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likoan [24]
3 years ago
6

(c) Which of the following statements are true? (You may select more than one answer. Single click the box with the question mar

k to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease. unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will decrease. unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will be unaffected. unanswered If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected. unanswered
Business
1 answer:
AysviL [449]3 years ago
6 0

Answer:

Customer and Product Margin under Activity-based Costing and Traditional Costing

True Statements:

1. If a customer orders more frequently, but orders the same total number of units over the course of a year, the customer margin under activity based costing will decrease.

2. If a customer orders more frequently, but orders the same total number of units over the course of a year, the product margin under a traditional costing system will be unaffected.

Explanation:

Customer Margin is the difference between the total revenue generated from a customer minus the acquisition and service costs.   In the above instance, the customer margin decreases because of the costs of servicing the customer's frequent orders.  Customer service costs are usually higher with more frequent orders, when activity-based costing is employed because frequent orders increase the activity level and the associated costs.

Product Margin is the profit margin generated per product.   It is the markup on the cost of the product.  It shows the difference in amount between the selling price and the manufacturing cost.  Frequent orders cannot change the product margin under the traditional costing technique unlike it does with the activity-based costing technique.

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Consider the overall market for beverages in the US. This market consists of both alcoholic and non-alcoholic drinks. Within the
Andru [333]

Answer:

The correct answer is: a macro-segment.

Explanation:

The Market Opportunity Analysis or MOA is a tool used to identify market opportunities and measure them to determine if they can be profitable for the company before the firm starts planning to work with it. The MOA implements segmentation to classify as specific as possible the product that is intended to be offered.

Micro-segments refer to products with narrow scopes while macro-segment products have wider reach and variability inherent. Thus, in the example, <em>ales represent the macro-segment since it has varieties such as brown ale, pale ale, golden ale, Scotch ale, and mild ale just to mention a few.</em>

4 0
3 years ago
The Sherman Antitrust Act of 1890 was formed to: Group of answer choices Forbid combinations in restraint of trade and monopoliz
lorasvet [3.4K]

Answer:

Forbid combinations in restraint of trade and monopolizing.

Explanation:

The Sherman Antitrust Act of 1890 is mainly aimed at preventing anti competitive agreements and unilateral conduct by a group of businesses aligning with one another. Such alignment results in restraint of trade and monopoly.

This Act enables the Department of Justice to bring charges against violators of antitrust laws and they may face as much as treble damages (three times of the damage caused to other parties).

Artificial raising of price and restriction of supply of products or trade are prohibited under this Act.

7 0
3 years ago
Incremental Analysis for Discontinuation Decision Total Contribution margin lost if special oats is discontinued Less: Fixed cos
Scilla [17]

Incremental Analysis for Discontinuation Decision can have two way affect to the Business

Explanation:

1. Contribution Margin Lost- If the special eats is discontinued then obviously it would affect (decrease) the profit margin that the Business would be enjoying before the product discontinues

Less:

2. Fixed Cost Saving - This would generally increase as the expenditure of the organisation would decrease.

Depending upon how the product performed the company can be benefited as well as incur loos at the same time .Discontinuation of a product is generally done when the company is facing losses.

6 0
3 years ago
Salon Company originally issued 4,000 shares of $10 par value common stock for $120,000 ($30 per share). Salon subsequently purc
katen-ka-za [31]

Answer:

(D)  Credit to Paid-In Capital from Treasury Stock for $800.

Explanation:

Please see attachment

6 0
3 years ago
Machida Inc. is considering a project that is expected to produce cash inflows of $3,200 per year in years 1-4, with a final cas
PolarNik [594]

Answer:

The NPV = $1578.185602 rounded off to $1578.19

As the NPV is positive, the project should be accepted.

Explanation:

The Net Present Value or NPV is a tool used to evaluate projects. It is used with various other tools to decide whether to undertake a project or not. To calculate the Net Present Value or NPV, we take the present value of the cash inflows provided by the project and deduct the initial cost of the project.  If the NPV is positive, we should proceed with the project and vice versa.

NPV = CF1 / (1+r)  +  CF2 / (1+r)^2  +  ...  + CFn / (1+r)^n  -  Initial Cost

Where,

  • CF1, CF2, ... represents cash flow in Year 1, Year 2 and so on.
  • r is the required rate of return

NPV = 3200 / (1+0.17)  +  3200 (1+0.17)^2  +  3200 (1+0.17)^3  +  

3200 (1+0.17)^4  +  5700 (1+0.17)^5  -  9800

NPV = $1578.185602 rounded off to $1578.19

4 0
3 years ago
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