Answer:
A, D, E
Explanation:
Universal Container can monitor how the discounts are affecting profitability by evaluating the difference between discounted and listed price. They can then reduce the discounts to increase profits if this is the reason for reduced profitability.
If this is not responsible for falling profits, it may be that too many products are available in a sales discounting opportunity. Universal Containers can remedy this by reducing the number of products included in an offer.
Their falling profitability can also be controlled by putting a management approval process in place, ensuring that the effects of a sales discounting plan on profitability are always considered.
Answer:
Explanation:
The main objective of cost accounting are ascertainment of cost, fixation of selling price, proper recording and presentation of cost data to management for measuring efficiency and for cost control and cost reduction, ascertaining the profit of each activity, assisting management in decision making process.
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Answer:
Explanation:
Formula to be used is Contribution margin = Sales * Contribution margin ratio
Contribution Margin = $82,000 * 67% = $82,000*0.67 = 54,940
Net operating income = Contribution margin - Fixed expenses
Net operating income = $54,940 - $25,000 = $29,940
So the answer is option C
Answer:
7,500 Unfavorable
Explanation:
Standard rate = $5 per pound
Actual quantity = 37,500 pounds
Direct labor quantity variance:
= Standard rate × (Standard quantity - Actual quantity)
= 5 × [(12,000 units × 3 pounds) - 37,500 pounds]
= 5 × [36,000 pounds - 37,500 pounds]
= 5 × 1,500
= 7,500 Unfavorable
Therefore, the direct materials quantity variance was 7,500 Unfavorable.
