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4 years ago

Many traditional costing systems:

Business

2 answers:

Tpy6a [65]4 years ago

6 0

Answer:

The correct answer is letter "D": combine widely varying elements of overhead into a single cost pool.

Explanation:

The traditional costing system is an accounting method to calculate the costs and expenses of a company. The main characteristic of this approach relies on how overhead -difficult costs to calculate but are part of the production process such as rent or utilities- is calculated. The total cost of overhead is pooled to be divided by the total direct labor measured in dollars and, in such a way, calculate the overhead cost per unit produced.

puteri [66]4 years ago

5 0

Answer:

The answer to the question is A

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Haskins is an officer of a real estate development firm. Haskins purchased a piece of property in a rural area of Arizona with t

oksano4ka [1.4K]

Answer:

A) The firm can ratify Haskin's actions and take over the contract.

Explanation:

Hanskin's was not explicitely allowed to buy the property in Arizona, but he did it with the intention of increasing the amount of assets that the real estate company holds.

The board of directors should simply take over the contract as long as it is profitable (it most likely is), and analyze whether to change its policies about property purchasing or not, because requiring a board resolution for each one of them can make the process slow and increase opportunity costs.

3 0

4 years ago

Fitness Bands Corporation gathered the following information for Job #928: Standard Total Cost Actual Total Cost Direct materia

Eduardwww [97]

Question:

standard total cost Actual total cost

Direct material

Standard 2000 pints $3.50/pint $7,000

Actual 2,500 pints $5.00/pint $12,000

Answer:

Materials quantity variance= $1,750 unfavorable

Explanation:

Material quantity variance occurs when the actual quantity used to achieved a given level of output is more or less than the standard quantity.

It is determined by the difference between the actual and standard quantity of material for the actual level of output multiplied by the the standard price

pints

Standard quantity allowed 2,000

Actual quantity used 2,500

Quantity variance 500 unfavorable

Standard price $3.50

Materials quantity variance 1,750 unfavorable

Materials quantity variance= $1,750 unfavorable

8 0

3 years ago

The production team of Widget Corp, a furniture manufacturer, has determined the amount of wood, metal, fabric, and labor hours

slega [8]

Answer:

The answer is multi-factor productivity.

Explanation:

Multi-factor productivity (MFP) measures or determines the productivity or efficiency of a production process by comparing it to the the amount of invested multi-factor inputs (labor, materials, energy, capital).

In other words, Multi-factor productivity (MFP) also known as total factor productivity (TFP) is an economic performance determination of the number of goods produced when compared to inputs (labor, materials, energy, capital).

8 0

3 years ago

In the market clearing price,

Semenov [28]

Answer:

B) the supply by sellers meets the demand from buyers.

Explanation:

The market clearing price is also called the equilibrium price. At the equilibrium price for a given product or service, both the quantity supplied by the suppliers and the quantity demanded by the consumers is EQUAL. In a supply and demand curve, the equilibrium price is where both curves meet.

4 0

4 years ago

Howard Weiss, Inc,. is considering building a sensitive new radiation scanning device. His managers believe that there is a prob

SpyIntel [72]

Answer:

Consider the following information

Probability of ATR coming up with a competitive product is 0.35

If ATR does not come up with a competitive product and H adds an assembly line, the profit is $60,000

If it adds an assembly line and ATR adds the product, the profit is $20,000

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

A) Expected value for the add assembly line option:

The company would get a profit of $60,000 if ATR does not come up with a competitive product. If ATR comes up with a competitive product and H adds an assembly line, the profit is $20,000.

Probability of not coming up with a product is 0.65 (1-0.35)

Calculate the value if it does not come up with a new product line and H adds an assembly line as follows:

Value if it does not come up with a new product = 0.65 x $60,000

= $39,000

Calculate the value if it comes up with a new product line and H adds an assembly line as follows:

Value if it does come up with a new product = 0.35 x $20, 000 = $7,000

Calculate the expected value as follows:

Expected value = S39000 + $7000

Expected value =$46,000

Expected value for build new plant option:

If H adds a new assembly but ATR does not come up with a competitive product, the profit is $600,000

If ATR does not enter the market, the loss for H is $120,000

Calculate the value if H adds a new assembly but ATR does not come up with a competitive product as follows:

Value if it does not come up with a new product = 0.65 x $600000

= $390, 000

Calculate the value if ATR does not enter the market:

Value if it does not compete in market = 0.35 x -$120000 = -$42, 000

Calculate the expected value as follows:

Expected value= $390,000 - $42,000

Expected value =$348,000

The expected value of building a plant is more than the expected value of adding product line. Therefore, the best alternative is to build the plant.

B) Calculation of expected value of perfect information (EVPI):

EVPI = 0.65 x $600,000 + 0.35 x $120,000

EVPI = $390,000 + $42,000

EVPI =$432,000

Calculation of value of return:

Value of return = Value of perfect information - Maximum EMV

Value of return =$432,000 - 348,000

Value of return =$84,000

4 0

4 years ago