ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.30 : A biochemical engineering sales contract adopts Cost Recovery Method in its company accounting. Gross profit is realised only when cash collections exceed the total cost of goods sold. Let Y = Original Cost Recovered, Z = Gross Profit Realised. Its property was sold at A = $500k with cost of B = $300k. Its engineering accountant receives cash of C = $240k in first year, D = $180k in second year and E in third year. (a) Find the values of Y and Z in : (i) first year; (ii) second year; (iii) third year. (b) What is the exact value of E if all cash has been fully received from sales?



ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.30 : A biochemical engineering sales contract adop..

Answer / kangchuentat

ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.30 : (a)(i) First year : Y = C = $240k, Z = 0 (since C < B). (ii) Second year : Y = B - C = $300k - $240k = $60k, Z = C + D - B = $240k + $180k - $300k = $120k [ since (C + D) > B ]. (iii) Third year : Y = 0, Z = E. (b) E = A - C - D = $500k - $240k - $180k = $80k. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.

Is This Answer Correct ?    0 Yes 0 No

Post New Answer

More Chemical Engineering Interview Questions

colour of flame is blue as well red. why?

1 Answers   Oxford,


Dear guys we adding hypo at climax plant and that water is inlet to DM plant so with hypo water that can affect my resins of cation and anion. if it is affect life of my anion and cation so what kind of steps should be take.

0 Answers   Hindustan Unilever Limited,


how to convert Nm3/hr to Kg/hr for air, @ 10.4 kg/cm2.g dischare pressure, does density doesn't affect on calculation?

1 Answers  


What are flameless oxidizers?

0 Answers  


Question 110 - When an algebraic product is defined on the space, the Lie bracket is the commutator [x,y] = xy - yx according to Lie algebra in mathematics. If [p,x] f(x) = px f(x) - xp f(x), p = -ih d / dx, find the value of [p,x] in term of i and h.

1 Answers  






At what temperature is glass fused to steel in the making of glass-lined equipment?

0 Answers  


While there, are many tests available to detect leaks on vessels, is there a technology available to quantify the leak, or measure the flow through a leak?

0 Answers  


What is the ignition temp. of Alluminium,Coper&Iron.

0 Answers  


What are the advantages and disadvantages of using gear pumps?

0 Answers  


What are the apt definitions for apparent power, active power and reactive power?

0 Answers  


ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.27 : A biochemical engineering consultancy applies construction accounting in its finance. Its project began on 1 January 2010. Total revenue generated from the project was $9000. On 1 January 2011 as the budget, $2000 had been spent, with $6000 expected. However, the project cost increased latter, causing deviation from its initial budget on 1 January 2012, where $7000 had been spent, with $1400 expected. Let (estimated total cost) = (spent cost) + (expected cost to be spent), (percentage completion) = 100 (spent cost) / (estimated total costs), (total expected profits) = (total revenue) - (estimated total costs). Calculate : (a) total expected profits on 1 January 2011 and 1 January 2012; (b) estimated total cost as and not as the budget; (c) percentage completion of the project since the project began, in the first and second years.

1 Answers  


white rust formation over zinc plated and yellow passivated fasteners during CED painting. WHY?

0 Answers   Wheels India,


Categories
  • Civil Engineering Interview Questions Civil Engineering (5085)
  • Mechanical Engineering Interview Questions Mechanical Engineering (4452)
  • Electrical Engineering Interview Questions Electrical Engineering (16636)
  • Electronics Communications Interview Questions Electronics Communications (3918)
  • Chemical Engineering Interview Questions Chemical Engineering (1095)
  • Aeronautical Engineering Interview Questions Aeronautical Engineering (239)
  • Bio Engineering Interview Questions Bio Engineering (96)
  • Metallurgy Interview Questions Metallurgy (361)
  • Industrial Engineering Interview Questions Industrial Engineering (259)
  • Instrumentation Interview Questions Instrumentation (3014)
  • Automobile Engineering Interview Questions Automobile Engineering (332)
  • Mechatronics Engineering Interview Questions Mechatronics Engineering (97)
  • Marine Engineering Interview Questions Marine Engineering (124)
  • Power Plant Engineering Interview Questions Power Plant Engineering (172)
  • Textile Engineering Interview Questions Textile Engineering (575)
  • Production Engineering Interview Questions Production Engineering (25)
  • Satellite Systems Engineering Interview Questions Satellite Systems Engineering (106)
  • Engineering AllOther Interview Questions Engineering AllOther (1379)