Answer:
Firstly packaging and labeling costs can be either be charged on variable overheads cost or on selling overheads costs( distribution and marketing cost).
Assuming they are charged on Selling overheads cost:
There are no figures to illustrate the change on inventory cost as a result of moving Labeling and packaging from selling overheads to Direct Costs ( DC) but indefinitely when there are new costs charged to the direct costs of inventory, inventory cost will increase by their exact costs.
If they are charged on Variable overheads then they are already part of inventory cost as is variable cost on Work in process therefore there wont be change in inventory cost just change in direct material.
Explanation:
Answer:
Break-even point in units= 93 units
Explanation:
Giving the following information:
Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas per week are $500 for 2000 units.
After doing market research, the company sets the price per umbrella at $11.
Unitary variable cost= 500/2,000= $0.25
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 1,000/ (11 - 0.25)
Break-even point in units= 93 units
Explanation:
Lack of entrepreneurs will lead to lower jobs, innovative products and a decline in economy. By developing new technology, goods, and services, entrepreneurs help to fuel the economic growth.
Answer:
$200,000
Explanation:
We can define before tax cash flow (BTCF) as the amount of money gotten by an investment after receiving all of the revenues and payment of all bills, but without removing any other noncash items or depreciation, and before any calculation of income tax consequences is been done.
To calculate the Before-tax cash flow if there are no capital improvement expenditures or reversion items this period, simply calculate it by doing this
= PBTCF – DS
= $1,000,000 - $800,000
= $2,00,000.
Answer:
D) Property's fair value at the date of the investment.
Explanation:
When new business is formed from closing the old one, all assets are recorded at fair value.
Thus, all the assets other than cash shall be recorded at their respective fair values in the new business which is a partnership, as the cost or historical value will not display their proportional contributions properly.
Therefore, correct statement is
D) Property's fair value at the date of the investment.
