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kumpel [21]
3 years ago
6

Which of the following costs could contain both variable and a fixed cost element with respect to the total output of the compan

y?
a. sales commissions.
b. manufacturing overhead costs.
c. direct material.
d. administrative salaries.
Business
1 answer:
astraxan [27]3 years ago
7 0

Answer:

b. manufacturing overhead costs.

Explanation:

Manufacturing overhead cost refers to all costs associated with production apart from direct labor or direct materials. They are the indirect costs incurred during the manufacturing process. Manufacturing overhead costs are the production costs that can not be traced directly to the produced items.

Examples of manufacturing overhead costs include depreciation, repairs and maintenance, insurance, and heating costs. Some aspects of the costs, such as depreciation, insurance, rents for the manufacturing space, are fixed costs. They do not vary with production. Other elements of manufacturing costs, such as power, repairs, and utilities, are variable costs.

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Under ASC 606, the transaction price generally should be adjusted for the effect of the time value of money when
luda_lava [24]

Answer:

B. The selling price of the product and the consideration promised in the contract differ significantly.

Explanation:

"While determining the transaction price, an entity shall adjust the amount of consideration with respect to the time value of money, if the timing of payment to be made by customer under the contract provides some significant benefit of financing to the customer or the entity for the transfer of goods or services to the customer. The Significant financing benefit could be explicit or implicit in the contract.

The idea behind the significant financing component is that entity should consider the revenue based on the price that a customer would have paid at the time of transferring the goods or services to the customer by the entity i.e. Cash Selling Price (If the payment was made immediately)."

Reference: Prasenjit. “ASC 606: Step 3 – Determining the Transaction Price.” RevGurus, 25 Mar. 2019

6 0
3 years ago
When a country imposes tariffs, it is likely to cause
bearhunter [10]

Answer:

lower prices for domestic production

Explanation:

tariffs means

more tax on imports so

imports would be more expensive

A. increased quantities of imports?

if imports are more expensive because of tariffs and

if people buy less

then there would NOT be

increased quantities of imports

because they are more expensive

B. higher prices for the import-competing goods both domestically and abroad?

import-competing (domestic) goods would be cheaper

C. lower prices for domestic production?

yes domestic production would be cheaper

D. less expensive exports?

only if other countries don't put tariffs on them themselves

3 0
2 years ago
Read 2 more answers
If fixed costs are $400,000 and the unit contribution margin is $20, how many units must be sold in order to realize an operatin
Mariulka [41]

Answer:

32,500 units must be sold to realize an operating income of $250,000.

Explanation:

a) Calculations:

Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.

To break-even, the company needs to sell the following quantity,

Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.

To achieve a target profit, the company needs to sell the following quantity,

Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.

b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs.  From the analysis, a company can also determine the units to sell in order to realize a target profit.  This helps a lot in decision making.

8 0
3 years ago
Pure economic rent is:
shutvik [7]

Answer:

A. The payment to factors whose supply is perfectly inelastic.

Explanation:

This means that this factor of production need to be purchase regardless of the price change, otherwise the business operation couldn't continue.

One example of a pure economic rent is the cost of latex for rubber glove manufacturer. Since latex is the main ingredients for the product, that company still have to buy it even if the price of the latex is increasing (inelastic) . Otherwise, the company need to shut down its operation.

8 0
3 years ago
What is a rental inventory and why is it a good idea to have one?
bearhunter [10]

A rental inventory is basically like people rent you things. Cars, and lots of stuff. its a good idea to have a rental inventory because you can rent people things in a business.

3 0
3 years ago
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