All categories

3 years ago

Which of the following is not relevant when deciding whether or not to discontinue a product line?

Business

1 answer:

FrozenT [24]3 years ago

6 0

Answer:

Fixed costs that can be avoided by discontinuing the line.

Explanation:

Avoidable costs are those costs which can be eliminated by closing or rejecting a decision under evaluation. These costs are mostly variable coasts which vary with the change in activities. More activity more cost, less activity less cost and no activity no cost.

So fixed costs that can be avoidable by discontinuing the project is the only irrelevant cost between the given options.

You might be interested in

Beto Company pays $4.70 per unit to buy a part for one of the products it manufactures. With excess capacity, the company is con

Anastasy [175]

Here, we are decide the best option between making the part or buying the part.

a. Make or Buy Analysis

Particulars Make amount Buy amount

Direct Materials $4.50

Direct Labor $1.00

Overhead (80% of Direct Labor) $0.80

Cost to buy $4.70

Cost per unit $5.70  $4.70

Cost Difference = $5.70 - $4.70

Cost Difference = $1.00

Therefore, the cost difference of making amount over buying amount is $1.00.

b. Because of the difference, Beto should buy the part because its cost is lesser than to make the part.

Therefore, the buying of the part is the best decision.

See similar solution about Analysis

brainly.com/question/23287319

3 0

2 years ago

Absorption and Variable Costing; Inventory Valuation Bondware Inc., has a highly automated assembly line that uses very little d

igor_vitrenko [27]

Answer:

Bondware Inc.

FIFO Inventory Method:

Ending Inventory (60 units):

Absorption Costing = $66,000

Variable Costing = $56,400

Explanation:

a) Data and Calculations:

Unit Production Costs for March:

Direct materials $500

Variable overhead 440

Total variable cost $940

Fixed overhead 160

Total manufacturing

costs per unit $1,100

Calculation of Ending Units of Inventory:

Beginning units 100

Units produced = 500

Units sold = (540)

Ending units = 60

Beginning Inventory, 100 units:

Absorption costing value = $90,000

Variable costing value = $76,000

FIFO Inventory Method:

Ending Inventory:

Absorption Costing = 60 * $1,100 = $66,000

Variable Costing = 60 * $940 = $56,400

5 0

3 years ago

The supply of product X is perfectly inelastic if the price of X increases by _______ and, as a result of the price change, the

konstantin123 [22]

Answer:

c) 10%; stays the same.

Explanation:

Elasticity of supply measures the degree of responsiveness of quantity supplied to changes in price.

Supply is perfectly inelastic if a change in price has no effect on quantity supplied. The quantity supplied remains unchanged despite changes in price.

I hope my answer helps you

7 0

3 years ago

A monopolist that practices perfect price discrimination a. creates no deadweight loss. b. charges one group of buyers a higher

adoni [48]

Answer:

A monopolist that practices perfect price discrimination

a. creates no deadweight loss.

Explanation:

Theoretically, if a monopolist is able to practice perfect price discrimination:

marginal revenue curve = demand curve
consumer surplus = 0
every customer pays the highest amount that they are willing to pay
production level = perfectly competitive level of output

4 0

3 years ago

Revenue on account amounted to 54,000. Cash collections of accounts receivable amounted to $2,300. Expenses for theperiod were 5

Georgia [21]

Answer:

Option (D) is correct.

Explanation:

Given that,

Revenue on account = $54,000

Cash collections of accounts receivable = $2,300

Expenses for the period = $52,100

company paid dividends = $450

Net income for the period:

= Revenue on account - Expenses for the period

= $54,000 - $52,100

= $1,900

Therefore, the net income for the period is $1,900.

8 0

3 years ago

Which of the following is not relevant when deciding whether or not to discontinue a product​ line?

Which of the following is not relevant when deciding whether or not to discontinue a product line?