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2 years ago

For product costs associated with a particular product to be reported on the income statement:

Business

1 answer:

RUDIKE [14]2 years ago

6 0

Answer:

a. The product must be sold

Explanation:

Total revenue and total expenses are recorded in the income statement.

If the total income exceeds than the total expenditure then the company earns net income And if the total income is less than the total expenditure then the company has a net loss.

The product includes direct material cost, direct labor cost ,and the manufacturing overhead cost. If the product cost is not sold then it is shown in the asset side of the balance sheet as an inventory

And, if the product is sold, the same is subtracted from the cost of goods sold and shown in the income statement

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.According to supply-side fiscal policy, reducing tax rates on wages and profits will:

sergejj [24]

Answer:

The answer is C.

Explanation:

Reducing tax rate according to supply - side policy creates demand pull inflation.

Demand pull inflation is a situation whereby people have more buying power due to the availability of cash thereby leading to high demand and consequentially leading to an increase in the price of goods and services by suppliers.

That is the process where demand outplays supply due to the high purchasing power thereby causing price to increase which is the demand pull inflation effect.

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2 years ago

During June, Buttrey Corporation incurred $72,000 of direct labor costs and $12,000 of indirect labor costs. The journal entry t

romanna [79]

The correct question is:

During June, Buttrey Corporation incurred $67,000 of direct labor costs and $7,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

A)debit to Work in Process of $67,000B)credit to Work in Process of $74,000C)debit to Work in Process of $74,000D)credit to Work in Process of $67,

Answer:

a. debit to Work in Process of $67,000

Explanation:

Labour costs are made up of direct labour cost and indirect labour costs.

An addition of these two items results in amount of money the company will pay as wages to worked (labour).

In the given scenario we will then add direct and indirect labour cost to get wages to be paid.

Wage = 72,000 + 12,000 = $84,000

Wages is credited when raising journal entry

Direct labour will be classified under work in process (that is $72,000)

While indirect labour is manufacturing overhead $12,000)

Work in process and manufacturing overhead are debited when raising journal entry

So one of the entries will be a debit to Work in Process of $67,000

7 0

2 years ago

1. A major controversy that is yet to be resolved about the Medicare Prescription Drug, Improvement and Modernization Act of 200

qaws [65]

Answer:

C. What the program will ultimately cost the federal government

Explanation:

The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 was an attempt to make improvements or amendments to the Social Security Act. It radically changed the playing field for private plans participating in the Medicare program by substantially raising monthly payment rates in an effort to stabilize the market and reverse the decline in benefit generosity. It also provided for voluntary prescription drugs under the medicare program. However, the utilization and cost of the program skyrocketed as soon as the funding source was established. It has remained unknown what the program will ultimately cost the federal government, no wonder the current administration under Trump wants to turn it upside down.

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2 years ago

You have taken a job in industry and are facing your first ordering decision. As you prepare to place the order, you remember yo

skelet666 [1.2K]

Answer:

The formula is not used if consumer demand and ordering and holding costs are not constant.

Explanation:

E.O.Q formula measures the ideal quantity of order a company should purchase in order to minimize its inventory costs, such as holding costs and shortage costs. The formula, however has its limitations, in a way that it assumes that the costumer demand is constant and ordering and holding costs remain constant. This makes formula hard to use in case of seasonal changes of demand, inventory costs or lost sales revenue due to inventory shortages.

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3 years ago

Factor proportions theory differs from the theory of comparative advantage in that the focus of factor proportions theory is on

Tom [10]

Answer:

The correct answer is letter "C": usage of the most abundant factors of production, while the focus of the comparative advantage theory is on the productivity of the production process.

Explanation:

The Factor Productions theory, also known as the <em>Heckscher-Ohlin</em> theory, is a concept that tries to explain how international trade works. It is based on the focus that production increases capital and labor to an equal importance level. While, the Comparative Advantage theory is defined as the ability of an individual, company, or country to produce a good or service at a lower opportunity cost than its competitor.

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3 years ago