Electricity consumed in the manufacturing process is inventoriable cost per unit using variable costing.
Variable costing is that concept which is used in managerial and cost accounting. In this type of costing the fixed manufacturing overhead is excluded from the product-cost of production.
The method contrasts with absorption costing, in which the fixed manufacturing overheads are allocated to products which are produced. In accounting frameworks such as GAAP and IFRS, variable costing cannot be used in financial reporting.
Although accounting frameworks such as GAAP and IFRS prohibits the use of variable costing in financial reporting, this costing method is commonly used by managers.
To know more about variable costing here:
brainly.com/question/27853679
#SPJ4
Answer:
C. Yes. If repair rates are higher for planes that have been resold, this would be an indication of a lemons problem
Explanation:
Lemons problem is an issue of quality of product, asset, investment : due to asymetric information about the respective quality.
Asymetric Information is when one one party in transaction has more knowledge about the quality of product or asset, than the other party.
Second hand goods are an illustration of this case, as seller has more information about the real quality of good or asset than buyer.
Lemon's problem in single engines airplanes : can be analysed by concept of second hand goods 'asymetric information, lemons problem' it. If the 2nd hand resold planes require higher repairs, it indicates that the buyer had asymetric information about bad quality of planes ( the information which seller had), but realisation of bad quality later implies higher repairs.
Answer:
Explanation:
S/No Date Transaction Dr($) Cr($)
1 Oct.1 Rent Expense 3,600
Cash 3,600
2. Oct.3 Advert. Expenses 1,200
Cash 1,200
3. Oct.5 Supplies 750
Cash 750
4 Oct.6 Office equipment 8000
Accounts Payable 8,000
5 Oct.10 Cash 1 4,800
Accounts receivable 14,800
6 Oct.15 Accounts payable 7,110
Cash 7,110
7. Oct.27 Miscellaneous 400
Cash 400
8 Oct.30 Utilities Expenses 250
Cash 250
9 Oct 31 Accounts receivable 33,100
Fees earned 33,100
10 Oct.31 Utility Expense 1,050
Cash 1050
11 Oct.31 Drawings 2,500
Cash 2,500
Answer:
A. finance
Explanation:
Finance is the section of business that deals with money. Raising capital through various methods would fall under the finance part of the business.
Finance is among the functional areas of a business. It involves sourcing and allocating money to other areas of the business. Finance is closely associated with accounting. Other functional areas of a business include marketing, human resources, administration, and production.
Answer and Explanation:
The preparation of the income statement is presented below:
<u>Particulars Amount </u>
Revenue $160,000
Less:
Rental Costs $30,000
Variable Costs $50,000
Depreciation $10,000
Profit before tax $70,000
Tax at 35% -$24,500
Net Income $45,500
Hence, the net income is $45,500
