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3 years ago

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

Business

1 answer:

denis23 [38]3 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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Kamath-Meier Corporation's CFO uses this equation, which was developed by regressing inventories on sales over the past 5 years,

charle [14.2K]

Answer:

$71.5

Explanation:

Inventory forecast is a way of predicting the volume of inventory required to fulfill future orders based on the existing production capacity and other plans relating to production

equation for forecasting inventory = $22 + 0.125 sales

Current sales = $300 million

Annual sales growth rate =32%

sales for next year = 300 + (300*32%)

300 + 96= $396 million

Applying the equation

Inventory = $22 + (0.125*396)

$22 + $49.5 = $71.5 million

7 0

3 years ago

On January 1, 2021, Algerian Delivery had 100,000 shares of common stock outstanding. The following transactions occurred during

defon

Answer:

Algerian Delivery's basic earnings per share for the year ended December 31, 2021 is $3.01

Explanation:

In order to calculate Algerian Delivery's basic earnings per share for the year ended December 31, 2021 we would have to make first the following calculations:

Net Income = $298,750

Calculation of Weighted Average of Number of Equity Shares:

Outstanding on Jan 1 = 100,000*12/12 = 100,000

Less: Treasury Stock 3,100*10/12 = (2,583)

Sold Treasury Shares 3,100*3/12 = 775

New Shares Sold 12100*1/12 = 1,008

Therefore, Weighted Average of Equity Shares during the year = 100,000 - 2,583 + 775 + 1,008 =99,200

Therefore, Basic Earnings per Share = Net Income/Weighted Average of Equity Shares outstanding during the year

= $298,750/99,200 = $3.01

Algerian Delivery's basic earnings per share for the year ended December 31, 2021 is $3.01

6 0

3 years ago

Cute Camel Woodcraft Company is considering a one-year project that requires an initial investment of $500,000; however, in rais

vfiekz [6]

Answer:

The correct answer is "32.076%".

Explanation:

Given:

Initial investment,

= $500,000

Cash inflows,

= $500,000

The floatation cost will be:

= $500,000\times 6 \ percent$

= $30,000$ ($)

The total cost will be:

= $Initial \ investment+Floatation \ cost$

= $500000+30000$

= $530000$

hence,

The rate of return will be:

= $\frac{Inflows}{Cost} -1$

= $\frac{700000}{530000} -1$

= $\frac{700000-530000}{530000}$

= $0.32076$

= $32.076$ (%)

8 0

3 years ago

Who wants 100 points

atroni [7]

Answer:

me pls

Explanation:

5 0

3 years ago

Read 2 more answers

Tania starts a bookstore with her friend. However, owing to other commitments, Tania is unable to help with the daily operations

zheka24 [161]

Answer:

Tania is a "limited partner ".

Explanation:

A limited partner, commonly recognized as either a silent partner, seems to be an individual and therefore not just a week as a well-to-day corporate administrator. The responsibility of a limited partner could never increase the total spent by that department in the organization.
For example, this type of relationship seems to have at least a single special partner but each restricted partner.

7 0

3 years ago