As a young boy, drew remembers his grandfather telling him, "son, if you can find something you like to do, and somebody is willing to pay you to do it, well, that's the secret to a great life." The way Drew saw it, this was his big break. For the past five years, he split his time between school and working for a local tree farm/nursery business. The owner recently announced he was ready to retire. As Drew began creating a business plan, he contemplated what the business might be worth. How much will he need to buy this business? for starters, drew:
a) needs to find a government data base that outlines what nursery businesses are worth, on average, across the country.
b) should speak with the current owner and determine the total value of assets (what the business owns), its earning potential, and its unique advantage.
c) will want to determine the assessed value of the acreage that the business owns, and then bid competitively.
d) needs to understand that it's difficult to buy an existing business, rather than start your own. the key will be to meet with the company's accountant, and explain your interest. the accountant will have all the answers.
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Doogan corporation makes a product with the following standard costs: standard quantity or hours standard price or rate direct materials 2.0 grams $ 7.00 per gram direct labor 1.6 hours $ 12.00 per hour variable overhead 1.6 hours $ 6.00 per hour the company produced 5,000 units in january using 10,340 grams of direct material and 2,320 direct labor-hours. during the month, the company purchased 10,910 grams of the direct material at $7.30 per gram. the actual direct labor rate was $12.85 per hour and the actual variable overhead rate was $5.80 per hour. the company applies variable overhead on the basis of direct labor-hours. the direct materials purchases variance is computed when the materials are purchased. the materials quantity variance for january is:
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As a young boy, drew remembers his grandfather telling him, "son, if you can find something you like...
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