Other things remain the same if the average aggregate inventory value goes down, then the inventory turnover ratio will go up, but weeks of supply will go down.
An inventory valuation allows a company to provide a monetary value for items that make up its inventory. Inventories are usually the largest current asset of a business, and proper measurement of them is necessary to assure accurate financial statements.
An inventory valuation is a monetary amount associated with the goods in the inventory at the end of an accounting period.
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Fixed cost remained constant regardless of how many products are sold. Fixed cost is a cost behavior which always emerged regardless of the quantity product sold. Machine depreciation expense, insurance expense, and rent expense are several examples of this cost behavior. On the contrary, variable cost is an another type of cost behavior that changes relating to the quantity of the sold product.
Answer:
A) $2.50 per direct labor-hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
where,
Estimated manufacturing overhead = Rent on factory building + Depreciation on factory equipment + Indirect labor + Production Supervisor's salary
= $15,000 + $8,000 + $12,000 + $15,000
= $50,000
And, the estimated direct labor hours is 20,000
So, the rate is
= $50,000 ÷ 20,000
= $2.5 per direct labor-hour
Answer:
The correct statement is expressed by option B - Firms with a low-cost position can reduce the threat of rivalry in an industry.
Explanation:
Firms with a low-cost position can reduce the threat of rivalry in an industry based on these reasons:
Firstly, these firms can decide to set their prices to be the same as the prices of higher-cost competitors.
Secondly, low-cost firms can decide to price their goods or services a little bit below the prices of their high-cost rivals.
Answer:
$404,800
Explanation:
Calculation to determine How much rent is allocable to the assembly department using the direct method of allocation
Using this formula
Rent =Area used by Assembly department / Total Area used by Manufacturing Departments x Total Rent paid
Let plug in the formula
Rent =36,850/ (36,850+30,150) x $736,000
Rent=36,850/67,000*$738,000
Rent=0.55*$736,000
Rent= $404,800
Therefore How much rent is allocable to the assembly department using the direct method of allocation is $404,800
