Why might it be desirable to operate enterprise funds at a profit?
January 15, 2012
Categories: General Questions
If you had two companies and one of the companies uses the cash basis of accounting, how would that differ from the accrual basis?
Medical Instruments produces a variety of electronic medical devices. Medical Instruments uses a standard cost system and computes price variances at the time of purchase. One product, a thermometer, measures patient temperature orallt. It requires a silver lead with a standard length of 5 inches per thermometer. To make the leads, hollow silver tubing is purchased at a standard price of $4 per inch, cut into the required length, and then assembled into the thermometer.