Answer:
D) only revenue is recorded each time a sale is made.
Explanation:
When a company uses a periodic inventory system, the cost of goods sold is calculated only after the physical inventory count is completed. This physical count is done periodically and may happen once every few months or even once a year.
The periodic system is obsolete nowadays and cheaper technological solutions make it easier for companies to use a perpetual inventory system which is much better in every possible way.
Answer:
(B) $5,000 favorable.
Explanation:
Variable cost flexible budget variance:
budget for 6,000 units total variable cost: $180,000
We divide the total cost by the activity in that budget:
$180,000/ 6,000 = 30
Now we multiply by the actual volume:
5,000 x 30 = 150,000
Now we do flexible budget - actual cost = variance
150,000 - 145,000 = 5,000 favorable
It is favorable, as the cost where less than expected.
The correct answer would be d. all of the above
Automobile loans is not a type of consumer credit
Answer:
Proposal A: 5,455 units
Proposal B: 5,770 units
Explanation:
The break-even point is the number of units required for the revenue to equal the total costs.
For proposal A:
Fixed Costs = $60,000
Variable Costs = $13 / unit
Selling Price = $24 / unit
For proposal B:
Fixed Costs = $75,000
Variable Costs = $11 / unit
Selling Price = $24 / unit
Rounding up to the next whole unit, the break-even points for proposal A and B, respectively, are 5,455 and 5,770 units.
