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1 year ago

Consumers must make choices about what to buy and what to forgo to fulfill wants because?

Business

1 answer:

jarptica [38.1K]1 year ago

5 0

Answer:

Resources are limited

Explanation:

Consumers must make choices about what to buy and what to forgo because resources are limited.

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You have just taken a job at a manufacturing company and have discovered that they use absorption costing to analyze product cos

poizon [28]

Answer and Explanation:

Respected Sir,

Sub: Absorption costing to analyze product costs and subsequent cost-volume-profit decisions

As per your requirement please find the explanation below:

Absorption costing is a process by which we add part of the fixed overhead to the production expense of the goods. If we do on a per-unit basis. Here we will compute by dividing the fixed costs by the number of units that we built and sold over the era. Whereas Variable costing includes fixed overhead as a lump sum instead of a per-unit price.

Under this process, all your variable costs like equipment, raw materials, and shipping are included. We will add the maximum fixed overhead costs for the duration. Such costs are not calculated on a per-unit basis. Rather than we deduct them as a lump-sum expense from your income amount.

Variable costing is really useful as it reveals the earnings after all the expenses are paid for the accounting period. While you would not have earned revenue for the goods we purchased as some may be in the inventory, we are showing you have paid all of your expenses for the time. We have excess revenue when you actually sell the finished goods in the warehouse.

The absorption approach is not all that effective as absorption costing will inflate the income figures excessively in any given span of accounting. Since you're not going to subtract any of your fixed costs as we did not sell any of us produced goods, our profit and loss report doesn't reflect the maximum expenses you've had for the time. Therefore, these results may mislead us when our profitability is analyzed.

Regards

ABC

7 0

3 years ago

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Dmitry_Shevchenko [17]

Heyyyyyy thanks for the points, have a nice day/night wtv :)

6 0

2 years ago

Read 2 more answers

1. Why might a person assume that Ms. White would be doing well financially?

GuDViN [60]

Answer:

I think you’re a person assumes and Mr. White will be doing well financially is because she is that the one who is teaching people how to financially afford people are going to think she’s doing well financially

Explanation:

It’s really simple she’s doing she’s teaching everybody how to initially a food thing should be good

8 0

2 years ago

Recording Issuing of Materials Materials issued for the current month are as follows: Requisition No. Material Job No. Amount 94

babymother [125]

Answer:

Work in process = $72,220

Factory Overhead = $1,098

Explanation:

DATA

No. Material Job No. Amount

945 Fiberglass 78 $20,240

946 Plastic 93 $9,890

947 Glue Indirect $1,098

948 Wood 99 $3,622

949 Aluminium 108 $38,468

Required: Amount of materials transferred to Work in Process and Factory Overhead?

Solution

Work in process = sum of all direct material cost

Work in process = $20,240 + $9.890 + $3,622 + $38,468 = $72,220

Factory Overhead = sum of all indirect material cost

Factory Overhead = $1,098

6 0

3 years ago

Crane Company purchased equipment on January 1 at a list price of $120000, with credit terms 4/10, n/30. Payment was made within

Brrunno [24]

Answer:

The cost of equipment = $127,650

Explanation:

<em>According to International Accounting Standards (IAS) 16, property plants and equipment, the cost of land includes all of the cost necessary to bring and make it ready for the intended use. </em>

<em>These costs include purchase cost, fees and commission associated with the purchase transaction. </em>

Here in this question the installation charges, sales taxes and the cost of concrete slab all fall within the definition of IAS 16

The quotation 4/10, n/30 implies that if payment is made within =10 days, Crane would get 4% off the initial purchase price.

Since the payment was made within the discounted period, the net purchase price would be

Purchase price = 120,000 - (4%× 120,000)= 115,200

The cost of equipment = 115,200 +4,750 + 2,100 + 5600= 127650

The cost of equipment = $127,650

4 0

2 years ago