Answer: Statement A
Explanation: Direct cost are those costs which are variable in nature and can be allocated to the total units of output produced, these are easily traceable. Examples - direct material, direct labor and piece rate wages etc.
Indirect costs are those cost which cannot be allocated to the number of units produced on individual basis unlike direct cost these costs can be either fixed or variable in nature. Examples - rent expenses, administrative expenses.
.
From the above explanation we can conclude that statement A is correct.
Answer and Explanation:
The journal entry is shown below:
1. Organization expense Dr $58,500
To cash $58,500
(Being organization expense is recorded)
Here organization expense is debited as it increased the expenses and credited the cash as it decreased the assets. Also the assets and expenses contains normal debit balance
2. No entry is required as the amortization is recorded for only intangible assets
Answer:
(a) 5
(b) $150 million
(c) 45 million
Explanation:
(a) Multiplier = 1 ÷ (1 - MPC
)
= 1 ÷ (1 - 0.8
)
= 1 ÷ 0.2
= 5 ⇒ the value of the simple multiplier is 5.
b) If the autonomous expenditure is increased by $30 million then the total output will increase by:
= $30 million × 5
= $150 million
c) If the Marginal propensity to import is 0.3 then the import will increase by:
= 150 × 0.3
= 45 million
Answer:
"a nonprofit-making money cooperative whose members can borrow from pooled deposits at low interest rates."
Answer:
d.cost of wages of assembly worker
Explanation:
The following are not related to cost of producing the cell phone because
a.salary of plant supervisor: Overall supervisors are accountable of various product of the organisation for example the plant might have five outputs with the cell phone being one of them therefore his/her labor costs are not related to a certain product.
b.cost of phone components : Direct labor is related to cost of paying workers in an organisation therefore cost of phone components doesn't have anything to do with people.
c.cost of oil lubricants for factory machinery : explanation is the same as in b
d.cost of wages of assembly worker : the worker the directly linked to the production of the product thus his/her wages are a direct labor cost to the manufacturer.
