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loris [4]
2 years ago
12

Rachel is the managing director of LivviPro Inc., a life insurance agency. She believes in using various disciplines such as soc

iology, psychology, anthropology, and economics to understand the employees in the organization. The agency uses employee profiles in its hiring process. This practice is most consistent with the _____. a. administrative principles approach b. quantitative perspective c. behavioral sciences approach
Business
1 answer:
Dmitriy789 [7]2 years ago
6 0

Option C

This practice is most consistent with the behavioral sciences approach

<u>Explanation:</u>

The behavioral science strategy to management converges on the psychical and sociological manners (character, impulses, group dynamics) that impact worker play. Behavioral science practices analysis and the experimental approach to ascertain and learn performance in the workplace.

Behavioral science in the business management context is a particular utilization of this area and manipulates several particular kinds of behavioral investigations. This incorporates notions such as erudition processing, relations and urge, and organizational advancement.  Organizational advancement is a continuing, methodical manner of realizing practical organizational variance.

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Answer:

                       Submarine Company

Income statement under absorption costing

                                                                        $                 $

Sales (1,800 units x $150)                                              270,000

Less: Full cost:

Direct material (2,000 units x $40)             80,000                                                                                                                                                                                                                                              

Direct labour (2,000 units x $50)                100,000

Variable overhead (2,000 units x $10)        20,000

Fixed overhead (2,000 units x $20)            <u>40,000</u>

                                                                       240,000

Less: Closing stock (200 units x $120)        <u>24,000  </u>      <u>216,000</u>

Gross profit                                                                         54,000

Less: Selling and administrative expenses:

Variable selling and administrative                                    36,000

Fixed selling and administrative expenses  <u>15,000</u>          <u>51,000</u>

Net profit                                                                                3<u>,000</u><u>  </u>  

                             Submarine Company      

Income statement using marginal costing

                                                                         $                  $                

Sales (1,800 units x $150)                                              270,000

Less: Variable costs:

Direct material (2,000 units x $40)             80,000                                                                                                                                                                                                                                              

Direct labour (2,000 units x $50)                100,000

Variable overhead (2,000 units x $10)        <u>20,000</u>

                                                                       200,000

Less: Closing stock (200 units x $100)        <u>20,000</u>        

                                                                       180,000

Add: Variable selling and administrative     <u>36,000</u>       <u>216,000</u>

Contribution                                                                       54,000

Less: Fixed cost:

Fixed production cost                                    40,000

Fixed selling and administrative expenses  <u>15,000</u>          <u>55,000</u>

Net loss                                                                               <u> (1,000)   </u>    

                                 Profit reconciliation statement

                                        Closing stock         Net profit/loss

                                                 $                           $

Absorption costing               24,000                 3,000

Less: Marginal costing          <u>20,000</u>                 <u>(1,000)</u>

Difference                             <u>4,000   </u>                  <u> 4,000</u>

The difference of $4,000 in net profit is as a result of $4,000 difference in closing inventory.

                                     

Explanation:

In marginal costing, variable costs are deducted from sales in order to obtain the contribution margin. Net profit is calculated by deducting fixed costs from the contribution margin. Closing stock is valued at marginal cost per unit in marginal costing. Closing stock is the difference between production units and sales units. Marginal cost is the sum total of all variable costs.

In absorption costing, full costs are deducted from sales in order to obtain the gross profit. Net profit is the difference between gross profit and selling and administrative expenses. Closing stock is valued at full cost in absorption costing. Full cost is the aggregate of variable costs per unit and fixed costs per unit.

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2 years ago
Which one of the following is a primary benefit of budgeting? It removes the ‘plan ahead’ from lower level managers so that they
nikklg [1K]

Answer:

It provides definite objective for evaluating performance

Explanation:

Budgeting: It can be defined as the process of deciding an efficient way of spending money.

A budget is a financial plan which shows the estimation of income and expenditure over a specified future period of time. A budget can be made by an individual, business organzations or government of a country.

A budget can either be surplus or deficit.

1. A surplus budget is a budget in which the estimate of income is more than expenditure.

2. A deficit budget is a budget in which the estimate of expenditure is more than income.

Benefits of budgeting includes;

1. It provides definite objectives for evaluating performance.

2. It requires all levels of management to plan ahead on a recurring basis.

3. It facilitates the coordination of activities.

6 0
3 years ago
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