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gizmo_the_mogwai [7]
1 year ago
6

The three methods used to classify costs into their fixed and variable components includes:.

Business
1 answer:
ANTONII [103]1 year ago
8 0

The three methods used to classify costs into their fixed and variable components include:

  • scatter diagrams
  • high-low method
  • regression analysis

<h3>What is a costs classification?</h3>

This refers to the process of separation of a group of expenses into different categories which are used to bring an management's attention certain costs that are considered more crucial than others, or to engage in financial modeling.

Often time, the purpose of cost classification is to allows the manager control processes and cut costs where needed or send more resources to an area of the process that is lacking.

Furthermore, the cost classification also allows the manage to review reports and advise accounting of needed adjustments in cost classification.

Read more about costs classification

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Weighted Average Cost Flow Method Under Perpetual Inventory System
Fudgin [204]

Answer and Explanation:

The computation of the cost od merchandised sold for each sale and the inventory balance after each sale is presented in the attachment below;

The perpetual inventory is the system which updated the inventory as on a regular basis

While on the other hand,  the weighted average cost method is the method in which the average cost is calculated after each every purchase is made

In the calculation below:

1. The weighted average cost of $30.90 come from

= (Total inventory cost) ÷ (Total quantity)

= ($180,000 + $1,674,000) ÷ (60,000 units)

= $30.90

1. The weighted average cost of $31.60 come from

= (Total inventory cost) ÷ (Total quantity)

= ($463,500 + $674,100) ÷ (36,000 units)

= $31.60

6 0
3 years ago
Ultimately, multinational corporations that pursue an international strategy, their headquarters keep tight control over marketi
emmainna [20.7K]

The answer is true. A multinational corporation is one that exports internationally or offers services to customers or clients in other company. The initial step in most organizations' global development plans is typically an international strategy, which involves exporting or importing goods and services while marketing maintaining a headquarters or offices in their home country.

There is no one method that works for all business ventures that involve global expansion. Multinational corporations may decide to invest more in their target markets as they expand and scale.  Depending on your objectives and business style, expanding your company internationally by marketing takes on numerous forms.

To learn more about multinational corporation , click here.

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5 0
1 year ago
he value of a share of common stock depends on the cash flows it is expected to provide, and those flows consist of two elements
nekit [7.7K]

Answer:

TRUE

Explanation:

Using the Gordon Growth Model,  we can adequately demonstrate that the dividend and price of a share are both components of the cashflow to be considered in share valuation.

Price per share is found to be D(1) / (r - g)  

where:

Do = Dividend now

D1 = Dividend in year 1

g = growth

r = required return

So we see that the market price of a share which determines the market capitalization of a company is predicted by a growth in dividends. So the benefits of holding a share will not only depend on how much the share is sold now as against how much it can be sold in the future (in order to make a gain), but also how much you can be earning until such sale occurs.

3 0
3 years ago
What are four positive aspects of franchising for a business start-up? Why are they important ? .
wel
The primary advantages for most companies entering the realm of franchising are capital, speed of growth, motivated management, and risk reduction
3 0
3 years ago
What is capitol gain?
Triss [41]

Explanation:

  • It is the amount of profit gained by the organization by selling the stock, bond or other real estates.
  • If the value of selling price is higher than the cost price then it means that the capital gain is achieved.
  • The gain amount is calculated by subtracting the higher selling price with the lowest cost price
  • Example of capital assets are: mutual fund, stock, house, land, etc
  • If you achieve a capital gain, then you need to pay tax for it.
5 0
3 years ago
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