1. a large number of buyers and sellers
2. an identical or a homogeneous product
Answer:
Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate
Explanation:
Normal costing refers to the actual cost of direct materials, direct labor, and manufacturing overhead applied. This cost is calculated by using a predetermined annual overhead rate.
Direct costs are expenses involved in producing goods or providing services and indirect costs are general expenses that are involved in operating.
The statement about normal costing which is not true is ''Direct costs are traced using an actual rate, and indirect costs are allocated using a budgeted rate''
The physical work effort by an employee at work is called physical labor
Answer:
d. the consumer price index will decrease, but the GDP deflator will not decrease.
Explanation:
If the price of Spanish olives imported into the United States decreases, then the consumer price index will decrease, but the Gross Domestic Products (GDP) deflator will not decrease.
The GDP price deflator also known as the implicit price deflator, measures the changes in the level of prices for all of the final goods and services produced domestically in an economy in a year.
The GDP deflator can be calculated by using the formula;
GDP deflator = (Nominal GDP/Real GDP) × 100.
Answer:
Instructions are listed below
Explanation:
We don't have enough information to answer the question numerically. But, I can provide a few formulas of how to answer it.
A)
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=Net operating income
B)Break-even point (dollars) fixed costs/ contribution margin ratio
Contribution margin ratio= (Price - unitary variable cost)/Price
1) Increase in Unitary variable cost:
Contribution margin= price - new unitary variable cost
2) Variance in income= new sales* contribution margin - increase in fixed costs
3) Prepare the income statement again
C) Break-even point= fixed costs/ contribution margin
