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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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Digital marketing has become an increasingly important element of the​ marketer's toolbox. according to a survey conducted by pe
Rasek [7]

Answer:

73%

Explanation:

Digital marketing is promotion of goods and services using digital tools such as email, search engines, social media, and websites on the internet.

The trend is on the increase and there is more emphasis on developing digital marketing tools, so marketers use services like web design, search engine optimisation, and ecommerce.

Digital marketing has the advantage of always being available so your business never sleeps.

6 0
3 years ago
Cuáles son las tres partes de una fracción​
yanalaym [24]
No Espanol English please?
8 0
3 years ago
When the price level rises, the number of dollars needed to buy a representative basket of goods: A. increases, and so the value
muminat

Answer: B. increases, and so the value of money falls.

Explanation: When the price level rises, the number of dollars needed to buy a representative basket of goods<u><em> increases, and so the value of money falls</em></u>. A representative basket of goods refers to a fixed number of consumer goods and services. The price of these goods and services are valued annually. If one or more of these products increase their value you will need more dollars to buy the basket of goods. So, the value of money falls.

7 0
3 years ago
Here are the 2018 and 2019 (incomplete) balance sheets for Newble Oil Corp.BALANCE SHEET AT END OF YEAR(Figures in $ millions)As
otez555 [7]

Answer:

Newble Oil Corp Balance Sheet for 2018:

Current Assets - $319 million

Net Fixed Assets - $1,290 million

Total Assets = $1,609 million

Current Liabilities - $255 million

Long-term Debts - $875 million

Total Liabilities = $1,130 million

a) Equity = Total Assets ($1,609 million) minus Total Liabilities ($1,130 million) = $479 million

Newble Oil Corp Balance Sheet for 2019:

Current Assets - $465 million

Net Fixed Assets - $1,465 million

Total Assets = $1,930 million

Current Liabilities - $249million

Long-term Debts - $1,010 million

Total Liabilities = $1,259 million

b) Equity = Total Assets ($1,930 million) minus Total Liabilities ($1,259 million) = $671 million

c) Net Income during 2019, if Newble paid dividends of $145 million:

2019 Equity plus Dividends paid minus 2018 Equity = Net Income

($671 + $145 - $479) million = $337 million

d) Depreciation charge for 2019 if Newble purchased $345 million in fixed assets:

2018 fixed assets plus new acquisition minus 2019 fixed assets =

$(1,290 + 345 - 1,465) million = $170 million

e) Change in net working capital between 2018 and 2019:

Net working capital = Current Assets minus Current Liabilities

2018 net working capital = $319 - $255 = $64 million

2019 net working capital = $465 - $249 = $216 million

Therefore, the change in net working capital is $216 - $64 = $152 million.

f) Debt paid off during the year:

2018 debt plus new issue minus 2019 debt balance equals debt paid off.

$(875 + 218 - 1,010) millions = $83 million

Explanation:

a) Equity is the difference between total assets and total liabilities.  In accounting equation, assets = liabilities + equity.

b) Dividends is a distribution from retained earnings (equity).  It decreases the retained net income, which increases the equity.

c) Depreciation also decreases the assets.  To find the charge for the period, we add compare the new assets balance with the old, taking into consideration new acquisitions.

d) Net working capital is the difference between current assets and current liabilities.

e) Debts paid off during the year can be obtained by comparing old debt balance with the new and additional debt issued during the period.

4 0
3 years ago
Arthur Corporation has a margin of safety percentage of 25% based on its actual sales. The break-even point is $290,400 and the
timurjin [86]

Answer:

$53,240

Explanation:

We know that,

Break even point = Fixed cost ÷ contribution margin ratio

$290,400 = Fixed cost ÷ 55%

So, the fixed cost = $290,400 × 55% = $159,720

As the variable expense is 45% and we assume the sales is 100%, so the contribution ratio would be 100% - 45% = 55%

Now the margin of safety equal to

= (Expected sales - break even sales) ÷ (expected sales) × 100

25% = (Expected sales - $290,400) ÷ (expected sales) × 100

25% Sales = (Expected sales - $290,400)

So, the expected sales would be

= $290,400 ÷ 75%

= $387,200

Now the actual profit equals to

= Sales - variable expenses - fixed cost

= $387,200 - $174,240 - $159,720

= $53,240

The variable expense is computed below:

= $387,200 × 45%

= $174,240

4 0
2 years ago
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