Answer:
Hence the correct option is Option (2).
Explanation:
The correct option is (2) A system containing a large number of cost pools will not tend to exhibit substantial cost accuracy over a system containing seven to ten cost pools.
The statement in the question is : FALSE
<h3>What is a step-variable cost ?</h3>
A step variable cost is a type of cost that varies with the level of activity, but is incurred at discrete points and it involves large changes. Hence If the steps in a step-variable cost behavior pattern are large, the step variable cost function cannot be approximated by a variable cost function without loss in accuracy because the variable cost behavior pattern is directly proportional to the variable cost function.
Hence we can conclude that The statement in the question is : FALSE
Learn more about step-variable cost : brainly.com/question/17061986
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Answer:
April,
- Sales is zero
- Net income is zero
- Net cash flow is an outflow of $100,000 (used in the purchase of raw materials)
May,
- Sales is $150,000
- Net income is $500,00
- Net cash flow is zero
And in June;
- Sales is zero
- Net income is zero
- Net cash flow is an inflow of $150,000 (amount received from customers)
Explanation:
In April, the company purchased raw materials (Sugar and Peppermint) for $100,000. The entries posted are debit to Inventories and Credit to Cash account (both amounting to $100,000 each).
As such in April,
- Sales is zero
- Net income is zero
- Net cash flow is an outflow of $100,000 (used in the purchase of raw materials)
It produces its candy and sells it to distributors in May for $150,000, but it does not receive payment until June.
When the sale is made in May, the entries required is Debit accounts receivables $150,000 and Credit Sales revenue $150,000. Also, Debit cost of goods sold $100,000 and Credit Inventories $100,000.
Net income is the difference between sales and cost of sales.
As such in May,
- Sales is $150,000
- Net income is $500,00
- Net cash flow is zero
For June,
Payment for goods sold in May were received, entries posted are debit to cash account and a credit to accounts receivables (both balance sheet accounts), hence;
- Sales is zero
- Net income is zero
- Net cash flow is an inflow of $150,000 (amount received from customers)
Answer:
finished cost = $200,000
inventory cost=$250,000
manufactured cost= $600,000
cost of good= beginning inventory+purchase during period cost- ending inventory
$600,000+$200,000-$250,000
$550,000
Answer: The correct answer is "near moneys".
Explanation: <u>near money is a financial asset that cannot be directly used as a medium of exchange but can be readily converted into cash or checkable bank deposits.</u>
It is a term that in finance is used to refer to an asset that despite not being usable money as a medium of exchange, has a high degree of liquidity, that is, it has the facility to quickly become cash.
