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noname [10]
3 years ago
12

What is true regarding static budgets? Select one: a. It is the budgeted amount used to calculate standard costs. b. It is the b

udgeted amount used to calculate the actual costs. c. It is also called moving or nonstationary budgets. d. All of the above
Business
1 answer:
defon3 years ago
3 0

Answer:

b. It is the budgeted amount used to calculate the actual costs.

Explanation:

Static budget is the budget which remains the same even if there is some changes made but the flexible budget do not remain the same.

Moreover, the static budget is the main budget that used to prepare the standard cost by considering the budgeted activity level

Therefore it is the budget in which the budgeted amount should be considered in order to determine the actual cost that helps to make the flexible budget

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Merton's Toothpaste has been the leader of dental care products for about 40 years. However, this company relied too long on its
Crank

Answer:

c) Core Rigidity

Explanation:

Core rigidity is the just like the opposite of a company's competency. Core Rigidity is caused by over reliance on success. As a firm relaxes on it's advantages or present success without looking for ways to improve, it's competitors are out there looking for ways to get better thereby having a greater competitive advantage.

For example here, Merton's toothpaste case here is of core rigidity because they rested on their competency for too long without sourcing for ways to improve while other personal hygiene companies improved and gained a great competitive advantage over Merton's Toothpaste.

7 0
3 years ago
Read 2 more answers
The following is correct statement related to the activity-based costing and traditional costing system, except:
kati45 [8]
The answer is D. Please don't discriminate if I'm wrong.
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4 0
3 years ago
A customer sells short 100 shares of DEF stock at $82 per share. The stock falls to $71, at which point the customer writes 1 DE
Hatshy [7]

Answer:

16 points

Explanation:

Customer sold stock short for $82 per share

Then, customer sold Sept 70 at $4

If short put is then exercised, the customer is obligated to buy the shares back at $70.

Net cost of the customer is $66 per share for the stock, therefore

Customer gains = 82 sale proceeds - 66 cost basis = 16 points.

3 0
4 years ago
LLCs were created to protect business owners from liabilities while
uysha [10]

The third option.

Losses can be used to offset taxes, and earnings are taxed.

5 0
3 years ago
The ninth worker adds 25 units to total production. The tenth worker adds 22 units to total production. The company has:________
Anit [1.1K]

Answer:

Diminishing returns

Explanation:

A firm producing widgets (term for a generic good) has two factors of production. The factory and labour. The capacity of the factory is fixed, and the marginal cost (MC) of labour is the same (i.e. each new worker will cost the same).

There are two stages to how MC is affected.

1. Increasing returns (MC goes down)  

As output begins to increase, the large manufacturing  processes/equipment  still not fully utilised means and the additional labour  can be productive as they can always use the equipment to its full potential due to which the MC is relatively low.

2. Constant returns (MC goes sideward)

At this point, labour is producing its optimal output per unit. The marginal cost  is therefore at its lowest.

3. Diminishing returns (MC goes up)

The more labour that is employed, the less marginal output it is able to produce.  This could be a result of too many people to efficiently operate/ rotate use of  machinery. The cost increases more and more to generate an extra unit of  output, because of labour exhibiting diminishing returns in the short run.

In this question, the 10th worker has added 22 units which is 3 units less than the number of units added by the 9th worker, thus the company is producing less marginal output for each worker. so based on the above discussion it can be concluded that the company has Diminishing returns.

7 0
4 years ago
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