If you are talking about the priority of the order of operations. It is C.
Answer:
Part a. Compute the unit product cost under absorption costing.
Variable costs per unit:
Direct materials $ 165
Direct labor $ 72
Variable manufacturing overhead $ 8
Fixed Overheads per unit:
Fixed manufacturing overhead ($535,500/10,500) $ 51
Unit product cost $296
Part b. Compute the unit product cost under variable costing.
Variable costs per unit:
Direct materials $ 165
Direct labor $ 72
Variable manufacturing overhead $ 8
Unit product cost $245
Explanation:
Part a. Compute the unit product cost under absorption costing.
Absorption costing treats fixed overheads as part of product cost and hence fixed manufacturing overheads are included in unit product cost at their absorption rate
Part b. Compute the unit product cost under variable costing.
Variable Costing System treats fixed overheads as a Period Cost and not part of product cost hence fixed manufacturing overheads are excluded in unit product cost
Answer:
Economist A
Government spending multiplier $4billion
Tax multiplier $8billion
Economist B
Government spending multiplier $8billion
Tax multiplier $2billion
Explanation:
Computation for the amount the government would have to increase spending to close the output gap according to each economist's belief
ECONOMIST A
Government spending multiplier=16/4
Government spending multiplier=$4billion
Tax multiplier=16/2
Tax multiplier=$8billion
ECONOMIST B
Government spending multiplier=16/2
Government spending multiplier=$8billion
Tax multiplier=16/8
Tax multiplier=$2billion
Therefore the amount the government would have to increase spending to close the output gap according to each economist's belief are :
ECONOMIST A
Government spending multiplier=$4billion
Tax multiplier=$8billion
ECONOMIST B
Government spending multiplier=$8billion
Tax multiplier=$2billion
Examples of internal failure costs include warranty service and complaint handling. As a result, choice b is accurate.
<h3>
What do you mean by internal failure cost?</h3>
Internal failure costs are expenses related to flaws discovered prior to the client receiving the good or service. External failure costs are expenses related to flaws discovered after the client has purchased the good or service.
Internal failure costs are quality expenses related to product flaws found before a product leaves the facility.
Hence, warranty services all are examples of the internal failure cost.
Learn more about internal failure costs:
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