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kondaur [170]
2 years ago
13

Activity-based costing (ABC) is said to result in improved costing accuracy when compared with traditional costing procedures. B

riefly explain how this improved accuracy is attained.
Business
1 answer:
serious [3.7K]2 years ago
6 0

Activity-based costing systems are greater correct than conventional costing structures. this is because they provide an extra specific breakdown of indirect prices.

Activity-based totally costing offers a greater correct approach to product/carrier costing, main to more accurate pricing decisions. It increases expertise of overheads and price drivers; and makes highly-priced and non-cost including sports greater visible, permitting managers to lessen or dispose of them.

There are pros and cons to both the traditional and the Activity-based costing gadgets. One gain of the ABC gadget is that it provides extra correct records on the charges to manufacture products, but it does not show up on the monetary statements.

The primary purpose of the usage of the activity-primarily based costing method is to increase the profitability and standard performance of a corporation. The Activity-based costing approach does this by identifying correct overhead fees and cost drivers main to extra streamlined enterprise procedures.

Learn more about Activity-based costing here: brainly.com/question/6654166

#SPJ4

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Denise's uncle wants to know how efficiently his firm manages its assets and operations to generate net income. Thus, he has con
Sergeu [11.5K]

Answer:

d. profitability

Explanation:

Profitability ratio tells us about the ability to make income by using assets and operation of the business. It deals with different types of income like Gross income, net income, income before interest and tax. Return on Assets (ROA) is the ration that exact ratio which shows the efficiently his firm manages its assets and operations to generate net income.

5 0
3 years ago
Consider a hypothetical closed economy in which households spend $0.70 of each additional dollar they earn and save the remainin
navik [9.2K]

Answer:

(a) 0.7

(b) 3.33

(c) -$210

(d) -$147

(e) -$1 trillion

Explanation:

(a) Marginal propensity to consume (MPC) = 0.7

(b) Multiplier of this economy:

=\frac{1}{1-MPC}

=\frac{1}{1-0.7}

      = 3.33

(c) Decrease government purchases by $300 billion,

Initial change in consumption = Change in government purchases × MPC

                                                  = $300 × 0.7

                                                  = -$210 billion

(d) This decreases income yet again, causing a second change in consumption equal to:

= Initial change in consumption × MPC

= -$210 × 0.7

= -$147 billion

(e) The total change in demand resulting from the initial change in government spending is:

= Change in government purchases × Multiplier

= $300 × 3.33

= -$1 trillion

7 0
3 years ago
Suppose you have the following information on Sam's budget. Sam has a yearly budget of $2000 to spend on consuming concert ticke
AleksAgata [21]

Answer:

Bundles                           A           B           C           D

Concert Tickets              80         60         20          0

Books                              0          50        150        200

Explanation:

Since each concert ticket costs $25,

  • if Sam spends $2,000 on concert tickets, he will purchase 80 tickets
  • if he spends $1,500 on concert tickets, he will purchase 60 tickets
  • if he spends $500 on concert tickets, he will purchase 20 tickets

Since each concert ticket costs $10,

  • if Sam spends $2,000 on books, he will purchase 200 books
  • if he spends $1,500 on books, he will purchase 150 books
  • if he spends $500 on books, he will purchase 50 books

6 0
3 years ago
On January 2, 2005, Ames Corp. signed an eight-year lease for office space. Ames has the option to renew the lease for an additi
Debora [2.8K]

Answer:

B) $15,000

Explanation:

Even though the leasehold improvements have an estimated useful life of 10 years, Ames should amortize them in 8 years since they are not certain about renewing the lease contract.

amortization per year = $120,000 / 8 = $15,000

Since Ames has only leased the office for one year, then the accumulated amortization should be $15,000

6 0
3 years ago
The cost of resources and using more efficient are two factors that affect the supply of a product
Art [367]

I DONT KNOW DUGHHH ONE TWO THREE OH IT NOT MATH ZOWWRY

6 0
4 years ago
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