1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
jenyasd209 [6]
2 years ago
7

Why are incidental costs sometimes ignored in inventory costing? Under what accounting constraint is this permitted?

Business
1 answer:
defon2 years ago
4 0

Incidental costs sometimes are ignored in inventory costing because  Incidental expenses are minor, non-budgeted expenses that are not directly related to primary service and do not arise during the normal course.  Incidental cost which include  the costs of transportation, meals, and lodging are common when an employee travels for business Inventory costs.

By calculating the most economic order quantity the firm attempts to determine the order size that will minimize the total inventory. Such practice of ignoring the incidental cost is permitted by materiality constraint because such cost will not affect the decisions of the business entity costs.

Materiality constraint means that transactions of little importance should not be recorded. A transaction may be recorded, but its importance and significance should be kept in mind. For example, a newly purchased pencil is an asset of the business. Whenever the pencil is used, a part of the asset is consumed.

TO learn more about  Incidental costs and Materiality constraint here

brainly.com/question/28178996

#SPJ4

You might be interested in
The Tree Top Airline​ (TTA) is a small​ feeder-freight line started with very limited capital to serve the independent petroleum
nikitadnepr [17]

Answer:

To make it feasible it will need to operate 7 or more planes.

Explanation:

450,000 maintenance facility

useful life of 15 year

salvage value of 100,000

<u>saving cost per plane:</u>

third party cost - own facility cost = cost savings

           35,000  -          25,000      =    10,000

present value of the salvage value: (present value of a lump sum)

\frac{salvage }{(1 + rate)^{time} } = PV  

salvage $ 100,000

time  15 years

Minimum accepter rate of return: 0.12000

\frac{100000}{(1 + 0.12)^{15} } = PV  

PV   18,269.6261

present worth of the facility:

450,000- 18,268.63 = 431,731.37

Now we determinate the PMT over a 15 years period to know the cost savings per year to justify the facility:

PV \div \frac{1-(1+r)^{-time} }{rate} = C\\

PV 431,731

time 15

rate 0.12

431731.37 \div \frac{1-(1+0.12)^{-15} }{0.12} = C\\

C  $ 63,388.630

As each plane cost savings are 10,000

63,388.62  / 10,000 = 6.39

the company will need to operate 7 or more planes.

3 0
3 years ago
Assume that we are back to talking about bags of oranges (a private good), but that the government has decided that tossed orang
ruslelena [56]

Answer:

If negative externalities pop up in a market, the equilibrium is higher than the efficient output.

Thus when it comes to the government rectification regarding the side effects of that commercial , activity, if the amount of bags is (1) then the new equilibrium would be: <em>p*= $17</em>

8 0
3 years ago
What are the criticisms of fiscal policy
vesna_86 [32]

Answer:

Fiscal policy is the adjustment of tax rate and government spending that is used to handle current economic situation.

There are several of criticism that usually found on fiscal policies.

- Time Lags.

The effect of fiscal policies could only be felt years after the policies are made. Often times, this goes unnoticed by the citizens of the country, making it look like that the government took no action to handle their economic issues.

- Strengthening foreign influence

One of the things that the government can do to reduce the inflation is by selling government bonds to the public. These bonds can be bought by companies from another countries. This will strengthen that country's influence over US economy.

- It could create a budget deficit for the next government officials.

Government in United States were reshuffled between 2-4 years. While the effect of fiscal policies could need more than 10 years before it actually can be felt.  Sometimes, fiscal policies taken by previous government could create a deficit that had to be handled by the next government after the election.

4 0
3 years ago
The economy is in a recession and the government wants to increase output. If the multiplier equals 3 and the government increas
Anika [276]

Answer:

The correct answer is option D.

Explanation:

Because of recession the government wants to increase output.

The increase in government spending is equal to $250.

The size of the money multiplier is 3.

The increase in output will be

== government\ spending\ multiplier\times increase\ in\ spending

=250\ \times\ 3

=750

So, the correct answer is option D.

8 0
3 years ago
The government sector get its income mostly from exports to other countries.
barxatty [35]

Answer:

False

Explanation:

The government sector derives its main incomes from taxes.

3 0
3 years ago
Other questions:
  • Steve wants to use Google Display Ads to reach new customers who are looking to purchase products similar to his. Which audience
    9·1 answer
  • Before buying an existing business, you need to identify if the business’s problems can be fixed? true or false
    8·2 answers
  • Increasing the number of tasks an individual performs on the job is called:
    6·1 answer
  • There would be other changes, too. The "cola wars" were escalating [in the 50s and 60s], and there was a new, all powerful weapo
    12·1 answer
  • A simple economy produces two goods, Corn BreadCorn Bread and SoftwareSoftware.Price and quantity data are as follows:
    12·1 answer
  • Metal Manufacturing has isolated four alternatives for meeting its need for increased production capacity. The following table s
    11·1 answer
  • Major Manuscripts, Inc.
    14·1 answer
  • What is the difference between the turbo button and the victim button
    8·1 answer
  • The income statement of Kimbrough Community Clinic for the year ended December 31, 2017, is provided below.
    12·1 answer
  • Legal Services pays half of the price for a shipment of computers that remain with the seller, Digital Computers, Inc. Within te
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!