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Gekata [30.6K]
3 years ago
5

When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs: Multi

ple Choice the unit product costs of both high and low volume products typically increase. the unit product costs of both high and low volume products typically decrease. the unit product costs of high volume products typically increase and the unit product costs of low volume products typically decrease. the unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.
Business
1 answer:
Naddika [18.5K]3 years ago
3 0

Answer:

Option D- The unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.

Explanation:

The reason is that the company has batch level costs which are fixed indirect costs that are to be assigned to the product and are fixed amounts say $100. Also assume that there are two type of units, Unit A and B. Suppose that the batch cost any number of units of A produced will remain the same and similarly for product B. This means if the units produced of A are at 20 unit per batch and product B produced are 10 units per batch then Activity Based Costing says that the unit cost of batch cost absorbed in Product A would be $5 ($100 / 20) and that for product B would be $10 ($100 / 10). So this example better explains cost behavior of batch cost which is fixed for different levels of production.

This means the fixed cost per unit which decreases with increase in production will keep decreasing if the number of units produced starts increasing. In other words, the similar class of units if are produced in higher quantity then the cost per unit will be decreased due to decrease in fixed cost per unit and vice versa.

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Answer:

(1) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better.

Explanation:

Monetary Policy is the instrument by which the Central Bank conducts the economy. The debate over monetary policy is basically divided into two groups. Monetarists who believe that monetary policy should be used only to maintain price stability - contain inflation. On the other hand, monetary policy activists argue that, in addition to containing inflation, monetary policy is a powerful instrument that can be used to influence the economy in other sectors, for example in stimulating job creation. This would make monetary policy an instrument designed to address particularities of the economic system.

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2 years ago
The amazon echo is an example of ________ because when it was introduced, nothing like it existed on the market.
katovenus [111]
Answer is: Innovation
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1 year ago
When customer service problems occur and the culture is not customer-focused, the important question for the organization is "Ho
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We fix it by committing to the customer and setting up an environment to support it.

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2 years ago
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Brady Company entered into these transactions during May 2022, its first month of operations.
Monica [59]

The effect of each transaction on the accounting equation is to be shown in the attachment below.

The following information should be considered:

  • In the accounting equation, the total assets should be equivalent to the total liabilities & the shareholder equity.
  • It determined the financial position, performance of the company.
  • It is known as the presentation of the balance sheet.

In this way, the accounting equation should be prepared.

Learn more: brainly.com/question/14689492

4 0
2 years ago
You must estimate the intrinsic value of Noe Technologies’ stock. The end-of-year free cash flow (FCF1) is expected to be $27.50
emmasim [6.3K]

Answer:

= $52.78 per share

Explanation:

<em>The value of a business can be determined using the free cash flow model. According to this model, the value of a firm is is the present value of its free cash flow discounted at the weigthed average cost of capital (WACC.)</em>

<em>The value of equity is the value of firm less value of other instruments (e.g debt and preferred stocks)</em>

<em>Value of equity = Value of the entire firm - Value of debt </em>

We can work out the the value per share using the steps below:

<em>Step 1</em>

<em>Calculate the total value of the firm</em>

Value of firm =  27.50/(0.1-0.07)

 = $916.66 million

<em>Step 2</em>

<em>Calculate the value of equity</em>

<em>Value of equity = Value of the entire firm - Value of debt</em>

= $916.66 million - $125.0 million

=791.666 million

<em>Step 3</em>

<em>Calculate the value per share</em>

Value per share = Value of equity/ units of common stock

=$791.666 million/15 million units

= $52.78 per share

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2 years ago
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