Based on the selling price of the picture frames and the unit variable costs, the break-even point is 400 picture frames.
<h3>What is the breakeven point?</h3>
This can be found by the formula:
= Fixed costs / (Selling price - Variable costs)
Solving gives:
= 32,000 / (120 - 40)
= 32,000 / 80
= 400 picture frames
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Rent, expenses made by office, telephone expenses, administrative salaries are the items that fall under indirect cost.
Explanation:
Indirect costs are those cost which are not accountable directly. Indirect cost can be either variable or fixed. Indirect cost are also known as overhead expenses.
Rent can act as both direct as well as indirect cost. If rent is given for the plant as well as machinery for a company which is use by manufacturing units directly fall under direct cost but in other way when the rent is given for various official purposes it will fall under indirect cost.
<h2>The customer is motivated to tae the action at the Growth stage of advertising.</h2>
Explanation:
Product life cycle has four stages.
1. Introduction stage:
- Product is introduced in the market
- Sales is booming slowly
- Investment on advertisement is planned
2. Growth stage:
- It is also called early maturity stage
- Here where the product is advertised and product promotion is extensive
3. Maturity stage:
- Sales will be peak
- Product has reached the market
4. Decline stage:
- This occurs when sales is dropped out
- Production will be stopped
Answer: The answer is True. Donna committed Multiple Reimbursement.
Explanation:
Multiple reimbursement is when an employee purchases a particular product or service and tenders different forms of payment receipts for the purpose of profiting from his/her employer/organization.
As in the question above, we can see that Donna Holbrook did not use the initial receipt from the credit card transaction. Instead, she tendered another receipt from the store for the same expense in her expense report. In this case, the cost for the office supplies had already been paid for by the company, but Donna reported a different receipt, hoping it would serve as proof that she in fact incurred the cost herself and therefore be reimbursed.
The company will therefore, be incurring the same cost twice.
