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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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The shape of China's production possibilities frontier (PPF) should reflect the fact that as China produces more smartphones and
ArbitrLikvidat [17]

Answer:

Remain same

Explanation:

In this situation, China makes tablets and smartphones only. The equipment used to manufacture these two products is nearly the same, the same collection of tools is equally useful in manufacturing both smartphones and tablets. So there is the constant opportunity cost of both commodities.

Resources are similarly appropriate for the manufacturing of two varied goods at a constant opportunity cost.

Therefore, the opportunity costs for additional smartphone remains the same.

8 0
3 years ago
Turkey Corp., a cash basis calendar year C corporation in Savannah, Georgia, has $100,000 of accounts receivable on the date of
Viefleur [7K]

Answer:

The correct answer is $24,500.

Explanation:

According to the scenario, the given data are as follows:

Total Account receivable = $100,000

Amount collected = $70,000

So, if there is sufficient taxable income, then assume tax rate to be 35%.

So, we can calculate the Gains tax by using following formula:

Gain tax = Amount collected × Tax rate

By putting the value, we get

Gain tax = $70,000 × 35%

= $24,500.

5 0
3 years ago
The primary goal for the blue ginger multi-grain blue rice chips campaign should be
Rufina [12.5K]

The primary goal of the campaign for blue guava inter blue rice chips should be to educate.

What exactly is the goal?

A goal is an aim or aim that someone is attempting to reach. A goal can also be the finish line of a racial group or some such into which a player attempts to place an object as part of the game. Goal can also be used as a noun in other contexts. A goal is an objective or objective toward which you work hard and persistently.

Why are goals important?

Setting objectives can assist us progress in life. Goals provide us with a road map to follow. Even if we fail, goals are a wonderful method of holding ourselves accountable. Setting objectives and working toward them assists us in defining.

To know more about Goals visit:

brainly.com/question/6478420

#SPJ4

5 0
1 year ago
Severance pay plans grant employees weekly benefits in addition to state unemployment compensation. True
Yanka [14]

Answer:

False

Explanation:

In simple words, Severance pay can be understood as a salary and/or incentives given to an individual by a company after the job is over. In order to help an individual obtain a new job, severance arrangements can include additional rewards, such as life care and observer ship support.

Thus, the weekly benefits are not included in this and the above statement is incorrect.

4 0
3 years ago
The principal-agent problem arises in labor markets because: Group of answer choices compensating wage differences do not pay fo
densk [106]

Answer:

workers may provide less-than-expected work effort.

Explanation:

Principal-agent problem

This is also called Agency problem. It is simply defined as a type of problem of motivating one party that is the agent just to act on behalf of another person which is the principal. This problems arise usually when incentives between the agent and the principal are not perfectly aligned or in tune.

This form of problem is also said to occur when agents example a firm's managers tends to run after their own personal goals rather than the goals of the principals who is the firm's owners.

Agency relationship

This form of relationship is said to occur if there is a set up or an arrangement in where one person's welfare is dependent or based on what another person does.

Agent

This is simply known as an Individual whose services has being employed by a principal so as to help achieve the principal's objective.

Principle

This is also known as a person who simply employs the services of one or more agents so as to obtain or achieve an objective.

6 0
3 years ago
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