Answer:
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Explanation:
Giving the following information:
The variable manufacturing overhead is charged to production at a rate of 63% of direct labor cost. The direct materials and direct labor cost per unit to make a pair of finials are $3.51 and $4.73, respectively. Normal production is 28,300 curtain rods per year.
A supplier offers to make a pair of finials for $13.20 per unit.
Fixed costs are a sunk cost, therefore it is not taken into account.
Make in house:
Unitary cost= 3.51 + 4.73 + (4.73*0.63)= $11,22
Outsource:
Unitary cost= 13.20
For now, it is better to keep producing in house. If demand increases, Pottery Ranch must outsource some of the production.
Answer:
He needs to make sure his checking account balance is sufficient enough to cover the check
Explanation:
Activity-based costing systems are greater correct than conventional costing structures. this is because they provide an extra specific breakdown of indirect prices.
Activity-based totally costing offers a greater correct approach to product/carrier costing, main to more accurate pricing decisions. It increases expertise of overheads and price drivers; and makes highly-priced and non-cost including sports greater visible, permitting managers to lessen or dispose of them.
There are pros and cons to both the traditional and the Activity-based costing gadgets. One gain of the ABC gadget is that it provides extra correct records on the charges to manufacture products, but it does not show up on the monetary statements.
The primary purpose of the usage of the activity-primarily based costing method is to increase the profitability and standard performance of a corporation. The Activity-based costing approach does this by identifying correct overhead fees and cost drivers main to extra streamlined enterprise procedures.
Learn more about Activity-based costing here: brainly.com/question/6654166
#SPJ4
Answer: the modification adds distinct goods or services at a price that reflects their stand-alone selling price.
Explanation:
When multiple goods or services are offered in the same contract they are not usually given their standalone price but rather a contract price that is less as a form of discount for getting all the goods at the same time.
When a modification is added however, that reflects the standalone price of goods added, the contract has to account for the contract modification because there are now multiple pricing conventions and this needs to be accounted for.
In the Toyota Production System, waste and inefficiency are referred to as muda.
