What is the margin of safety? What are the three ways it can be expressed?

Q: What is the carryover ratio? What parameters of the base does its value depend on?

A: Carryover Ratio The purpose of measuring the carryover ratio  is to determine the ratio which are…

Q: What is the difference between ER and REA model

A: ER model stands for Entity Relationship model which is a high-level data model. This model defines…

Q: Describe the margin of safety.

A:

Q: What are the advantages and disadvantages of  FIFO?

A: First-in-First-Out:  In First-in-First-Out method, the costs of the initially purchased items are…

Q: analysis? What are identified as possible risks associated with cost

A: Definition: A technique for calculating the costs related to a business prospect or proposal, as…

Q: Jamison Company uses the reciprocal services method to allocate support department costs and has…

A: Under reciprocal method, services provided by one service department to other service department is…

Q: DMJ company's December 31 work sheet for the current period appears below. Unadjusted Adjustments…

A: Net Income refers to the income generated by the firm during the period after paying off its revenue…

Q: What exactly are ESOPs? What are some of its benefits and drawbacks?

A: Introduction: ESOP: Employee stock ownership plan is retirement plans for employees of the company…

Q: Year 2012 2013 2014 2015 60,000 15,000 45,000 6,000 90,000 17,000 67,500 8,500 30,000 7,500 22,500…

A: For every labor dollar spent, the approximate cost per meal  = Salary/Total meals served

Q: Of the 12,000 units produced by Hirofumi Company during April 2022, 10,000 units were sold at P50…

A: Working:  Total variable costs = Materials + Direct labor + Variable factory overhead = P80,000 +…

Q: how much is a good margin of safety percentage?

A: Margin of Safety  Margin of safety is the area between the break even point and maximum sales. This…

Q: Define the term Multiple Peril?

A: Multiple-perilIt is the insurance coverage package for small and commercial businesses. It is the…

Q: What are ESOPs? What are some of their advantages anddisadvantages?

A: ESOP: Employee stock ownership plan is retirement plans for employees of the company wherein the…

Q: What is GAAP and why it is needed?

A: GAAP - Generally Accepted Accounting Principles

Q: What is GAAP and how does it work

A: The accounting is based on various principles that are defined by GAAP or IFRS.

Q: What is the ROE and operating Margin?

A: ROE = Net Income/Shareholders equity In the given case, Shareholders equity is 60 % of the vehicle…

Q: Explain an example how to calculate margin of safety.

A: The margin of Safety: The break-even point reflects the level of sales volume where no profit or…

Q: Describe the potential costs and benefits of LBOs?

A: LBO is the acquisition method where the company used to use the borrowed money in order to acquire…

Q: What is meant by the margin of safety?

A: Break-Even Point: It is the point of sales at which entity neither earns a profit nor suffers a…

Q: What are the two stages in risk assessment?

A: Risk assessment is the process which involves analysis & identification of events that can have…

Q: How useful is cost–benefit analysis?

A: A cost-benefit analysis, commonly known as CBA, is the process of comparing the various projects and…

Q: What are the benefits and drawbacks of FIFO?

A: Introduction: First-in-First-Out:  In First-in-First-Out method, the costs of the initially…

Q: Belowis an income statement for NUBD Company: P 400,000 (120.000) Contribution margin P280,000…

A: Contribution Margin Ratio = Contribution MarginSales × 100 = P280,000P400,000×100 = 70% Break Even…

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit.  Overhead expenses depend upon the nature of the business operations.