Answer:
A. Purchasing power parity
Explanation:
Purchasing power parity is a techniques that is used to determine the relative value or the exchange rates of currencies.
Eileen is using the purchasing power parity because she is comparing the cost effectiveness of buying a particular product in different countries using the dollar. The exchange rates of the currency of country X and country Y against will determine which country she will buy from.
In a nutshell, Purchasing power parity is a measurement of two currencies by taking the cost of living and inflation differences into account.
Answer:
$248,500
Explanation:
Variable overhead applied to production = Actual units produced * Variable overhead hours * Variable overhead hourly rate = 7,100 * 5 * $7 = $248,500
Therefore, the amount of variable overhead that Match Point applied to production is $248,500.
Answer:
d. extra shipping cost may be incurred.
Explanation:
Stockout means that a production company has no inventories to produce goods, which is a bad thing that can happen to a company. It means that production has stopped and customers cannot be supplied with order they have made.
There are several effects of stock out on a business, one of which is extra shipping cost may be incurred. A customer that is not ready to wait for his or her order to be met may have the item backorder expecially If the order was part of a larger delivery, then there would be backorder which will require special transportation.
Customers may also cancel his or her order and such customer is lost forever. This customer may also inform other customers thereby spreading bad news about the company which may reduce further sales of the company in the future.
When a company losses a customer as a result of stock out, or is no longer placing an order, a cost(cost of finding a customer a customer to replace the order which would have been purchased) is associated with that which will be borne by the vendor or the company.
Answer and Explanation:
The adjusting entry is as follows:
Supplies expense Dr $2,200
To Supplies $2,200
(being the supplies expense is recorded)
Here the supplies expense is debited as it increased the expenses and credited the supplies as it decreased the assets
The computation is
= Opening supplies + purchased - closing supplies
= $1,500 + $2,900 - $2,200
= $2,200
Using High-Low method:x 1 = 1,125 ( low units ), x 2 = 3,000 ( high units )y 1 = 38,000 ( low cost ), y 2 = 59,000 ( high cost ).Formula is: y = m x + b, where b represents Fixed costs. m = ( y2 - y1 ) / ( x2 - x1 ) = ( 59,000 - 36,000 ) / ( 3,000 - 1,125 ) = 11.259,000 = 11.2 * 3,000 + bb = 59,000 - 33,600 = 25,400y = 11.5 x + 25,400Answer: Total fixed costs are $25,400.
