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jenyasd209 [6]
1 year ago
7

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

Business
1 answer:
defon1 year 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

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In order to achieve a competitive advantage, Coastal Haven Hotels, a chain of luxury beach resorts, wants to increase its market
Anna11 [10]

Answer:

The correct answer is b. Take advantage of economies of scale and scope by opening a chain of lower priced economy hotels that leverage the Coastal Haven brand image.

Explanation:

The economy of scale refers to the power that a company has when it reaches an optimum level of production to produce more at a lower cost, that is, as production in a company grows, its costs per unit produced are reduced. The more it produces, the less it costs to produce each unit.

In other words, it means that if in a production function the quantity of all inputs used is increased by one percentage, the output produced can increase by that same percentage or increase by greater or lesser amount than the same percentage. If it increases by the same percentage, we would be faced with constant economies of scale, if it were in more, they would be growing economies of scale, if it were in less, in decreasing economies of scale.

In microeconomics, economy of scale is understood as the advantages in terms of costs that a company obtains thanks to the expansion and good synergies that it has applied to its competitive environment .

The concept of "economies of scale" serves for the long term, and refers to reductions in unit cost as the size of an installation and the levels of input utilization increase. The usual sources of economies of scale are the inventory (large-scale purchase of materials through long-term contracts), management and logistics (increasing the specialization of managers), financial (obtaining lower interest costs in bank financing), marketing and technology (benefiting of the scale yields in the production function).

8 0
2 years ago
Curly just graduated from State U and has three job offers: teaching at a prestigious private high school nine months a year wit
Alexus [3.1K]

Answer:

The annual salary for each of these offers is probably:

lowest at the high school

in the middle at the bank

highest at the investment firm.

4 0
2 years ago
Read 2 more answers
A merger where one company purchases another as a way to reduce competition, is an example of a type of market activity that gov
DIA [1.3K]

Answer:

B) antitrust laws

Explanation:

Antitrust laws refer to the laws with respect to the competition and it is established by the U.S government. The motive of this to secure the consumers from that business practices who are dealing in predatory and if this law does not exist then the consumers would not gain i.e from the competition arise in the market place

Therefore according to the given situation, when the government passes the law against so this reflect the antitrust laws

6 0
3 years ago
When there is a shortage, rationing is a method of distributing goods by using prices.
Cerrena [4.2K]
True, rationing is the selling of scarce goods or services in events such as war. Items are distributed in fairness to each citizen and they have to take a ration book to say what they have or haven't had and how much of it they have had.
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3 years ago
Which one of the following is not something that shapes the fundamental character of a company's corporate culture?
Mamont248 [21]

Answer:

A. The nature and character of the actions the company is taking to improve the performance of its value chain activities

Explanation:

The corporate culture of a company is essential for a company to be well positioned in the market.

It is defined as the set of guidelines that will guide the behavior of the employees of an organization, therefore it is composed of the set of policies, rules, procedures, behaviors, values, etc., that bring identity to a company and helps the practice of ethical values ​​and promotion development of each employee.

Therefore, all the alternatives in the question above are adequate to the organizational culture, except for the letter A, which corresponds to the nature and character of the actions that the company is taking to improve the performance of its value chain activities, since the management of the supply chain A company's value will improve the way the processes in the organization are carried out to generate value for the customer.

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