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Sidana [21]
2 years ago
6

What is the primary benefit of activity-based costing? Arbitrary allocations of overhead costs All these are primary benefits of

ABC More cost pools and therefore more accurate product costing The cost of implementation
Business
1 answer:
Leokris [45]2 years ago
6 0

Answer: The primary benefit of activity-based costing is that it uses More cost pools and therefore more accurate product costing.

Explanation: ABC costing: Is a general cost allocation system in 2 steps that establishes activity cost pools and cost drivers.

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Keith Inc. has 4 product lines: sour cream, ice cream, yogurt, and butter. Demand of individual products is not affected by chan
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There will be decrease in profit if dropping of sour cream. So that means Keith Inc would lose $4,000.00

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Consider the case of the Henderson Company.
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Answer:

I) Days sales outstanding (DSO) for all customers?      48.7days

= (53*0.9)+(10*0.1) = 48.7 days

II) Net sales?                                                                  $166.600

The Net sales = Gross sales - sales allowance  

The discount amount due for the 10% discount customers = 2% of the 10% of 170 mn ==>  0.02 * 0.1 * 170 ===> 0.34 mn

∴ The Net sales = 17 - 0.34 mn = 16.66 mn

   Amount paid by discount customers?                     $13.600

Explanation:

I. General Credit Policy Information

  Credit stamps                                                               2/10 Net 30

  Days sales outstanding (DSO) for all customers    48.7days

  DSO for customers who take the discount (10%)      10days

  DSO for customers who forgo the discount (90%)    53days

II. Annual Credit Sales and Costs ($ millions)

  Gross sales                                                                 $170.000

  Net sales?                                                                   $166.600

  Amount paid by discount customers                      $13.600

  Amount paid by non discounted customers           $153.000

 Variable operating costs (82% of gross sales)         $139.40

 Bad debts                                                                    $0.0

 Credit evaluation & collection costs (10% of gross sales) $17.00

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Liability rules, property rights, contract enforcement, and standards for weights and measures affect the for people to produce
malfutka [58]
Incentives is the answer


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Cadillac is preparing to build a new assembly plant in the United States. Although it would be slightly cheaper to build cars in
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Answer:

A

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