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3 years ago

True or false: it doesn’t matter whether you compute marginal cost using total cost or variable cost.

1 answer:

8 0

It is TRUE. Marginal cost is the amount added when there is an additional unit of product or service produced. Meanwhile, the total cost, as defined in accounting, is composed of the total fixed costs and its total variable costs. Fixed cost is not affected by the number of output a company produced. Thus it won’t affect the marginal cost.

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Value Electronics, Inc. started its operations on January 1, 2019.

elixir [45]

Answer:

The first step in operating cycle would be to purchase inventory from vendors.

The correct answer is D

Explanation:

The steps involved in operating cycle includes:

1. Purchase of inventory from vendors

2. Sale of goods to customers

3. Recording of sales in accounts

4. Collection of cash from customers

3 0

3 years ago

Which of the following is not a disadvantage to cash advances on a credit card? a. Cash advances are similar to loans in that th

Dominik [7]

The statement that is not a disadvantage to cash advances on a credit card is that (A) Cash advances are similar to loans in that they need to be paid back with interest. When you ask for a cash advance, it is a service provided by most credit card and charge card issuers. This will become a credit limit.

7 0

3 years ago

Read 2 more answers

Aside from advertising, how can monopolistically

kobusy [5.1K]

This type of marketing is known as imperfect competition as many companies are selling similar products, but the products arenâ€™t similar enough to compete with each other in the market. One way that a company in this type of market can get the most for their money is by producing goods that have a marginal revenue that equals the marginal cost. The company also can continue to develop new products in order to keep us with the demands of its customers. In order to increase the demand for their product, the company may improve its quality and design in order to make it more useful for its customers.

6 0

3 years ago

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. F

masha68 [24]

Answer:

Closing Units = (710 units - 490 units)= 220 units

a) FIFO : closing inventory = $14,040

Mar 18 purchase 20 *$62 =$1,240

Mar 25 purchase 200 *$64 = $12,800

b) LIFO : closing inventory = $12,780

Mar 1 opening = 90 * $52 =$4,680

Mar 18 purchase = 110 * $62 = $6,820

Mar 25 purchase = 20*$64 =1,280

c) Weighted Average Method (WAM) :

WAM= (Opening cost + purchases cost)/(opening units +units purchased)

= ($7,800+$14,250)/(150+250) = $55.125 cost before Mar 9 sale

WAM(after the first sale) = ($4,961.25 +$6,820 + $12,800)/(90+110+200)

= $61.45

Closing Inventory = $61.45*220 =$13,519

d) Specific Identification :Closing Inventory = $13,070

Mar 01 opening = 60 *$52 =$3,120

Mar 5 Purchase = 30*$57 =$1,710

Mar 18 Purchase = 40*$62 =$2,480

Mar 25 Purchase = 90*$64 =$5,760

Explanation:

The Question is incomplete. I have provided the missing part of the question below.

Date Activities Units Acquired at Cost Units Sold at Retail

Mar. 1 Beginning inventory 150 units $52.00/unit

Mar. 5 Purchase 250 units $57.00/unit

Mar. 9 Sales 310 units $87.00/unit

Mar. 18 Purchase 110 units $62.00/unit

Mar. 25 Purchase 200 units $64.00/unit

Mar. 29 Sales 180 units $97.00/unit

Totals 710 units 490 units

5 0

3 years ago

Ted's Manufacturing makes two products, B and C. They each take 2 direct labor hours and 2 machine hours to produce. A batch of

Delvig [45]

Answer:

Explanation:

Based on the scenario being described within the question it can be said that the statement that is most likely true is that the product cost of product B will be higher under ABC than under traditional costing. This is because Activity-based costing (ABC) bases their overhead costs on the actual consumption by each while traditional costs overhead is applied based on the amount of machine hours consumed. Therefore since product B is characterized as having lots of consumption then it's product cost will be higher under ABC costing.

3 0

3 years ago