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Nata [24]
3 years ago
6

Which of the following statements is true concerning income if manufacturing production exceeds units sold?A higher operating in

come will result under variable costingA lower operating income will result under absorption costingA higher operating income will result under absorption costingThe same operating income will result
Business
1 answer:
vova2212 [387]3 years ago
4 0

Answer:

A higher operating income will result under absorption costing

Explanation:

If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing  than under variable costing.

Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.  

Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.

<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>

<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>

<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>

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Answer pleaseee I want fastly
lapo4ka [179]

Explanation:

Hey there!!!

Your required answer is option D.

Because, when you engage or serve others for money or salary or wage it is termed as wage employment.

<em><u>Hope it helps</u></em><em><u>.</u></em><em><u>.</u></em><em><u>.</u></em>

5 0
3 years ago
Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $
kirill [66]

Answer:

Incremental cost= $61,875

Explanation:

Giving the following information:

Gelb Company currently manufactures 49,500 units per year of a key component for its manufacturing process. Variable costs are $5.15 per unit, fixed costs related to making this component are $75,000 per year, and allocated fixed costs are $70,500 per year. The allocated fixed costs are unavoidable whether the company makes or buys this component. The company is considering buying this component from a supplier for $3.90 per unit

We need to determine whether it is more convenient to produce the component or outsource it. We will only consider the relevant costs, therefore the fixed costs will not be taken into account.

Make in house:

Cost= 49,500*5.15= $254,925

Buy:

Cost= 49,500*3.90= $193,050

Incremental cost= 254,925 - 193,050= $61,875

8 0
3 years ago
A bond is a long-term financing method for capital projects.<br> A. True<br> B. False
alexandr1967 [171]

A. True.....................

5 0
3 years ago
Suppose that the European Union is now experiencing a recession. Its actual real GDP is €200 billion, and the estimate of its po
jek_recluse [69]

Answer and Explanation:

As per the data given in the question,

The central bank have various tools to apply expansionary policy and these tools are :

- Reserve ratio.

- Discount rate.

- Open market operations.

The open market operations include the buying and selling of government owned securities by central bank to impact the monetary base in the economy. In case of any recession, the central bank should purchase government securities to enhance the money supply. Because whenever they do any kind of open market purchase there would definitely be increase in money in the economy. That's why increment in money supply decrease the interest rate in economy.

Nominal interest rate is the cost of borrowing so if there is decrement in interest rate, there would be consumption and investment activities. these both are the component of aggregate demand so the aggregate demand will increase, and this increment in aggregate demand helps the economy to recover in the situation of recession.

6 0
3 years ago
Sohan started a business with a capital of rs. 80000. After 6 months mohan joined as a partner by investing rs. 65000. After one
Lady bird [3.3K]

Sohan invested Rs 80000 in the beginning of his firm. After six months, Mohan invested Rs. 65,000 to become a partner. Sohan put his money into investments for 12 months, while Mohan made investments for 6 months. They made a total profit of Rs. 20,000 after a year. The portion of Sohan in the profit that he made is 14222.

One way to assess a company's success is through its profit. Its simplest definition is the sum that remains after deducting all expenses from all revenues. The remaining funds, or your profits, can either be retained by the company and reinvested to fund future expansion, or they can be given as a draw or dividends to shareholders.

To learn more about share of profit here

https://brainly.in/question/47628097

#SPJ4

4 0
2 years ago
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