Answer:
Product costs are mostly prime costs (Variable cost). Now lets check where this misclassification occurs.
There are 3 stages of absorption costing.
Stage 1: Allocation
Stage 2: Apportionment
Stage 3: Absorption
Misclassification of product cost of product A occurs at Stage 1.
This means that the share of product cost of A, which is misclassified as selling cost will be equally shared with other products in the stage 2. This sharing of cost will lower the average cost per unit of product A and increase the average cost per unit of other products. Hence, Its true.
Answer:
The answer is D. Income statement
Explanation:
Answer:
In a suburban area with lots of surrounding neighbourhoods
Explanation:
This is because in this area, you are likely to receive middle-upper class customers at the mall who you can ensure will be a great asset to the new mall. Additionally, in a busy area like this you can be certain the mall will always be full of people!
A decrease in demand for cameras would likely be caused by increased abilities in cell phones for filming
