Answer:
activity variance = $984 F
Explanation:
given data
wages and salaries = $1,420 per month
per birth = $246
planned for activity = 107 births
actual level of activity = 103 births
actual wages and salaries = $27,795
to find out
activity variance for wages and salaries
solution
we know wages and salaries cost for October is
wages and salaries Planning budget = 1420 + ( 107 × 246 )
wages and salaries Planning budget = $27742
and
Wages and salaries Flexible budget = 1420 + ( 103 × 246 )
Wages and salaries Flexible budget = $26758
so
activity variance = $27742 - $26758
activity variance = $984 F
Answer:
option A
Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period are paid at a later period. Thus option B is incorrect.
.
Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost. Hence option C is incorrect.
.
Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its sunk cost. Hence option D is incorrect.
.
Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.
Answer:
c) $20,000.
Explanation:
The computation of the estimated ending inventory is shown below:
We know that
Cost of goods sold = Beginning inventory + purchase made - ending inventory
And, the
Sales - gross profit = Cost of goods sold
$100,000 - $100,000 × 30% = Cost of goods sold
So, cost of goods sold would be
= $100,000 - $30,000
= $70,000
Now the ending inventory would be
$70,000 = $18,000 + $72,000 - ending inventory
$70,000 = $90,000 - ending inventory
So, the ending inventory would be
= $90,000 - $70,000
= $20,000
Answer:
C. uses a separate Work-in-process account for each processing department.
Explanation:
A process costing system -
The term of process costing system is used in the method of cost account .
Where it refers to the method to assign and collect the cost of the goods and services manufactured per unit , is referred to as the process costing system .
The method is very efficient and useful during the production of goods and services in large quantities .
The method is appropriate for different department , where each department is assigned a separate processing method i.e. , if in company there are three major departments , then each department is assigned a specific process costing system , which is specific for a specific department .
Hence , from the question ,
The correct answer is c.
Answer:
Thailand:
Opportunity cost of computers = 300/20 = 15 tons of rice
US:
Opportunity cost of computers = 800/100 = 8 tons of rice
US has a comparative advantage in production of computers
Absence of trade:
Thailand consumes 150 tons of rice, it can consume = (300 - 150)/30 x 2 = 10 computers
US consumes 50 computers, it can consume = 400 tons of rice
After trade :
10 computers exchanged for 120 tons of rice
Thailand continues to consume 150 tons of rice, it will consume = 12 computers (=10 + 30/15)
US continues to consume 50 computers, it will consume = 440 tons of rice (=120 + 40 x 8)
Both would accept the proposal as both are better off with trade
