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aivan3 [116]
4 years ago
12

Which of the following statements is incorrect with regard to product costs? A. Product costs flow from the balance sheet to the

income statement. B. Unlike direct material and direct labor costs, overhead costs must be allocated to products. C. Product costs are expensed in the period incurred. D. Depreciation on manufacturing equipment is an indirect product cost.
Business
1 answer:
Rama09 [41]4 years ago
5 0

Answer:

Product costs do not flow from the balance sheet to the income statement.

The correct answer is A.

Explanation:

Product costs flow from the income statement to the balance sheet.

Unlike direct material and direct labour cost, overhead cost must be allocated to products using a suitable basis.

Product costs are expensed in the period incurred in the income statement.

Depreciation on manufacturing equipment is an indirect product cost because it is not directly traceable to a cost unit or cost center.

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4 years ago
The futures price of gold is $1,000. Futures contracts are for 100 ounces of gold, and the margin requirement is $3,000 a contra
Dmitry [639]

Answer:

a. The initial remittance is the same as the initial margin requirement of $3,000.

b. The profit is;

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= $500

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= 16.67%

c. The loss is;

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= -$200

d. If the futures price declines to $984, what must the speculator do?

Depends on if the maintenance requirement is still below the balance.

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= $1,400

This is below the maintenance margin of $1,500 and so the speculator will have to deposit an amount that will take it back to the original margin requirement.

= 3,000 - 1,400

= $1,600

Speculator should deposit $1,600.

e. = 3,000 - 100 (1,000 - 982)

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8 0
3 years ago
Smith Company makes and sells a single product called a Pod. Each Pod requires 1.4 hours of labor at a labor rate of $9.60 per h
Ganezh [65]

Answer:

Total direct labor costs= $295,680

Explanation:

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Total direct labor hours= 22,000*1.4= 30,800 hours

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3 0
3 years ago
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Answer:

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Explanation:

As we know that

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It shows a difference between the real GDP and the aggregate expenditure

Since the real GDP is less than the aggregate expenditure, so the unplanned inventory should come in negative amount else it comes in a positive amount

4 0
3 years ago
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