If a purchasing agent must put up a cash deposit for construction services, for security purposes, instead of giving it directly to the contractor, he or she may insist that it be placed in a(n):

Answers

Answer 1

Answer:

Answer:

Escrow account

Explanation:

An escrow account is a type of account in which a third party helds a certain amount of money while two parties complete a transaction. This is used to protect people from fraud when they are involve in transactions like purchasing a house as both parties can trust that the money is safe and the third party only provides the funds when they agree with everything and are happy with the results.

According to this, the answer is that if a purchasing agent must put up a cash deposit for construction services, for security purposes, instead of giving it directly to the contractor, he or she may insist that it be placed in an escrow account because the money would be safe and it would be maintained by a third party that will provide the funds when the services are complete.

Related Questions

The following work-in-process inventory information is provided for a company: All direct materials are added at the beginning of the production process. Beginning inventory is 70% complete for conversion, and ending inventory is 40% complete for conversion. Units 8,000 Direct Materials Costs $11,000 $74,000 Conversion Costs $29,000 $161,000 Beginning work in process Cost added Ending work in process Units completed/transferred 12,000 33,000 What is the total production cost of the ending work in process using weighted average process costing?

Answers

Answer:

$24129.6

Explanation:

Calculation:

Equivalent units in ending work in process inventory for conversion = 33000+(12000*0.4) = 37800

Cost per equivalent unit (conversion) = 29000+161000/ (37800) = 5. 027

Total production cost of ending inventory = 24129.6

We calculate the equivalent units of production by adding the units transferred and completed, and the equivalent units in the ending inventory, so the equivalent units in ending work in process inventory for conversion becomes 37800.

Then we add the cost of beginning work-in-process for conversion and costs added during the production period for conversion and divide it by equivalent units in in ending work in process inventory for conversion.

After that, we get per unit cost which is then multiplied by the equivalent units in conversion to get total production costs.

Since, the all direct material costs are added in the beginning of the process,we don’t include in the other periods.

The distribution of the amount of money spent by students for textbooks in a semester is approximately normal in shape with a mean of $235 and a standard deviation of $20. According to the standard deviation rule, how much did almost all (99.7%) of the students spend on textbooks in a semester?

Answers

Answer: $295

Explanation:

Given that,

Amount spent by the students is normal in shape

Mean = $235

Standard deviation = $20

99.7% is within 3 standard deviations of the mean:

= Mean + 3 × Standard deviation

= $235 + 3 × $20

= $235 + $60

= $295

The amount of $295 is spent by all the students on textbooks.

SecuriCorp operates a fleet of armored cars that make scheduled pickups and deliveries in the Los Angeles area. The company is implementing an activity-based costing system that has four activity cost pools: Travel, Pickup and Delivery, Customer Service, and Other. The activity measures are miles for the Travel cost pool, number of pickups and deliveries for the Pickup and Delivery cost pool, and number of customers for the Customer Service cost pool. The Other cost pool has no activity measure because it is an organization-sustaining activity. The following costs will be assigned using the activity-based costing system: Driver and guard wages $ 960,000 Vehicle operating expense 390,000 Vehicle depreciation 270,000 Customer representative salaries and expenses 300,000 Office expenses 160,000 Administrative expenses 460,000 Total cost $ 2,540,000 The distribution of resource consumption across the activity cost pools is as follows: Travel Pickup and Delivery Customer Service Other Totals Driver and guard wages 50 % 35 % 10 % 5 % 100 % Vehicle operating expense 70 % 5 % 0 % 25 % 100 % Vehicle depreciation 60 % 15 % 0 % 25 % 100 % Customer representative salaries and expenses 0 % 0 % 90 % 10 % 100 % Office expenses 0 % 20 % 30 % 50 % 100 % Administrative expenses 0 % 5 % 60 % 35 % 100 % Required: Complete the first stage allocations of costs to activity cost pools.

Answers

Answer:

SecuriCorp

The First level Allocations will be:

Of a total cost of $2,540,000

Travel allocated costs is $915,000

Pick Up and Delivery is $451,000

Customer Service is $690,000

Others is $484,000

Explanation:

the next level of allocation will be to determine the cost rate based on the Activity Measures, however these were not provided in the question

Activity Based Costing is a costing technique that allocates costs based on the activity level of certain pre-determined cost drivers.

Instead of taking the pool of costs and dividing it by Volume to arrive at an Average Costs, Activity Based Costing believes all components leading to the cost generated should bear the burden of the cost by determining the Driver rate per activity.

If from the example we have worked above, we are told the number of miles covered is 20,000 miles and the actual Cost we worked out for Travels was $960,000. This implies we have an activity rate of $48 Per mile covered as travels costs.

The same would apply to Customer Services if for example 3,000 customers were attended to in the period, the Rate Per Customer will become $690,000 divided by 3,000 = $230 Per Customer

With these indices, it is easy to then allocate costs on the basis of miles traveled + Customers Attended to etc

Final answer:

To allocate costs to the activity cost pools, multiply the total costs by the resource consumption percentages provided for each activity.

Explanation:

In order to allocate costs to the activity cost pools, we need to use the distribution of resource consumption percentages provided. Let's calculate the cost allocation for each activity cost pool:

Travel cost pool: Multiply total costs by 50% for driver and guard wages, 70% for vehicle operating expense, and 60% for vehicle depreciation.
Pickup and Delivery cost pool: Multiply total costs by 35% for driver and guard wages, 5% for vehicle operating expense, and 15% for vehicle depreciation.
Customer Service cost pool: Multiply total costs by 10% for driver and guard wages, 0% for vehicle operating expense, and 0% for vehicle depreciation, and 90% for customer representative salaries and expenses.
Other cost pool: Multiply total costs by 5% for driver and guard wages, 25% for vehicle operating expense, and 25% for vehicle depreciation, and 10% for customer representative salaries and expenses, and 50% for office expenses, and 35% for administrative expenses.

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Simmons, Inc. uses the lower-of-cost-or-market method to value its inventory that is accounted for using the LIFO method. Data regarding an item in its inventory is as follows: Cost $26 Replacement cost 20 Selling price 30 Cost of completion and disposal 2 Normal profit margin 7 What is the lower-of-cost-or-market for this item?

Answers

Answer:

The lower- of- market- or cost for the item is $21

Explanation:

In the lower of cost or market, the market begins at the replacement cost which is $20, which is then limited or restricted to a ceiling and a floor.

The ceiling is computed as:

Ceiling = Selling price - Completion cost

where

selling price is $30

Completion cost is $2

Putting the values above:

Ceiling = $30 - $2

Ceiling = $28

Computing the floor as:

Floor = Ceiling - Normal profit margin

Floor = $28 - $7

Floor = $21

As the market cannot be lower than the floor which is $21. Therefore, the lower of cost which is $26 and the market which is $21. But have to take lower. So, it is $21.

1. The roles of money Antonio just graduated from college and is now in the market for a new car. He has saved up $4,000 for a down payment. He's deciding between a Super and a Duper. The Super is priced at $23,599, and the Duper is priced at $18,999. After agonizing over the decision, he decides to buy the Duper. He writes the dealership a check for $4,000 and takes out a loan for the remainder of the purchase price.

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Answer:

Explanation:

Antonio used the value of money as a unit of account to compare the value of the two cars namely Super and Duper and come to the conclusion that Duper was cheaper to Super

Antonio saved $ 4000 in his checking account which he gave to the seller. This represent money's role as a store of value

Antonio write a check of the money he saved to the seller and the seller accepted it and gave him the car which fulfill the role of money as a medium of exchange.

ECB Co. has 1.15 million shares outstanding selling at $24 per share. It plans to repurchase 97,000 shares at the market price using its cash reserves. What will be its market capitalization after the repurchase? What will be its stock price?