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aalyn [17]
3 years ago
12

When comparing absorption costing and variable costing, if units produced are units sold, what is the effect on net operating in

come?
Business
1 answer:
11111nata11111 [884]3 years ago
8 0

Answer:

The Net Operating income will be the same for both methods.

Explanation:

Net Operating income under absorption costing and variable costing methods usually differ because of existence of inventory.

Fixed overheads are deferred in Inventory when using absorption costing. Meaning that a higher income is obtained under absorption costing than variable costing when there is inventory and a lower income under absorption costing than variable costing.

When units produced are units sold, there is no inventory. Therefore, the Net Operating income will be the same for both methods.

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Perfect Plumbing Corporation currently manufactures a valve for use in water pumps that it produces for sale. The company is con
andriy [413]

Answer:

Perfect Plumbing Corporation currently manufactures a valve for use in water pumps that it produces for sale. The company is considering purchasing the valves from an outside supplier rather than manufacturing them. Which of the following costs is not relevant to the decision?

The cost of direct material required to make the valve.

Explanation:

Since perfect plumbing corporation intended to buy rather than to manufacture then the cost of direct material required to make the valve is none of there concern. The would only purchase and sell at price that suits them

7 0
4 years ago
The people in an economy have $10 million in money. There is only one bank that all the people deposit their money in and it hol
pogonyaev

Answer: d. 20

Explanation:

The Money multiplier is the number that new deposits are multiplied with to find out their total effect on the banking system.

It is calculated by dividing 1 by the required reserve ratio.

Required reserve ratio = 0.5/10

= 5%

Money Multiplier = 1/5%

= 20

7 0
3 years ago
The financial statement that reports the changes in the retained earnings and common stock for a period of time is known as the.
Tamiku [17]

The statement of owner's equity—also called the statement of retained earnings—shows the change in retained earnings between the start and end of a period (e.g., a month or a year). The record reflects a company's solvency and financial position.

<h3>What are the three financial statements?</h3>

The earnings report , record , and statement of money flows are required financial statements. These three statements are informative tools that traders can use to research a company's financial strength and provide a quick picture of a company's financial health and underlying value.

What is the statement of retained earnings ?

Reports the way that net and the distribution of dividends affected the financial position of the company during the accounting period. the sum of the share of net income which is not paid to the shareholder as dividend. the aim of the retained earnings is reinvestment

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8 0
1 year ago
Key inputs to the verification process include?
Citrus2011 [14]

The purpose of verification, as a normal motion, is to become aware of the faults/defects introduced at the time of any transformation of inputs into outputs.

Verification is a pleasant manage technique that determines if a machine meets its gadget-stage necessities. Inspection and demonstration is the principle testing technique used in Verification.

The Verification procedure offers the evidence that the gadget or machine detail plays its meant capabilities and meets all performance requirements listed inside the machine overall performance specification and functional and allotted baselines.

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5 0
2 years ago
According to Ari Wallach, what is short-termism, and why is it a problem?
Ostrovityanka [42]

Answer:

<em><u>short-termism </u></em>

Is the acting upon short term vision of the needs and problems that must be addressed. It is a problem because the vision that is important is the Long path vision.

<em><u>What is “longpath” and why did Wallach develop the concept?  </u></em>

Is a concept that combines long term vision and goal oriented. Wallach develop that concept as he did not find a term that frame what is intended in the long run that was goal oriented.

<em><u>Briefly discuss each of the three ways of thinking that Wallach describes.  </u></em>

Transgenerational thinking: Thinking the impact of your actions in the future generations to come.  

Futures thinking: The future is not related only with better technology but with how will human relationships, moral, art and feelings like compassion will evolve.

Telos thinking: This is an invitation to think having in mind what is the "ultimate aim" of our actions as little of they might be. It is important to raise the question: how this action that I am doing now will impact or change the future in 20,50 or 100 years to come.

<em><u>How does Wallach relate the future to a part of speech? </u></em>

Wallach make a link between Thomas Khun quote: “People don’t shift unless they have a vision of what it is they’re shifting to.” an Martin Luther King Speech of "I Have a Dream" he says that that speech is successful as it shows what is the vision of what a dream must looks like

3 0
3 years ago
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