Answer:
The correct answer is True.
Explanation:
Whenever a conflict arises within the classification of projects between the expected monetary value and the standard deviation, the coefficient of variation is used to try to solve the problem. For this reason, it is concluded that the coefficient of variation is a standardized measure of risk.
Answer:
Cost of good manufactured= $1507100
Explanation:
To calculate the cost of manufactured goods we need to use the following formula:
Cost of good manufactured= Beginning work in progress+ direct materials of the period + direct labor + manufactured overhead - ending work in progress
Beginning work in progress= 72400
Direct materials = beginning inventory + purchase - ending inventory= 519800
Direct labor= 226700
Manufactured overhead= 775800
Ending work in progress= 87600
Cost of good manufactured= 72400 + 519800 + 226700 + 775800 - 87600= $1507100
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.
Answer: the correct answer is $169,000
Explanation: the warranty expenditures during the year is $195,000 minus the increment in the liability account $26,000 equals $169,000.
