Based on the details given, the following are true:
- 1. Incremental manufacturing cost = $14.60
- 2. Incremental cost = $17.50
<h3>Incremental manufacturing cost if production increased from 20,250 to 20,251</h3>
The fixed cost will not change as the production amount is still below 24,500 units. Incremental manufacturing cost will therefore be:
= Direct material + Direct labor + Variable overhead
= 7.70 + 4.70 + 2.20
= $14.60
<h3>Incremental cost for increased from 20,250 to 20,251</h3>
This will include all costs that are not fixed.
= Incremental manufacturing cost + Sales commissions + Variable admin expense
= 14.60 + 1.70 + 1.20
= $17.50
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Answer:
They can operate a business however they choose, but it must be fair and right to society.
Explanation:They must keep their hours everyday, fair prices, etc
Answer:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Explanation:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Follow this for all the cost heads provided.
Group of options omitted and they are
a) brownfield investment only
b) brownfield and horizontal investment
c) greenfield and horizontal investment
d) greenfield and vertical investmen
Answer:c) greenfield and horizontal investment
Explanation:
A green-field investment is foreign direct investment whereby a parent company establishes a new subsidiary in a different or foreign country, starting its operations from the scratch, ie building the establishment from ground up and not buying an already existing plant or structure..
By horizontal direct investment , it means that the investor establishes the same type of operation in a different country as it operates in its home country, for example, Ford Motor Company based in the United States building a new auto plant in South Africa.
Answer: D. Product costs are expensed in the period the related product is sold
Explanation:
The statement that is true with regards to product cost is that product costs are expensed in the period the related product is sold.
It should be noted that the account for the cost of goods sold consist of product cost. In a situation whereby goods are not sold, the goods will be carried to the next period.
