Answer:
<u>Short report on the evaluation of Absorption Costing and Relevant Costing</u>
FROM : Accounting Student
TO : Accountant
DATE : Tuesday 19 January 2021
RE : Evaluation of Absorption Costing and Relevant Costing
1. Product Cost :
Absorption Costing = Variable manufacturing costs + Fixed manufacturing costs
Relevant Costing = Variable manufacturing costs only
2. Period Costs :
Absorption Costing = All Non- Manufacturing Costs
Relevant Costing = All Non- Manufacturing Costs + Fixed Manufacturing Costs
3. Gross Profit / Contribution
Absorption Costing = Calculates Gross Profit (Sales - Production Costs)
Relevant Costing = All Non- Manufacturing Costs + Fixed Manufacturing Costs
Signed
Accounting Student
Date 1/19/2021
Explanation:
Absorption costing is also known as full costing. All manufacturing costs are included in the Product Cost. This is most suitable for external reporting and acceptable for IFRS and GAAP.
Relevant costing is also known as Direct or Variable costing. Only Variable manufacturing costs are included in Product Costs. This costing method is for internal purposes and is used by Managers for decision making.
Answer and Explanation:
The preparation of production budget is shown below:-
Weightless Inc
Production Budget
For the month ending October 31
Units Bath Scale Units Gym Scale
Expected Units to
be sold 150,000 90,000
Desired Inventory,
October 31 12,500 8,000
Total 162,500 98,000
Less: Estimated Inventory,
October 1 -18,000 -10,000
Total Units to be
produced 144,500 88,000
<h2>Answer</h2>
Mixed Economic System
<h3>Explanation</h3>
Jenn wants the concept of private ownership when it comes down to establishing her own coffee shop and this therefore results in call for rights to ownership. On the other hand, she looks forth to availing various subsidized facilities such as that offered in the bus and subway network. The combination of both economic systems can be found in the Mixed Economic Structure.
Answer:
A blue ocean strategy successfully combines differentiation and cost-leadership activities using value innovation. It focuses on creating additional demand and grabbing market opportunities.
The four key questions are:
- Eliminate: what factors that this company takes for granted can and should be eliminated to foster value innovation.?
- Reduce: what industry factors can be reduced?
- Raise: what industry factors should be increased?
- Create: which factors should we created that have never been offered by our competitors?
It can help you to look toward the future and see what may lay ahead so you might be ready for anything that life may have to throw your way
