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Tamiku [17]
3 years ago
11

This year, Lambert Company will ship 1,500,000 pounds of goods to customers at a cost of $1,200,000. If a customer orders 10,000

pounds and produces $200,000 of revenue (total revenue is $20 million), the amount of shipping cost assigned to the customer by using ABC would be a.unable to be determined. b.$8,000 (0.80 per pound shipped). c.$24,000 (2% of the shipping cost). d.$12,000 (1% of the shipping cost). e.None of these.
Business
1 answer:
mrs_skeptik [129]3 years ago
5 0

Answer:

(B) $8,000 (0.80 per pound shipped).

Step-by-step explanation:

In ABC system, the shipping cost to be assigned can be calculated by using the shipping cost per pound. Shipping cost per pound will be an appropriate cost driver for the shipping activity. The revenue generated by customer is irrelevant for computation of total cost.

Shipping cost = Shipping cost per pound × quantity ordered by customers.

Therefore,

Shipping cost = (Total shipping cost ÷ total quantity shipped) × Quantity ordered by customer.

Therefore,

Shipping cost = 1,200,000 ÷1,500,000 × 10,000

Shipping cost = 0.8 × 10,000

Shipping cost = $8000

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Hayden, a buyer for a medium-sized company, is assessing the value of competing software products for use in his firm. Which of
sveta [45]

Answer: A. Speech of delivery

Explanation:

When buying things like software, there are certain things that will determine the value apart from the monetary price. These include the ease of installation and the availability of training assistance.

With ease of installation, the fundamental question is if the software is easy or complicated to install. The easier it is the better. Also is there someone who can help the users be able to master the features of the software. This is availability of training assistance.

Now while speech of delivery can help in convincing Hayden to buy from a particular shop, it does not contribute to the value of the software.

6 0
3 years ago
A new machine comes with 200 free service hours over the first year. Additional time costs $150 per hour. What are the average a
pishuonlain [190]

Answer:

(a) 0; 0

(b) $150 per hour; $16.67 per hour

(c) (b) $150 per hour; $53.57 per hour

Explanation:

(a) Number of hours = 125

Marginal cost = 0 (since service is cost less upto 200 hours)

Average cost = 0

(b) Number of hours = 225

Marginal cost = $150 per hour

Total cost = $150 × (225 - 200)

                = $150 × 25

                = $3,750

Average cost = Total cost ÷ Number of hours

                       = $3,750 ÷ 225

                       = $16.67 per hour

(c) Number of hours = 325

Marginal cost = $150 per hour

Total cost = $150 × (325 - 200)

                = $150 × 125

                = $18,750

Average cost = Total cost ÷ Number of hours

                       = $18,750 ÷ 325

                       = $53.57 per hour

5 0
3 years ago
The comparison of the actual results of capital investments to the projected results is referred to as?
harina [27]

The comparison of the actual results of capital investments to the projected results is referred to as post-audit.

The payback method determines how long it will take for the company to recoup its investment. Annual cash flows are compared to the initial investment, but the time value of money is not considered and cash flows beyond the payback period are ignored.

Companies apply the time value of money in a variety of ways to make yes or no decisions about investment projects and between competing projects. Two of the most common methods are net present value and internal rate of return (IRR).

The minimum return on the capital investment required by management is called the return on investment. The collection method considers cash flows that occur both during and after the collection period.

Learn more about capital investments at

brainly.com/question/7442083

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6 0
1 year ago
The upper management of barcelona restaurant group believes that success depends on employees who are self-starters and empowere
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This idea is most consistent with LAISSEZ FAIRE type of management in which the employees are allowed to use their ideas and creativity to flourish in their areas of specialization. The management takes a back seat role in the company and only offer guidance when needed.
3 0
3 years ago
Read 2 more answers
ABC Inc. recently purchased an equipment. The price negotiated with the seller was $20,000. Aqua also paid sales tax of $2,000 o
MaRussiya [10]

Answer: $22500

Explanation:

The following information can be gotten from the question:

Price of equipment = $20,000

Sale tax = $2000

Maintenance cost = $2200

Shipping cost = $500

The amount that the equipment should be recorded on the balance sheet prior to recording depreciation expense will be calculated as:

Price = $20000

Add: Sales Tax = $2000

Add: Shipping & Preparation = $500

Price of the equipment before depriciation will then be:

= $20000 + $2000 + $500

= $22500

5 0
3 years ago
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