Why do managers consider direct costs to be more accurate than indirect costs?

Which of the following would you classify as a structural adaptation of an animal?

eimsori [14]

Answer:

The answer is D I would say.

8 0

2 years ago

Read 2 more answers

The Brite Beverage Company bottles soft drinks into aluminum cans. The manufacturing process consists of three activities:

Leokris [45]

Answer:

A. $0.1 per can

B. $3,315

C. 0.098 per packaged can

Explanation:

a) Calculation to Determine the total activity cost per packaged can under present operations.

Using this formula

Total activity cost per packaged = Total activity cost under present operations ÷ total cans packaged

Let plug in the formula

Total activity cost per packaged= $650,000 ÷ 6,500,000

Total activity cost per packaged= $0.1 per can

Therefore the total activity cost per packaged can under present operations is $0.1 per can

b) Calculation to Determine the amount of increased packaging activity costs from the expected improvements.

First step is to calculate the Packaging cost per bottle =

Using this formula

Packaging cost per bottle = Current packaging cost ÷ total cans packaged

Let plug in the formula

Packaging cost per bottle = 110,500 ÷ 6,500,000

Packaging cost per bottle = $0.017 per bottle

Second step is to calculate the Total packaging cost

Using this formula

Total packaging cost = Total bottle × cost per bottle

Let plug in the formula

Total packaging cost= 6,695,000 × $0.017

Total packaging cost= $113,815

Now let determine the amount of increased packaging activity costs from the expected improvements.

Using this formula

Amount of increased packaging activity costs = total packaging cost - current packaging cost

Let plug in the formula

Amount of increased packaging activity costs= $113,815 - 110,500

Amount of increased packaging activity costs= $3,315

Therefore the amount of increased packaging activity costs from the expected improvements is $3,315

c) Calculation to Determine the expected total activity cost per packaged can after improvements

First step is to calculate Total activity cost using this formula

Total activity cost = Mixing cost + filling cost + packaging cost

Let plug in the formula

Total activity cost == $286,000 + $253,500 + $113,815

Total activity cost == $653,315

Now let determine the Expected total activity cost per packaged can

Using this formula

Expected total activity cost per packaged can = Total activity cost ÷ no. of bottles

Let plug in the formula

Expected total activity cost per packaged can= $653,315 ÷ 6,695,000

Expected total activity cost per packaged can=0.098 per packaged can

Therefore the expected total activity cost per packaged can after improvements is 0.098 per packaged can

6 0

3 years ago

Rembrandt Paint Company had the following income statement items for the year ended December 31, 2021 ($ in thousands): Sales re

Ugo [173]

Answer:

<h2> Rembrandt Paint Company</h2><h2>Income Statement - December 31, 2021</h2>

Sales revenues $24,000,000

- Cost of goods sold <u> ($13,500,000)</u>

Gross margin $10,500,000

Operating expenses:

- Selling and adm. expenses ($420,000)

- Restructuring costs ($1,400,000)

Total operating expenses <u>($1,820,000)</u>

Income from operations $8,620,000

Other revenue and expenses:

Gain on sales of assets $3,200,000

Interest revenue $220,000

Loss from discontinued oper. ($2,200,000)

Interest expense ($420,000)

Total other revenue and expenses <u>$800,000</u>

Net income pre-tax $9,420,000

Income taxes (25%) <u>($2,355,000)</u>

Net income after taxes $7,065,000

Shares outstanding 600,000

Earnings per share (EPS) $11.78

3 0

3 years ago

Genent%E2%80%8B Industries, Inc.%E2%80%8B (GII), developed standard costs for direct material and direct labor. In%E2%80%8B 2017

Sliva [168]

Answer:

Direct material price variance

= (Standard price - Actual price) x Actual quantity purchased

= ($10 - $7) x 1,300 pounds

= $3,900(F)

Explanation:

Direct material price variance is the difference between standard price and actual price multiplied by actual quantity purchased.

7 0

3 years ago

A company's board of directors votes to declare a cash dividend of $.80 per share of common stock. The company has 16,000 shares

den301095 [7]

Answer:

$8,400

Explanation:

The computation of the total amount of the cash dividend is shown below:

= Outstanding number of shares × cash dividend per share

= 10,500 outstanding shares × $0.80

= $8,400

The cash dividend is computed only on outstanding shares i.e issues shares minus treasury shares

So, it will not be computed on authorized shares either on issued shares

5 0

3 years ago

Why do managers consider direct costs to be more accurate than indirect​ costs?

Why do managers consider direct costs to be more accurate than indirect costs?