Answer:
b. $18.15
Explanation:
Toatal money spent on product A is:
Activity 1: 700/1000*18000 = $12600
Activity 2: 500/600*24000 = $20000
Activity 3: 800/1200*60000 = $40000
Total money spent on product A = $12600 + $20000 + $40000
= $72600
Total units of product A formed = 4000
Cost per product = $72600/4000 = $18.15
Therefore, The cost per unit of Product A under activty-based costing is closest to $18.15.
Answer:
The method 1 will have a bigger forecast bias ( whose value is 5 ) than the method 2 ( whose value 0 ).
Explanation:
To know which method will have the bigger forecast bias , we will see the deviation of both methods from the actual forecast numbers and then by seeing which one is having a bigger deviation value , we can say which one is having bigger forecast bias.
FORECAST BIAS = ACTUAL NUMBER - FORECAST NUMBER
Actual Forecast Forecast Forecast Forecast
caller turn method 1 method 2 bias method 1 bias method 2
23 23 20 0 3
10 5 13 5 -3
15 14 14 1 1
19 20 20 -1 -1
TOTAL 5 0
from the above information we can say that the method 1 with forecast bias value of 5 is much bigger than the method 2 with forecast bias value of 0.
Answer: The Matching Principle says that we should recognize expenses in the same period that it has helped generate revenue. Thus, recognizing an allowance for doubtful debts for the year resulting from sales would satisfy that principle.
Explanation:
Answer:
The 10,000 units of output that will be supplied by the two firms to the market.
Profit that each firm would earn will be higher than previous.
Explanation:
The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.
