Under activity-based costing, non manufacturing costs may be allocated to products based on cause
For better understanding, lets explain the term
- Activity based costing is commonly described as an overhead cost-allocation system that shares overhead to different activity cost pools and gives each of the activity cost pools to products or services through of cost drivers that shows the activities used.
- It is usually based on the cause or motives under activity based costing is manufacturing cost allocation. That is the cause of its use.
From the above. we can say the answer Under activity-based costing, non manufacturing costs may be allocated to products based on cause is correct
Learn more from:
brainly.com/question/15077504
Answer:
$128,100
Explanation:
Cash flows from operating activities
Net income $91,000
Adjustment to reconcile
net income to net cash
from operations
Depreciation expenses $47,000
Changes in working
capital
Decrease in accounts re. $4,200
Increase in inventory ($18,500)
Decrease in prepaid rent $1,700
Decrease in income tax payable ($3,800)
Increase in accounts payable $6,500
Net cash flow from $128,100
operating activities.
Answer:
a good or service at a lower opportunity cost than others.
Explanation:
A country has a comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.
For example :
there are two countries , A and B
A produces 10 kg of rice and 5 kg of beans.
B produces 5 kg of rice and 10 kg of beans
the opportunity cost of A :
in producing rice = 5/10 = 0.5
In producing beans = 10/5 = 2
the opportunity cost of B :
in producing rice = 10/5 = 2
In producing beans = 5/10 = 0.5
A has a lower opportunity cost and a comparative advantage in the production of rice.
B has a lower opportunity cost and a comparative advantage in the production of beans.
Answer:
department 1: $18,000
department 2: $42,000
department 3: $40,000
Explanation:
total annual rent expense $100,000
total rented space 10,000 sq ft
first we must calculate the rental cost based on comparable floor space:
(1,500 x $15) + (3,500 x $15) + (5,000 x $10) = $22,500 + $52,500 + $50,000 = $125,000
now we allocate costs on the following proportion: $100,000 / $125,000 = 0.8
department comparable rent proportional cost total
1 $22,500 0.8 $18,000
2 $52,500 0.8 $42,000
<u>3 $50,000 0.8 $40,000</u>
total $125,000 $100,000
Answer:
Dr Cash $8,670
Cr Interest Revenue $170
Cr Note Receivable $8,500
Explanation:
As we know that the interest given is for a year, so we should calculate the interest rate for a unit month, which is calculated as under:
Interest per month = 0.08/12 = 0.0067
Interest revenue = Note Value * Interest rate per month * Number of months
Interest revenue = $8,500 * 0.0067 * 3
Interest revenue = $170
The double entry would be as under:
Dr Cash $8,670 .... ($8,500 Note Value + $170 Interest Revenue)
Cr Interest Revenue $170
Cr Note Receivable $8,500
