Answer:
The correct answer is letter "A": is a systematic way to link an indirect cost or group of indirect costs to cost objects.
Explanation:
Cost allocation is the method of assigning costs to cost objects. Cost objects are items or activities that are preferable to have their own costs allocated such as a product or a department within a firm. Cost allocation is a measure of profitability at the moment of evaluating a subsidiary. It is mainly used for financial reporting purposes.
Answer:
Joe's Pizza Parlor
The highest number of workers that Joe will hire if he must pay each one $35 a day is
4 workers.
If he wants to maximize his profits without satisfying customers' demand, Joe can choose to work with 2 or 3 workers. However, he can renegotiate the worker's wages downwards.
Explanation:
a) Data and Calculations:
Price of pizza = $5
Wage per worker = $35/day
Number of Workers 0 1 2 3 4 5
Pizzas Baked Per Day 0 12 18 24 30 32
Total revenue 0 60 90 120 150 160
Marginal revenue 0 60 30 30 30 10
Marginal cost of labor 0 35 70 105 140 175
Profit 0 25 20 15 10 -15
The consumer surplus associated with the consumption of furniture increases. Wood is an input in the production of furniture therefore it constitutes the cost of production, the decrease in the price of wood would therefore mean a decrease in the production cost. A decrease in the cost of production in turn causes a decrease in the buying price of furniture and therefore, consumer surplus increases.
Answer:
$53,700
Explanation:
Direct manufacturing cost = (Direct material per unit + Direct labor per unit) * Units produced
=($5.20 + $3.75) * 6,000 units
=$8.95 * 6,000
=$53,700
The total amount of direct manufacturing cost incurred is closest to $53,700
Answer:
When someone starts their own business, they do it because they firmly believe that they will succeed. Most of the time they are not thinking about what will happen if things do not work as planned. I believe that people that are afraid and believe that the possibility of failure is large, will never start their own business. Entrepreneurship is something that not everyone can do, and it takes a lot of guts to do it.
