Answer:
The answer is that the net income under absorption costing would be higher than the net income under variable costing.
Explanation:
Absorption costing and variable costing are terms used in accounting contexts. Absorption costing, also known as full costing, incurs overhead costs when the product is sold; not before it. Variable costing, also referred to as direct costing, would include overhead costs during the period the costs occurred. In this condition, net income would be higher using absorption since overhead costs would not be included until the product is sold.
Answer:
<h2>In this case,the answer would be option D. or It can be a source of competitive advantage for a period of time.</h2>
Explanation:
- In Production Economics,any organizational input in the production process can provide competitive advantage to any firm or company for a sustainable period of time only if it provides commercial or economic value to the firm or company,it is unique and it cannot be completely imitable or substituted through other equivalent resource/s by other market competitors.
- Therefore,if any organization resource or input is easily imitated then it cannot ensure long term or sustainable competitive advantage for any firm or company in the market.
- However,it can provide some temporary market advantage or competitive edge to any particular firm or company until the time it is fully imitated and implemented by its competitors or rivals.
Answer:
![\left[\begin{array}{cccccc}&Cost&Assembly&Setting Up&Other&Total\\wages&349,000&226,850&69,800&52,350&349,000\\Depreciation&290,000&101,500&58,000&130,500&290,000&Utilities&199,000&29,850&149,250&19,900&199,000&Total&838,000&358,200&277,050&202,750&838,000&\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bcccccc%7D%26Cost%26Assembly%26Setting%20Up%26Other%26Total%5C%5Cwages%26349%2C000%26226%2C850%2669%2C800%2652%2C350%26349%2C000%5C%5CDepreciation%26290%2C000%26101%2C500%2658%2C000%26130%2C500%26290%2C000%26Utilities%26199%2C000%2629%2C850%26149%2C250%2619%2C900%26199%2C000%26Total%26838%2C000%26358%2C200%26277%2C050%26202%2C750%26838%2C000%26%5Cend%7Barray%7D%5Cright%5D)
Explanation:
We mulitply each line by the stated percent of each activity
<u>for example</u>
Setting Up % x Utilities= Utilities cost assigned to setting up
199,000x 75% = 149,250
Assembly % Depreciation= Depreciation cost assigned to assembly
35% x 290,000 = 101,500
This process must be done to assign each portion of cost.
Answer:
$162,000
Explanation:
The amount of cost of goods manufactured is computed as
= Labor cost + Direct materials purchased + overhead costs - ending balance of materials - ending balance of work in process
= $57,000 + $25,000 + $88,000 - $3,000 - $5,000
= $162,000
Hence, the cost of goods manufactured is $162,000
Answer:
A trade off or it may be D opportunity at the maegin
