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3 years ago

What is broad averaging, and what consequences can it have on costs?

2 answers:

7 0

What is broad averaging, and what consequences can it have on costs? Broad averaging is when a company or organization spreads the cost of resources across different objects to help the individual products or services stay equal. When a company does this they are assigning the costs of resources uniformly to cost objects. Broad averaging directly relates to costs because they can mislead an organizations data reports by spreading out the costs inappropriately. <span>
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timofeeve [1]3 years ago

5 0

For the answer to the question above, when applying that to a business, you are <span>ignoring the variation in the consumption of resources by the different cost of objects or products that can lead to inaccurate and misleading cost data. In that result, </span><span>it can negatively impact the marketing and operating decisions.

That costing method or approach uses a broad averaging for applying the cost of resources uniformly to cost objects. When in fact those are not uniform ways at all.</span>

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3 years ago

Billy’s Exterminators, Inc., has sales of $592,000, costs of $284,000, depreciation expense of $36,000, interest expense of $28,

defon

Answer:

EPS = $1.9825

Explanation:

EPS (earnings per share) = Net Income / shares of common stock outstanding

Income before taxes = $592,000 - $284,000 - $36,000 - $28,000 = $244,000

Tax = $244,000 x 35% = $85,400

Net Income = $244,000 - $85,400 = $158,600

EPS = $158,600 / 80,000 = $1.9825

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3 years ago

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2 years ago

Otool Inc. is considering using stocks of an old raw material in a special project. The special project would require all 150 ki

frez [133]

Answer:

The relevant cost of the 150 kilograms of the raw material when deciding whether to proceed with the special project: $979.

Explanation:

We do not use the original cost $2,236 because it is sunk cost.

We do not use market value because Otool Inc. does not either incur this cost nor sacrifice any benefit from not buying at market price.

The relevant cost of these raw material should be the benefit sacrificing from not selling the raw material, instead using it in the project; calculated as:

Selling price x Amount sold - Cost of delivery = 7.1 x 150 - 86 = $979.

Thus, the answer is $979.

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3 years ago

In a(n) __________ marketing channel, several independent members each attempt to satisfy their own objectives and maximize thei

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In an independent marketing channel, several independent members each attempt to satisfy their own objectives and maximize their profits, often at the expense of the other members.

<h3>What is marketing channel ?</h3>

A marketing channel can be described as the channel that consist people, organizations, and activities necessary to transfer the ownership of goods from the point of production to consumption.

It shoul;d be noted that this can be seen as the way products get to the end-user, the consumer; and is also known as a distribution channel.

Therefore, option B is correct.

Learn more about marketing at:

brainly.com/question/14457086

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1 year ago

What is broad​ averaging, and what consequences can it have on​ costs?

What is broad averaging, and what consequences can it have on costs?