1. is true, and the 2. is false
Answer:
The correct answer is C)
Explanation:
Whether or not companies in the industry expanded their capacity is really not of much concern. What should concern management are the other factors:
- Forecasted Demand Vs Actual Demand: This tells us what has happened in the market
- Forecasted Growth in Demand: This tells us what might happen in the market
- Industry-wide capacity to meet demand is critical information: This tell us what other companies are doing and how it is shaping the market. That is, is the market saturated or not.
- If beginning inventories are very high, in each of the regions reported, installing additional production capacity is not a very sound business decision.
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Answer:
D) is used exclusively in manufacturing
Explanation:
- As the processing costs are directly related to the direct and the indirect costs of the manufacturing processes. These costs are usually assigned to large scale batch processings and assigned to every individual cost of each unit. Assigned when the company processes huge homogeneous products.
<u>Thus has the following four steps</u>:
1. Summarize the flow of all physical units of the output.
2. Compute the output in the terms of the equivalent units.
3. Summarize total costs to the account for and the Compute equivalent unit of costs.
4. Assign total costs to the units completed and to the units in ending work in the process inventory.
1 what will be produced?
2 how will it be produced?
3 how will the output society produces be distributed?
