1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
SSSSS [86.1K]
3 years ago
13

The ultimate goal of any product costing system for a manufacturer is to determine the cost of producing one unit of product.

Business
1 answer:
Olenka [21]3 years ago
7 0

Answer:

The correct answer is True.  

Explanation:

A cost accounting system must contemplate the need for the information obtained from it to be of real utility to the company.

A well-designed cost system will offer the assurance that the information provided to management will be a more effective means of making decisions.

The primary objective of any cost accounting system is the determination of the unit cost of production; consequently, the unit cost of production represents the means by which the entity's management is going to be used to achieve the following objectives:

  • Plan and control the production of articles.

For the manufacture of an article raw materials of different quality and price can be used, personnel with greater or lesser degree of specialization and productive machinery of different capacity, class and acquisition cost.

The method of production that the company implants and the most convenient and profitable cost for the company will be the one that allows to manufacture items of the highest quality and at the lowest possible unit cost.

  • Plan and control the distribution or sale of items

A good cost system that provides timely and secure data of the unit production cost, will allow the company administration to structure satisfactory sales prices that reasonably guarantee the obtaining of profits

  • Make the administration of the company's activities more efficient.

The information contained in the financial statements of a company is a fundamental tool for the administration to carry out its activities.

When the cost system contemplates the need to present to the administration an analytical and not only global information, the Financial Statements may include very valuable data related to profit margins by type of items, investment amounts wages and salaries and other manufacturing expenses for each group of manufactured satisfiers, and therefore a much more accurate picture of the activities, the company that will allow evaluation, and operate changes in those areas that require them.

You might be interested in
Identify the uses of generally accepted accounting principles (GAAP). A. Independent accountants use GAAP to determine the amoun
lora16 [44]

Answer:

The correct option is;

B. Companies use GAAP when preparing financial statements

Explanation:

Generally Accepted Accounting Principles (GAAP) are the guidelines with regards to the standards, principles, practices and procedures of financial statement compilation by accountants issued by the Financial Accounting Standards Board (FASB). It is a requirement that all publicly quoted companies make use of GAAP for their financial compilation.

GAAP comprises of the generally accepted accounting records reporting and recording methods as well as policy board standards of accounting procedures.

7 0
3 years ago
The option of sticking with the current business lineup makes sense when
worty [1.4K]

Answer:

The correct answer is the option A: the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.

Explanation:

To begin with, the fact that a company faces the dilemma between continue with the current business lineup or change it in order to begin producing a new one by starting from zero then a lot of variables must be taken care of and considered, that is, that at the moment of making the final decision the managers must understand the opportunity costs that can affect the organization and moreover the benefits that the actual lineup makes. That is why, that at the time of sticking with the current business lineup it makes sense to continue with the current one when the company's present business offer attractive growth opportunities and can be counted on to create economic value for shareholders.

8 0
3 years ago
The Akron Slugger Company produces various types of wooden baseball bats. It has calculated the average cost per unit of a produ
Naddika [18.5K]

Answer:

\arge\boxed{\large\boxed{\$ 117,788}}

Explanation:

Assume the <em>cost</em> equation to be:

                Cost(x)=Fixed\text{ }costs+Variable\text{ }costs\\\\Cost(x)=A+Bx

Where x is the number of units (wooden baseball bats) produced.

The <em>average cost per unit of production level</em> is the total cost divided by the number of units produced:

              Average\text{ }cost(x)=Cost(x)/x\\\\Average\text{ }cost(x)=(A+Bx)/x\\

You are given that the <em>average cost per unit of a production level of 7,700 bats is $14</em>, then:

             14=(A+7,700B)/7,700

You are also given that the <em>fixed costs</em> are <em>$22,500</em>, thus A = 22,500. Hence, you can substitute the value of A in the previous equation and find B:

              14=(22,500+7,700B)/7,700\\\\14\times 7,700=22,500+7,700B\\\\107,800-22,500=7,700B\\\\85,300/7,700=B\\\\B=11.08

Now you can complete the cost equation:

             

               Cost(x)=\$ 22,500+11.08x

And to predict the total costs for 8,600 bats you must subsitute x with 8,600 in the previous equation:

             Cost(8,600)=\$ 22,500+11.08(8,600)=\$ 117,788

5 0
3 years ago
Ivory will be giving a presentation for her company to a group of potential clients visiting from Germany, and she is deciding w
VladimirAG [237]

Answer:

A speaker's personal appearance should be consistent with the occasion of the speech.

Explanation:

First impressions and the appearance of a speaker are  important because generally an audience forms an impression of a speaker  before any words are said.

4 0
3 years ago
Production estimates for August for Jay Company are as follows:
dimaraw [331]

Answer:

c.$1,080,000 for A; $648,000 for B

Explanation:

For computing the total direct material purchase first we have to find out the production units which are shown below:

As we know that

Production units = Ending inventory units + sales units - beginning inventory units

= 9,000 units + 75,000 units - 12,000 units

= 72,000 units

Now the total direct material purchase for Material A and Material B is

For Material A

= 72,000 units × 3 lbs × $5 per lb

= $1,080,000

For Material B

= 72,000 units × 0.5 lbs × $18 per lb

= $648,000

Therefore, the third option is correct

4 0
3 years ago
Other questions:
  • The U.S. dollar exchange rate increased from ​$0.89 Canadian in June 2009 to ​$0.96 Canadian in June 2010​, and it decreased fro
    5·1 answer
  • As sales manager, Joe Batista was given the following static budget report for selling expenses in the Clothing Department of So
    14·1 answer
  • Keeping in mind what you did in the lab this week, do you think that determining the volumes of your solid samples (rubber stopp
    7·1 answer
  • According to the New York Times, during the mortgage crisis real estate brokers had an incentive to steer borrowers to higher-co
    13·1 answer
  • Firm A has earnings-per-share of $3.00. Firm B has earnings-per-share of $2 and a price-per-share of $30. Using the Price/Earnin
    12·1 answer
  • Sound Tek Inc. manufactures electronic stereo equipment. The manufacturing process includes printed circuit (PC) board assembly,
    7·1 answer
  • Xây dựng lực lượng bán hàng của công ty vinamilk
    15·1 answer
  • Will mark BRAINLIEST!!!
    7·1 answer
  • Which type of budget indicates more expenses than income?
    6·1 answer
  • The GATT agreement was replaced by the World Trade Organization.
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!