All categories

2 years ago

hen using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to:

1 answer:

8 0

When using absorption costing when production is greater than sales, a portion of fixed overhead is allocated to the products sold.

<h3>What happens when production is greater than sales?</h3>

Because it allocates fixed overhead expenses to each unit of a product produced throughout the time, absorption costing differs from variable costing.
Net income recorded under absorption costing will be higher than net income reported under variable costing when production exceeds sales. Closing stocks rise under absorption costs as output outpaces sales.
When output exceeds the number of units sold, absorption costing allocates fixed overhead to the items sold, resulting in net income that is higher than that determined by variable costing.
The operating income under absorption costing is higher when production outpaces sales, i.e. when final inventory exceeds beginning inventory.

To learn more about Absorption costing refer to:

brainly.com/question/13781960

#SPJ4

You might be interested in

From 1970 to 1998 the U.S. dollar a. gained value compared to the German mark because inflation was higher in the U.S. b. gained

yawa3891 [41]

Answer:

lost value compared to the German mark because inflation was lower in Germany

Explanation:

Inflation is a persistent rise in the general price levels

Types of inflation

1. demand pull inflation – this occurs when demand exceeds supply. When demand exceeds supply, prices rise

2. cost push inflation – this occurs when the cost of production increases. This leads to a reduction in supply. Higher prices are the resultant effect

If inflation of the currency of a country increases relative to that of another country, the value of that currency decreases

8 0

3 years ago

Many U.S. millennials live at home longer than young adults in the past partially due to the economic recession. The recession i

Arte-miy333 [17]

Answer:

b. external

Explanation:

When an economical event affects something in an indirect way, it is called an <em>external change</em>. It is expected for the economic recession to affect economic factors of course. However, it is imminent that it affects every-day life among people too. Economic factors directly influence life and habits of the U.S. consumer, as it is common for most economic changes.

5 0

3 years ago

Which of the following is most consistent with a relationship marketing strategy?

aleksklad [387]

Answer:

Option C

Explanation:

Relationship marketing refers to the strategy aimed at encouraging customer satisfaction, communication, and tight-term commitment. It is built to create strong customer relationships by presenting them with content that is specifically relevant to their desires and needs, and by encouraging open lines of communication.

Relationship marketing involves building and preserving interaction with customers over period via online marketing or other techniques which improve their chances of coming back to your company in the future. In particular, regular customers are essential because they are major sources of new clients and reviews and are also inclined to make repeated purchases.

4 0

3 years ago

1a. Suppose that, if their income rises by $100, all households in Normalia raise their spending by $80.

Mila [183]

Answer:

0.2

0.8

2000

Explanation:

Marginal propensity to consume is the proportion of disposable income that is spent on consumption

Marginal propensity to consume = amount consumed / disposable income

Marginal propensity to save is the proportion of disposable income that is saved

Marginal propensity to save = amount saved / disposable income

MPC + MPS = 1

4 0

3 years ago

Beswick widget ltd. sets up a system to monitor unit sales of its products to measure changes taking place in customer tastes an

Vaselesa [24]

The system that Beswick widget ltd is using in means of monitoring unit sales of its production and to measure changes taking place with the taste of the customers is the feedback control. This is a system where it is responsible for examining the order in means of making changes to have an improvement in terms of the efficiency of the output.

7 0

4 years ago