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Elina [12.6K]
3 years ago
7

Which of the following is an example that critics of absorption costing may use to show that its use may generate unwanted manag

er​ actions?
A. Plant managers may defer maintenance beyond the current period to free up more time for production.
B. Plant managers may accept a particular order to increase production even though another plant in the same company is better suited to handle that order.
C. Plant managers may switch production to those orders that absorb the highest amount of fixed manufacturing​ overhead, irrespective of the demand by customers.
D. All of the above.
Business
1 answer:
dlinn [17]3 years ago
8 0

Answer:

D. All of the above.

Explanation:

Absorption costing is the method in which cost is charged on the basis of the actual expenses and facilities absorbed ion the production.

This basically charges usually more cost, in comparison to activity based costing.

In this manner since cost charged is more, the profit for the company is reduced. Accordingly the managers then prefer to produce as much as they can.

The main focus of management is for production.

Even in case this requires maintenance they put the resources into production rather than maintenance.

Thus, all of the statements are true.

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On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fis
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Answer:

Explanation:

On July 1, 2019, Cullumber Company pays $12,000 to Kalter Insurance Co. for a 3-year insurance contract.

For Cullumber Company:

July 1 Debit:Prepaid Insur $12000

Credit: Bank. $12,000

Being payment for prepaid Insurance.

Dec 31. Credit:prepaid insur $2,000

Debit:Insurance exp $2,000

Being insurance expenses for the year.

For Blossom Company:

July 1 Credit:Unearned Revenue $12000

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Dec 31. Debit:unearned revenue $2,000

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3 0
3 years ago
Which scenario below is an example of complementary products, based on their cross-price elasticity?A. Bananas and lettuce, with
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Answer: B. Shampoo and conditioner, with an elasticity of -3.5.

Explanation:

Complimentary products are those which see their quantity demanded move together because the goods usually compliment each other like tea and sugar.

Their Cross-price elasticity shows this by being a negative figure. This is because when the price of one commodity goes up, the quantity demanded of the other goes down because higher prices lead to lower quantity demanded.

The actual question showed that Conditioner and Shampoo had a cross-price elasticity of -3.5 so this is the correct answer.

3 0
2 years ago
Campbell, a single taxpayer, earns $400,000 in taxable income and $2,000 in interest from an investment in State of New York bon
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Answer: Campbell will owe $115,858.25 in federal income tax this year computed as follows:

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Average Tax Rate = TotalTax / TaxableIncome = $115,858.25 / $400,000 = 28.96

Campbell's effective tax rate is 28.82 percent.

Effective tax rate = TotalTax / TotalIncome = $115,858.25 / ($400,000 + $2000) = 28.82

Campbell is currently in the 33 percent tax rate bracket. Her marginal tax rate on deductions up to $213,650 will be 33 percent. However, her marginal tax rate on the next $5,100 of income will be 33%, and income earned over $405,100 will be 35 percent. Income earned in excess of $406,750 will be taxed at 39.6%.

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What is the purpose of a design brief?
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A project management document that allows you to identify the scope, scale, and core details of your upcoming design project.
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Ethical dilemmas usually have clear right or wrong answers.<br><br> True<br> False
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The correct answer should be false.

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