Income <span>will be the same under both variable and absorption costing</span> when there is zero beginning inventory and all inventory units produced are sold.
Variable costing fluctuates based on level of output while adsorption costing is when manufacturing costs are absorbed by the amount produced. When everything is sold and no inventory is being held, both will be zero since there is nothing to sell or have on hand.
Answer: Beta should buy from the outside supplier
Explanation:
If Beta produces the product itself, only avoidable costs would be accounted for:
= Direct labor + Direct material + Unavoidable overhead
= 10 + 20 + ( (1 - 40%) * 50)
= 10 + 20 + 30
= $60
If however, Beta buys the product, they will buy at $58 per unit which is less than the $60 they would make it for.
Beta should buy the product because they will be able to save $2 per unit.
<span>There are four methods in order for Martha to sell her product to prospective buyers:
</span>1. Know the principal attributes of a product.
<span>2. Find how the customers rate are choosing these with respect to these attributes.
</span><span>3. Find where the company's product is on these attributes in the customers mind
</span><span>4. Place the company in a different poition in the minds of the customers.</span>
Answer: $242,567.27
Explanation:
The $5,000 is an annuity as it is being paid every year and is a constant amount.
The value in 19 years is the future value of this annuity:
Future value of annuity = Annuity * ( ( 1 + rate) ^ number of years - 1) / rate
= 5,000 * ( ( 1 + 9.5%)¹⁹ - 1) / 9.5%
= $242,567.27
