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1 year ago

When sales exceed production, the net operating income reported under variable costing generally will be:_____.

1 answer:

6 0

When sales exceed production, the net operating income reported under variable costing generally will be greater than the net operating income reported under absorption costing.

Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.

Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.

Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.

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Bumek [7]

Answer:

facing the speaker and maintaining eye contact

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2 years ago

On December 31, 2020, Wayne, Inc. sold $4,000,000 (face value) of bonds. The bonds are dated December 30, 2020, pay interest ann

Andreas93 [3]

Answer:

Wayne, Inc.

1. The stated interest rate for this bond issue is:

= 8%.

2. The market interest rate for this bond issue is:

= 9%.

3. The selling price of the bonds as a percentage of the face value is 97.5% ($3,900,000/$4,000,000 * 100)

4. Journal Entry to record the sale of the bond issue on December 31, 2020:

December 31, 2020:

Debit Cash $3,900,000

Debit Bonds Discounts $100,000

Credit Bonds Payable $4,000,000

To record the bonds proceeds, discounts, and liability.

5. December 31, 2021:

Debit Bonds Interest Expense $351,000

Credit Bonds Amortization $31,000

Credit Cash $320,000

To record the first payment of interest and amortization.

Explanation:

a) Data and Calculations:

Face value of bonds = $4,000,000

Bonds price = $3,900,000

Discount = $100,000

December 31, 2021:

Interest expense = $351,000

Market interest rate = $351,000/$3,900,000 * 100 = 9%

Cash payment = $320,000

Coupon interest rate = $320,000/$4,000,000 * 100 = 8%

7 0

3 years ago

True/False

Elanso [62]

The answer is FALSE.

Relationship marketing is much important compared to maintaining databases of customer's information for mass marketing. A good relationship to clients can be a good promotion tool and technique compared to sending them promotional ads via email, SMS and social media sites. A word of a mouth is more powerful and personal compared to digital media. If the reputation of the company is good to some clients, then it will create good impression to other potential clients and to the people they know. If the company has a good impression, good attitude employees with good products, it will surely help to the company's revenue.

5 0

3 years ago

9.To what part of an industry does a worker's education contribute?

laiz [17]

Answer:

human capital

Explanation:

Human capital is the economic value brought by workers' experience and skills. It is the attributes, abilities, and quality of labor to influence a firm's productivity. Human capital is enhanced through education, training, and work experiences.

Human capital is an intangible asset to a business. Human capital is a critical element if a business is to achieve its goals. Due to this reason, companies are always investing in improving the quality of their human capital.

4 0

3 years ago

You are the manager of a firm that produces output in two plants. The demand for your firm's product is P = 78 − 15Q, where Q =

Leona [35]

Answer:

correct option is B. 40.5

Explanation:

given data

P = 78 - 15 Q

Q = Q1 + Q2

MC1 = 3Q1

MC2 = 2Q2

to find out

What price should be charged to maximize profits

solution

we get here first total revenue and marginal revenue that is

total revenue TR = P × Q .......1

total revenue TR = 78Q - 15Q²

and

marginal revenue MR = $\frac{change\ in\ TR}{change\ in\ Q}$

marginal revenue MR = 78 - 30Q

now we get here

marginal revenue MR = MC1 = MC2

put here value

78 - 30Q1 - 30Q2 = 3 Q1 or 33 Q1 = 78 - 30Q2 ......................................a

78 - 30 Q1 - 30 Q2 = 2 Q2 or Q2 = 78 - 30Q1/32 ................................b

by equation a and b we get here

33 Q1 = 78 - 30 (78 - $\frac{30Q1}{32}$ )

so here Q1 = 1 and

Q2 = 78 - $\frac{30*1}{32}$

Q2 = 1.5

so that Q will be

Q = Q1 + Q2

Q = 1 + 1.5

Q = 2.5

now we get value of P that is

P = 78 - 15 Q

P = 78 - 15 (2.5)

P = 40.5

so charged to maximize profits is 40.5

so correct option is B. 40.5

5 0

3 years ago