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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.

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Match the example with the type of individual difference and advantage it shows.
inna [77]

Answer:

Sergey likes to play soccer in his free time = Hobbies

Scott's parents moved from the U. S. to Australia = Background

Bihn wants to make enough money to send his children to school = goal

Yolanda us outgoing and able to make friends quickly = Ability

Cheyenne is currently working as a junior dance teacher in a big studio, to learn what she would need to know when she opens her own someday = experience

Melanie cares about fitness and the outdoors so she often participates in active outdoor activities like biking and mountain climbing = Lifestyle

Amandos favourite subject in school is world history = interest

3 0
3 years ago
Bonnie is writing a cover letter for a job application. She has written the introduction describing her strengths. However, she
Anna35 [415]
They should talk avout why they should be jired for the job and why thw want the job.
6 0
3 years ago
Read 2 more answers
Tercer reports the following for one of its products. Direct materials standard (4 lbs. $2 per lb.) Actual direct materials used
Natalka [10]

Answer:

Results are below.

Explanation:

Giving the following information:

Direct materials standard (4 lbs. $2 per lb.)= $8 per finished unit

Actual direct materials used (AQ)= 300,000

Actual finished units produced= 60,000

Actual cost of direct materials used= $535,000

<u>To calculate the direct material price and quantity variance, we need to use the following formulas:</u>

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (2 - 1.783)*300,000

Direct material price variance= $65,100 favorable

Actual price= 535,000 / 300,000= $1.783

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (4*60,000 - 300,000)*2

Direct material quantity variance= $120,000 unfavorable

6 0
3 years ago
At its $60 selling price, Atlantic Company has sales of $15,000, variable manufacturing costs of $4,000, fixed manufacturing cos
Kay [80]

Answer:

$28

Explanation:

Step 1:

If a company sells a product at $60 each and makes a sale of $15,000, the number of units of items produced is

$15,000 ÷ $60 = 250 units.

Step 2:

To calculate the company's contribution margin per unit,

we have, (unit selling prices - unit production cost)

unit selling price is #60

unit cost of production is (total cost of prodcution ÷ number of units)

total cost of production is $4,000+ $1,000+ $2,000+ $1,000 = $8000

Unit cost of production is $8000 ÷ 250 = $32

i.e it takes $32 to manufacture 1 product.

Contribution margin = $60 - $32

                                 = $28

∴ the contribution margin is $28.

Cheers.

6 0
3 years ago
The quantity of a good demanded in a given time period increases as the price falls, which is known as:_________
Illusion [34]

Answer:

B) The law of demand

Explanation:

The law of demand states that the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.

Opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives.

Ceteris paribus means all things being equal.

Says law says supply creates its own demand.

I hope my answer helps you

4 0
3 years ago
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