Answer:
Unitary cost= $46.4 per unit
Explanation:
Giving the following information:
Direct materials $9.60 per unit
Direct labor $19.60 per unit
Overhead costs for the year:
Variable overhead $9.60 per unit
Fixed overhead $121,600
Units produced 16,000 units
Under absorption costing, the fixed overhead is allocated to the cost of the product. Therefore, we need to calculate the unitary fixed overhead.
Unitary fixed overhead= 121,600/16,000= $7.6
Now, we can calculate the unitary cost of production:
Unitary cost= direct material + direct labor + total overhead
Unitary cost= 9.6 + 19.6 + 9.6 + 7.6= $46.4 per unit
Explanation:
it refers to the use of services for software development, where a service is an autonomous, platform agonstic software component that operate within an ecosystem of services
Answer:
a) true
Explanation:
The Enterprise resource planning system is a single database that helps to collect data and feed into applications with a motive to support the various business activities like - purchases, production, distribution, sales, marketing, finance, human resource, information technology, etc
The aim of this system is to conduct each and every business activity in an effective and efficient manner so that each one can share the database so that tracking could be done that helps to reduce the time and cost.
Answer:
at low levels of output, AFC will be high, while at high levels of output, MC will be high as the result of diminishing returns.
Explanation:
In Economics, the law of diminishing marginal utility states that as the unit of a good or service consumed by an individual increases, the additional satisfaction he or she derives from consuming additional units would start decreasing or diminishing as the units of good or service consumed increases.
The short-run average total cost (ATC) curve of a firm will tend to be U-shaped because at low levels of output, average fixed cost (AFC) will be high, while at high levels of output, marginal cost (MC) will be high as the result of diminishing returns.
This ultimately implies that, the average fixed cost (AFC) will be high at small (low-level) output rates while marginal cost (MC) will be high at large (high-level) output rates due to diminishing marginal returns.
As a result of the law of diminishing marginal returns, a business firm would experience some rising per unit costs in the short-run.
In conclusion, an increase in the level of output for a business firm will eventually lead to an increase in average total cost (ATC) and marginal cost (MC) due to the law of diminishing marginal returns.
Answer:
An increase in the production leads to decline in the price. Producers are likely to supply more at the lower price or the existing price, considering the increase in production. If there is a 20 percent increase in the production, then it tends to increase the supply. An increase in supply will have a negative impact on price.
The effect of the increase in production on price is shown in the above figure. A twenty percent increase in the production causes an increase in the supply. Excessive supply causes a reduction in the price. Hence, when the supply increases from P1 to Q2, the price decreases to P2 from P1.
