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3 years ago

Consider the following statements regarding traditional costing systems:

Business

1 answer:

joja [24]3 years ago

5 0

Answer:

Statement I and III

Explanation:

Under traditional costing, there is no such identification of various activity pools like activity costing, there is general allocation of overheads based on overhead assigned on labor hours, or machine hours etc:

This is the method in which volume of goods is important and that is what matters for cost allocation.

Further, when they require numerous activities and then the costs allocation based on each different process or activity is not possible as number of activities are really high.

Therefore Statement I and Statement III are correct.

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A manufacturing company incurs direct materials costs of $6 per unit. The total direct materials cost is______when the company m

Alja [10]

Answer:

$12,000

Explanation:

The manufacturing company has a direct materials cost of $6

The company manufactures 2,000 unit

Therefore total direct material cost can be calculated as follows

= 2,000×6

= $12,000

Hence the total direct material cost of $12,000

4 0

2 years ago

A mask company set up a hospitality tent outside the Olympics arena. Its goal was to eoncourage patrons to view it as an Olympic

Grace [21]

Answer: Ambush Marketing

Explanation:

The mask company is engaged in Ambush marketing in the Olympics event.

Ambush marketing is a marketing technique that businesses use to give the public an impression that they are sponsoring an event when they aren't.

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3 years ago

Tiago makes three models of camera lens. Its product mix and contribution margin per unit follow: Percentage of Unit sales Contr

Anna11 [10]

Answer:

A. $36.55

B. 5116 units

C. 7114 units

Explanation:

Requirement 1: Weighted average contribution margin per unit

Lens A = $38 x 25% = $9.5

Lens B = $30 x 40% = $12

Lens C = $43 x 35% = $15.05

Total Contribution margin per unit = $36.55

Requirement 2: Breakeven if fixed cost is $187,000

Break even point (units) = Fixed cost / Contribution per unit

Break even point (units) = 187,000/36.55

Break even point (units) = 5116 units

Lens A = 5116 x 25% = 1279 units

Lens B = 5116 x 40% = 2046 units

Lens C = 5116 x 35% = 1791 units

Requirement 3: How many units to be sold to generate $73,000 profit

Required units = Fixed cost - required profit / contribution per unit

Required units = ($187,000-$73,000)/$36.55

Required units = 7114 units

Lens A = 7114 x 25% = 1779 units

Lens B = 7114 x 40% = 2846 units

Lens C = 7114 x 35% = 2489 units

6 0

2 years ago

Which principle of design is used to make one element of a design stand out?

Olegator [25]

B is the correct answer.

5 0

2 years ago

Read 2 more answers

Melbourne Company uses the perpetual inventory method. Melbourne purchased 500 units of inventory that cost $4.00 each. At a lat

ra1l [238]

Answer:

$1,200

Explanation:

Calculation to determine what the amount of ending inventory appearing on the balance sheet will be:

First step is to determine the units in ending inventory

Units in ending inventory=500 units + 600 units – 800 units sold

Units in ending inventory= 300

Now let determine the Ending inventory

Ending inventory=300 units x $4.00

Ending inventory = $1,200

Therefore the amount of ending inventory appearing on the balance sheet will be:$1,200

5 0

2 years ago