Answer:
Product costs are.
Explanation:
Often the information needed by internal managers stands in sharp contrast to external reporting requirements promulgated by Generally Accepted Accounting Principles (GAAP).
GAAP requires full costing and management decision making requires incremental information.
According to GAAP, all manufacturing costs must be treated as product costs, and all selling and administrative costs must be treated as period costs.
Material cost + labor costs incurred directly in producing the product + other production or indirect production overhead costs.
If the products are in inventory, the costs are recorded as assets. If they have been sell, the are recorded as costs of goods sold.
Answer:
The answer is: Porter Plumbing's stock new rate of return is 14.38%
Explanation:
First we calculate beta:
beta = (stock's rate of return - risk free rate) / market rate of return
beta = 6.25% / 4.75% = 1.32
If beta remained the same (1.32% and the market rate of return increased by 2%, then to find the new value for Porter's stock (P):
1.32 = (P - risk free rate) / 6.75%
P - risk free rate = 1.32 x 6.75% = 8.88%
P = 8.88% + risk free rate
P = 8.88% + 5.50% = 14.38%
Explanation:
They use a minimum amount of resources for the amount of outputs produced.
Answer:
Instructions are listed below
Explanation:
We don't have enough information to answer the question numerically. But, I can provide a few formulas of how to answer it.
A)
Revenue/Sales (+)
Cost of Goods Sold (COGS) (-)
=Gross Profit
Marketing, Advertising, and Promotion Expenses (-)
General and Administrative (G&A) Expenses (-)
=Net operating income
B)Break-even point (dollars) fixed costs/ contribution margin ratio
Contribution margin ratio= (Price - unitary variable cost)/Price
1) Increase in Unitary variable cost:
Contribution margin= price - new unitary variable cost
2) Variance in income= new sales* contribution margin - increase in fixed costs
3) Prepare the income statement again
C) Break-even point= fixed costs/ contribution margin
Answer:
The cost of the 17 units that are sold is $505
Explanation:
The FIFO is a method used to account value for inventory. Under the method, the first item of inventory purchased is the first one sold.
The company has beginning inventory of 11 units on February 1. On February 3, it purchases 39 units and sells 17 units on February 5.
Using the periodic FIFO inventory method,
The cost of the 17 units that are sold = 11 (beginning inventory on February 1) x $29 + 6 (purchasing inventory on February 3)x $31 = $505