a. b. c. The total opportunity cost of resources used by Brady Advantage in 2007 is 24 d. The total economic cost in 2007 is $ The accounting profit for Brady Advantage in 2007 is S e. ActivateM To Settin
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Transcribed Image Text:In 2007 Terry Brady, the legendary athlete from Indiana, decided to leave his job
as head football coach at Mattoon High School to open Brady Advantage, his own
sporting goods store, in Terre Haute. By locating Brady Advantage halfway
between St. Louis and Indianapolis, Brady hoped to attract customers from both
large metropolitan markets. A partial income statement for Brady Advantage
follows:
2007
Revenues
Revenue from sales of goods and services
Operating costs and expenses
Costs of products and services sold
Selling expenses
Administrative expenses
Total Operating Costs & Expenses
Income from operations
Interest expense (bank loan)
Non-recurring expenses to start business
Income taxes
Net income
$210,000
$82,000
$6,000
$12,000
$100,00O
$110,000
$14,000
$8,000
$16,000
$72,000
Terry Brady's coaching job at Mattoon High paid $45,000 of annual salary and
benefits. To get the sportiag goods store opened, Brady used $50,000 of his
personal savings, which was earning a guaranteed 12 percent annual rate of return.
Brady opened his store in a building that he owned in Terre Haute. Prior to opening
his store, the building was rented for $24,000 per year.
In 2007, Brady Advantage incurs $
for using market-supplied resources.
of total explicit costs
a.
In 2007, the opportunity cost of Brady's equity capital is $
The total implicit cost of using owner-supplied resources in 2007 is
c.
The total opportunity cost of resources used by Brady Advantage in 2007 is
The total economic cost in 2007 is $
d.
Activate Windows
Go to Settinsto setivate
The accounting profit for Brady Advantage in 2007 is $
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