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2 years ago

Why is cvp analysis more difficult when using absorption costing than when using variable costing?.

1 answer:

4 0

CVP analysis is more difficult because its requires costs to be broken down between variable and fixed which is not done in absorption costing.

<h3>What is a CVP analysis?</h3>

This is an analysis that find out how changes in the firm's variable and fixed costs affect the firm's profit.

Hence, the analysis is difficult when using absorption costing than when using variable costing because its requires costs to be broken down between variable and fixed which is not done in absorption costing.

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A letter provided by the tenant to the landlord, which assures that their lease is binding, accurate, and being paid upon, is kn

olga_2 [115]

A letter provided by the tenant to the landlord, which assures that their lease is binding, accurate, and being paid upon, is known as an estoppel letter.

Letters have long been an essential supply of biographical information, and an effective device for historians of all kinds. They permit the reader to peek backstage and might offer a feel of intimate expertise of historic subjects, even supposing this intimacy is borrowed or stolen.

Informal letters are non-public letters that might be written to allow your buddies or own circle of relatives to realize approximately what goes on in your lifestyle and to bring your regards. A casual letter is typically written to an own circle of relatives member, a near acquaintance, or a friend. The language utilized in a casual letter is informal and non-public.

A letter is stated to be casual while it's far written in a pleasant way, to a person you're acquainted with. Formal letters are written for reputable or expert communication. On the opposite hand, casual letters are used for informal or non-public communication. There is a way prescribed for writing formal letters.

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7 0

9 months ago

It costs firm A $800 to produce five radios and it costs firm B $500 to produce five batteries. If Firm A merges with firm B, it

Zigmanuir [339]

Answer: b. Economies of Scope

Explanation:

Economies of Scope refers to a situation where a company is able to reduce the cost of producing two or more goods by combining their production thereby leading to savings in the production process.

Economies of Scope in effect points out that there are some goods that when produced in tandem with another, lead to a cost reduction which means that its savings is <em>based on variety</em>.

Goods that usually achieve Economies of Scope are goods that are compliments, produced by similar methods or use similar inputs for production.

Firm A merging with Firm B produced the 5 radios and batteries cheaper so the new company is experiencing Economies of Scope.

5 0

3 years ago

Elston Company compiled the following information as of December 31, 2014:Service Revenue $700,000Common Stock $150,000Equipment

Elden [556K]

Answer:

The Elston's stockholders' equity on December 31, 2014 is $550,000

Explanation:

For computing the stockholder equity, first, we have to find out the ending retained earning balance which equals to

= Beginning retained earning balance + Net income - dividend paid

= $375,000 + $75,000 - $50,000

= $400,000

where,

Net income = Service revenue - operating expenses

= $700,000 - $625,000

= $75,000

Now the stockholder equity equals to

= Common stock + ending balance of retained earning

= $150,000 + $400,000

= $550,000

6 0

2 years ago

In an automobile manufacturing plant, the assembly-line workers are classified as.

posledela

In an automobile manufacturing plant, the assembly-line workers are considered to be direct labor cost.

<h3>Direct labor cost</h3>

Direct labor cost is wages that are incurred in order to produce goods or provide services to customers. The total amount of direct labor cost is much more than wages paid. It is assigned to a particular work order, or provision of a service.

It also includes the payroll taxes associated with those wages, plus the cost of company-paid medical insurance, life insurance.

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6 0

2 years ago

Coffman Company sold bonds with a face value of $1,080,000 for $1,020,000. The bonds have a coupon rate of 9 percent, mature in

Neko [114]

Answer:

Coffman Company

Journal Entries:

January 1 - Sale of Bonds

Debit Cash Account with $1,020,000

Debit Bonds Discount with $60,000

Credit Bonds Payable with $1,080,000

To record the sale of 9% bonds at a discount.

June 30:

Debit Interest on Bonds with $48,600

Credit Cash Account with $48,600

To record payment of interest on June 30.

Explanation:

1. Bonds as a financing source can be issued at par value, premium, or discount. It is issued at a discount when the interest rate is less than the market rate. The purpose of issuing them at a discount is to attract investors to purchase the bonds, which will be repaid at the par value.

2. Interest for the half-year was calculated as follows: $1,080,000 x 9%/2 since the interest is payable semiannually. This implies that the effective semiannual interest rate is 4.5%.

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3 years ago