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Answer:
d. Single-use plans are operational plans, whereas standing plans are tactical plans.
Explanation:
Standing plans are prepared for the entire organization aiming to achieve the organizational goals, thus, prepared by top level management, and is not changed after it is prepared.
Whereas the single-use plans are prepared by the lower level management for achieving daily targets and thus, changes every day, the plan is for operational purposes and do not involve any tactics.
Whereas the standing plans include all the tactical steps to achieve the organizational goals.
Answer:
The activity base selected determines whether a cost behaves as a variable cost or fixed cost. This statement is true.
The correct answer is A.
Explanation:
Variable cost is a cost that fluctuates with respect to activity level while fixed cost is a cost that remains unchanged irrespective of activity level.
Thus, the activity base selected determines whether whether a cost is fixed or variable.
Answer:
Manufacture further and sell it for $82,500
Explanation:
Profit in such case will be:
Sales amount $33,000
Less: Cost of Inventory $24,750
Profit $8,250
Process further and sell.
Profit will be:
Sales value: $82,500
Less: Further processing cost $24,750
Less: Cost of Inventory $24,750
Profit on Inventory $33,000
