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Vlad [161]
4 years ago
5

LO 2.3Which of the following methods of cost estimation relies on only two data points?

Business
1 answer:
denis23 [38]4 years ago
7 0

Answer:

the high-low method

Explanation:

The high-low method -

It is the method used by comparing the total cost of the highest level of activity with the lowest level of activity , is referred to as the high - low method.  

This method is used in order to separate the fixed and variable costs for a limited amount of data .

Hence , this method compare the data of two points .

Therefore , the correct option from the given options is the high - low method.

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What is a “work point”?
Alja [10]

Answer:

A work point is an independent entity whose location is defined in space.

Explanation:

Work points may be placed or projected onto part faces, linear edges, or onto an arc or circle. Work points can be constrained to the center points of arcs, circles, and ellipses.

4 0
3 years ago
Kirk Furniture factors $800000 of receivables to Sulu Factors, Inc. Sulu Factors assesses a 4% service charge on the amount of r
Simora [160]

Answer:

Explanation:

The journal entry is shown below:

Cash A/c Dr $768,000

Service Charge Expense A/c $32,000

         To Accounts Receivable A/c $800,000

(Being the cash is received and the remaining balance is debited to the cash account )

The computation of the service charge expense is shown below:

= Accounts Receivable  × service charge percentage

= $800,000 × 4%

= $32,000

6 0
4 years ago
A vice president of operations wants to evaluate the impact of reducing manufacturing expenses on the firm's return on assets. W
frosja888 [35]

Available Options Are:

a. Cost of Goods Sold

b. Net Profit Margin

c. None of these

d. Asset Turnover

Answer:

Option B. Net Profit Margin

Explanation:

The increase or decrease in cost of Goods sold can not tell whether the return on assets has increased or decreased becuase it would only tell that the expense are decreased or increased not the profit. Which means it only tells one side of the story hence Option A is incorrect.

Option B is correct because it talks about the profit. If the manufacturing cost has been decreased then the it must increase the profit. Because if the profits has increased then the return on asset will increase. Hence the Option B is correct here.

Option D is incorrect because asset turnover formula is:

Asset Turnover = Sales / Total Assets

The decrease in manufacturing cost will not increase the sales because sales and total assets are independent of manufacturing expenses hence the Option D is incorrect.

3 0
3 years ago
Cassandra's Boutique has 2,100 shares outstanding at a market price per share of $26. Sally's has 3,000 shares outstanding at a
Schach [20]

Answer:

E. $60,500

Explanation:

The value of Cassandra's Boutique to Sally's = Cash paid for the acquisition + Incremental cost = $58,000 + $2,500 =  $60,500

Therefore, the value of Cassandra's Boutique to Sally's is $60,500.

7 0
3 years ago
An investment banker agrees to a firm commitment offering of two million shares of Ace stock. The offer price is set at $55 and
balandron [24]

Answer:

loss of $ 1,400,000.00

Explanation:

Amount of share : two million:

offer price per share: $55

selling price per share: $53.80

Loss per share: $1.20

Total loss= $1.2X2,000,000= ($2,400.000.00)

Earning from spread: 0.5x2,000,000.00 =$1,000.000.00

Net earning: (2,400,000.00)+$1,000,000.00=($ 1,400,000.00)

loss of $ 1,400,000.00

8 0
3 years ago
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