What is the purpose of cost allocation? why is it so important to allocate cost properly in a business?

According to purchasing-power parity, if it took 58 Indian rupees to buy a dollar today, but it took 55 to buy it a year ago, th

oksano4ka [1.4K]

Answer:

Given that,

Current exchange rate between India and U.S :

1 Dollar = Rs. 58

Exchange rate between India and U.S a year ago :

1 Dollar = Rs. 55

Above information conclude that the currency of India depreciates whereas currency of united states appreciates.

This is due to the increase in the exchange rate in India. Now, a dollar become more expensive than it a year ago.

So, the Indian rupee depreciated and U.S dollar appreciated.

3 0

3 years ago

The list of the tasks, duties, and responsibilities that a job entails is known as a _____. multiple choice utilization analysis

mash [69]

<span>This is known as a job description. A job description informs potential employees about the duties and responsibilities they will have if hired. The job description also tells potential employees about the position's working conditions and qualifications required and other specifications.</span>

8 0

3 years ago

If your paycheck indicates that you worked 7.5 hours each day in an 8-day pay period, how many hours did you work in all? A. 54

allsm [11]

Hi!

To solve this multiply

7.5 x 8 = 60

The answer is C. 60 hours

Hope this helps! :)

6 0

3 years ago

An apparel manufacturing plant has estimated the variable cost to be $2.40 per unit. Fixed costs are $2,000,000 per year. Forty

marta [7]

Answer:

BEP units: 42,017

BEP dollars: 2,100,850

unit cost at 100,000 units produced: 22.40 dollars

operating profit : 1,656,000

Explanation:

$Sales \: Revenue - Variable \: Cost = Contribution \: Margin$

50 - 2.4 = 47.6 contirbution margin per unit

$\frac{Fixed\:Cost}{Contribution \:Margin} = Break\: Even\: Point_{units}$

2,000,000/47.6 = 42.016,80 BEP units

BEP units x sales price = BEP dollars

42,017 x 50 = 2,100,850

(B)

fixed cosy/ units produced = fixed cost per unit

2,000,000/ 100,000 = 20 fixed cost per unit

fixed cost + variable cost = total cost

20 + 2.40 = 22.4

(C)

There are 40% units sold at the preferred customer at cost

So we sale at gain only 60% of the units:

100,000 units x 60% x 50 = 3,000,000

100,000 units x 40% x 22.40 = 896,000

Total revenue 3,896,000

Cost: 100,000 x 22.40 <u> (2,240,000) </u>

operating profit 1,656,000

4 0

3 years ago

Land, a building and equipment are acquired for a lump sum of $1,000,000. The market values of the land, building and equipment

sergij07 [2.7K]

Answer:

The answer is option (b). $250,000

Explanation:

Step 1: Determine total market value

The expression for the total market value is;

Total market value=land value+building value+equipment value

where;

land value=$300,00

building value=$600,000

equipment value=$300,000

replacing;

Total market value=(300,000+600,000+300,000)=$1,200,000

Total market value=$1,200,000

Step 2: Determine fraction of the total market value that is equipment

Equipment fraction=equipment value/total market value

where;

equipment value=$300,000

total market value=$1,200,000

replacing;

Equipment fraction=300,000/1,200,000=0.25

Step 3: Determine cost assigned to the equipment

Cost assigned to the equipment=equipment fraction×lump sum

where;

equipment fraction=0.25

lump sum=$1,000,000

replacing;

Cost assigned to the equipment=(0.25×1,000,000)=250,000

Cost assigned to the equipment=$250,000

3 0

3 years ago