Answer: Income is higher under absorption costing by $15,000. This is consistent with a general rule of thumb: Increases in inventory cause income to be higher under absorption costing than under variable costing, and vice versa.
Explanation:
Answer:
no, since other things are not held constant, including her income
Explanation:
The law of demand states that price has an inverse relationship with quantity demanded of a good. As price increases the demand reduces, and as price decreases quantity demanded increases.
However this is true when all other factors reman constant.
In the given scenario the price of hamburger has fallen but Hilary buys less of it. This looks like a violation of the law of demand, but her income has changed so the law of demand may not hold here.
All factors do not remain constant.
Hilary's behaviour can be explained by the concept income effect. Where an increase in income leads to the consumer buying more of expensive goods than cheaper ones.
Answer:
$76.670
Explanation:
Manufacturing overhead is the category where all the direct and not-direct cost and expenses are incurred when a product is manufactured. Manufacturing overhead includes depreciation of manufacturing equipment, factory repair and maintenance, the direct and indirect cost of labor, and direct and indirect material used. Other expenses and costs not directly related to the manufacture of products must not be included. Expenses and costs not included (within this question): sales of sales and president salaries, advertising and office rent (if it is not explicitly broke down between factory and office spaces).
Answer:
LIFO method
Explanation:
The last-in, first-out (LIFO) inventory method values the cost of goods sold (COGS) using the price of the last purchases made by the company. This valuation method is accepted by the US GAAP and it is generally applied when the replacement costs are continuously increasing.
On the other hand, the IFRS (the international accounting standard) does not allows LIFO, it only accepts FIFO.
