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Aleksandr-060686 [28]
3 years ago
10

The value chain describes the costs associated with making a product. What​ box(es) are expensed immediately when incurred on th

e income statement as operating​ expenses/SGA ("period​ costs")?
Business
1 answer:
KIM [24]3 years ago
8 0

Answer:

ALL EXCEPT PRODUCTION

Explanation:

The costs of the value chain includes: Research and Development, Design Costs, Production, Marketing, Distribution and Customer Service.

The costs of the value chain are expensed in the current year income statement because they majorly (except production costs) fall under the category called periodic costs.

Periodic costs are costs that are more aligned with the passage of time than directly traceable to units of a product or event. Another major difference between product costs and period costs is that product costs can only be incurred when the products have been acquired or manufactured, while periodic costs will apply when the goods have not been acquired or produced yet, or as aforementioned, are associated with the passage of time.

In the light of above definition, all costs within the value chain are expensed as periodic costs with the exception of production costs which obviously are product costs.

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Nivan Co. issued $500,000 of 5 percent, 10-year, callable bonds on January 1, Year 1, at their face value. The call premium was
Sav [38]

Answer and Explanation:

The journal entries are shown below:

On Jan 1

Cash $500,000

          To Bond Payable  $500,000

(Being the issuance of the bond is recorded)

On Dec 31

Bond Payable $500,000

Loss on redemption $15,000    ($500,000 × 3%)

          To Cash    ($500,000 × 103%)  $515,000

(Being the redemption of the bond is recorded and the remaining balance or we can say balancing figure is debited to loss on redemption)

8 0
3 years ago
A company received an order from a customer in June for services to be provided. Those services were provided in July, and the c
scZoUnD [109]

Answer:

B. July

Explanation:

The principle of revenue recognition arises whenever the income is realized or earned whether cash is collected or not and it also supports the accounting accrual basis. Realizable here means that the customer obtains the product however the payment is made afterward.

So, in the given case, the service is provided in the July month and the same is to be recorded on the July month

8 0
3 years ago
A company provides the following data for material costs: Standard cost per unit 3 pounds at $2 per unit Actual cost per unit 2.
satela [25.4K]

Answer:

Direct material price variance= $5,000 unfavorable

Explanation:

Giving the following information:

Standard cost per unit 3 pounds at $2 per unit

Actual cost per unit 2.5 pounds at $3 per unit

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<u>To calculate the direct material price variance, we need to use the following formula:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 3)*5,000

Direct material price variance= $5,000 unfavorable

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VLD [36.1K]

Answer:

b

Explanation:

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3 years ago
Which of the following is an economic change that can affect careers?
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c) a big recording company buys a small independent label

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3 years ago
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