1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
PolarNik [594]
3 years ago
7

LO 6.5Why is absorption costing the method allowable for GAAP?

Business
1 answer:
MAXImum [283]3 years ago
7 0

Answer:

Explanation: Absorption Costing is the accepted method of of product costing because it takes into account all costs related to the production which includes all variable and fixed costs.

Using the absorption costing method, all normal manufacturing costs are treated as product costs and subsequently included as inventory in the financial statements. All Inventory costs are reflected in the income statement and the balance sheet.

while the use of variable costing method is not accepted because it only considers the variable costs, direct material and direct labour and leave out all fixed costs which is not accepted by GAAPS.

You might be interested in
Based on the research, a marketer tells a possible customer that with this new variety of corn they can expect to receive more t
olga nikolaevna [1]

This means that the research shows that 95% of the yield is between 118 to 130 bushels per acre. The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.

<h3>Confidence interval</h3>

Given that 95% confidence interval for the true mean yield is 118 to 130 bushels per acre.

This means that the research shows that 95% of the yield is between 118 to 130 bushels per acre. The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.

Hence:

μ ± E = (118, 130)

where μ is mean and E is margin of error

μ - E = 118 (1)

Also:

μ + E = 130   (2)

From both equations:

μ = 124, E = 6

The mean is 124 bushels per acre and the margin of error is 6 bushels per acre.

Find out more on Confidence interval at: brainly.com/question/15712887

7 0
3 years ago
Adrie writes the following business​ request: "Would you please send me a copy of the latest sales documents and a list of the e
Hunter-Best [27]

Answer:

D. dealing with multiple topics per question

Explanation:

7 0
3 years ago
Jim bought an $89 dollar calculator discounted 25%. What did he pay
IRINA_888 [86]
89 (0.25) = 22.25
89 - 22.25 = 66.75$
5 0
3 years ago
A firm plans to begin production of a new small appliance. The manager must decide whether to purchase the motors for the applia
blondinia [14]

Answer:

If the firm is going to need less than 50,000 motors, they should purchase them from the outside vendor.

If the firm is going to use between 50,000 to 59,999 motors, it should use process A.

If the firm expects to use 60,000 or more motors per year, it should use process B.

Explanation:

Process A:

contribution margin per unit = $11 - $7 = $4

break even number of units = $200,000 / $4 = 50,000 units

Process B:

contribution margin per unit = $11 - $8 = $3

break even number of units = $180,000 / $3 = 60,000 units

8 0
3 years ago
As a result of a decrease in the demand for U.S. dollars, there has been depreciation in the value of the U.S. dollar relative t
Lerok [7]

Answer:

Todd, an American, goes to visit South Korea for spring break - loser

Tood is a loser due to the depreciation of the U.S. dollar, because now he will need more dollars to buy a comparative amount of South Korean wons. His trip will now be more expensive.

An investment bank in South Korea, interested in purchasing U.S. government bonds - winner

The investment bank will exchange less wons for U.S. dollars than before. Buying the government bonds will now be cheaper for them.

Goodyear, a firm based in the United States, sells car tires in South Korea - winner

Goodyear will likely sell more cars because for its South Korean customers, the cars are now cheaper, since the value of the dollar has depreciated against the currency that they hold.

A family from South Korea visits relatives in the United States - winner

The South Korean family will exchange less wons for more U.S. dollars, making their trip cheaper.

A firm from South Korea sells handbags in the United States - loser

The handbags will now be more expensive for their American customers, likely causing a loss in sales revenue for the firm.

An electronics manufacturer in the United States, purchases a high tech company in South Korea - loser

The cost of the high tech South Korean company is now higher for the American manufacturer, because more dollars had to be exchanged for wons before the purchase.

Explanation:

8 0
3 years ago
Other questions:
  • The total cost of 7 pears is 12.50. how much will 11 pears cost
    11·2 answers
  • Bob contributed a building with an adjusted basis to Bob of $50,000 and a fair market value of $150,000 subject to a mortgage of
    14·1 answer
  • What is the main advantage of using a master maker?
    13·2 answers
  • On January 10, 2019, Metlock, Inc. sold merchandise on account to Monty Co. for $20,900, n/30. On February 9, Monty Co. gave Met
    11·1 answer
  • Which contingency of power are unions mainly applying by going on strike at a critical time in the company's business cycle
    6·1 answer
  • Paxson began 2014 with an inventory T-account debit balance of $22,000. In 2014, its inventory purchases amounted to $42,000, an
    7·1 answer
  • You are in the market for a new refrigerator for your company’s lounge, and you have narrowed the search down to two models. The
    8·1 answer
  • The owner of Elan Style Inc., a global fashion house, features in all of his stores' commercials. He explains how his company di
    7·1 answer
  • In preparing a company's statement of cash flows for the most recent year using the indirect method, the following information i
    15·1 answer
  • Star a convo for 100 pts
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!