The Cost of Improving the Office Layout Is $27,000 to Be

question 63

Essay

The cost of improving the office layout is $27,000 to be treated as a one-time expense.The office manager does not have any way of estimating improved profits resulting from quality changes but says that the new layout will save time and miles of walking for the 40 office employees.She estimates that the new layout will cut the amount of walking for the average employee by 100 miles per year.How much will the layout improvement be worth?

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Definitions:

Journal Entries

Records of financial transactions in the double-entry bookkeeping system, noting debits and credits for each transaction.

Work in Process

Inventory representing goods that are in the production process but not yet completed.

Finished Goods

Merchandise ready for retail, having gone through the manufacturing stage.

Raw Materials

Basic substances in their natural, modified, or semi-processed states, used as inputs to a production process for manufacturing goods.