The longer the time period considered, the more the elasticity of supply tends to INCREASE.
The elasticity of supply refers to the responsiveness of suppliers to the change in price of their products or services. Elasticity of supply is measured as a ratio of proportionate change in quantity supplied to the change in price. Elasticity of supply tends to increase with time.<span />
Answer:
<em>We can invite at most 80 people without going over our budget.</em>
Explanation:
The available budget is $ 2,100.
As a fixed amount we must pay $ 95 for the cleaning service. After making this payment we would be available $ 2,100 - $ 95 = $ 2,005 to cover the food and drink expenses of the guests. Since for each guest they charge us $ 25, we can invite a maximum of 80 guests ($ 2,005 / $ 25 = 80.2). Considering that we will invite 80 people, the total cost of the event will be $ 95 + 80. $ 25 = $ 2,095, that is, we will finally have $ 5 left over.
Answer:
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
Explanation:
Giving the following information:
It takes 80,900 direct labor hours to manufacture the X-1 and 93,500 direct labor hours to manufacture the X-2 Line.
Total overhead= 225,000 + 149,960= $374,960
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 374,960 / (80,900 + 93,500)
Predetermined manufacturing overhead rate= $2.15 per direct labor hour
The Correct Answer is Option D. (Job-Cost record)
Answer:
Difference between traditional costing method and activity based costing method is mentioned as follows:-
- Traditional costing method is the technique in which products are implemented with indirect cost according to overhead rate whereas activity based costing relatively assign cost to product according to their activity in consumption.
- Traditional costing has easy implementation at low cost but activity based costing is costly and complex.
- Accuracy of traditional costing is low as compared with activity based costing
