The main purpose of cost accounting is to find out the cost of the various processes in the business so that selling prices can be fixed appropriately.
<h3>What is cost accounting?</h3>
This is an accounting method that allows companies to find out the cost of various processes and transactions they embark on.
Knowing these costs will enable the company to know the price it can charge on goods so that it can recoup these costs and make profits.
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Answer:
It is Business Impact Assessment (B)
Explanation:
Organizational plans and business decisions are vulnerable to various risks that could hinder them from materializing .
After business decisions have been made at strategic level, there is a need to carry out their business impact assessment to understand the relationship that exist between their impact and their likelihood of occurrence.
Having assessed the impact and likelihood of occurrence, some risks are accepted,transferred while some are completely avoided.
Assuming a company sells 800 units at $16 each, has variable costs of $12 per unit. The after-tax income is $1,200.
<h3>After-tax income</h3>
Using this formula
After-tax income=(Selling units×Selling price)-[(Variable costs×Selling price)+Fixed costs]×(1- tax rate)
Let plug in the formula
After-tax income=(800 units× $16 each)-[(800 units × $12 each)+$1200]×(1-.40)
After-tax income=$12,800-($9,600+$1,200)×0.60
After-tax income=$12,800-$10,800×0.60
After-tax income=$2,000×0.60
After-tax income=$1,200
Inconclusion the after-tax income is $1,200.
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Answer:
the bad debt expense is $900
Explanation:
The computation of the bad debt expense is shown below:
bad debt expense is
= Written off amount + estimated uncollectible amount at the year end
= $650 + $250
= $900
We simply added the above two items so that the amount of the bad debts for the first year could come
Hence, the bad debt expense is $900
Answer:
D
Explanation:
The cost of goods sold would increase by $2
