When sales exceed production, the net operating income reported under variable costing generally will be <u>greater than the net operating income reported under absorption costing</u>.
Under variable costing, constant manufacturing overhead fee is handled as product cost. If the range of devices produced exceeds the range of gadgets sold, then net operating income under absorption costing will: be extra than net operating earnings underneath variable costing.
Variable costing is a concept used in managerial and cost accounting wherein the fixed production overhead is excluded from the product price of manufacturing. The technique contrasts with absorption costing, in which the fixed manufacturing overhead is allotted to products produced.
Absorption costing, once in a while known as “full costing,” is a managerial accounting technique for taking pictures of all prices associated with manufacturing a selected product. The direct and oblique costs, together with direct substances, direct exertions, leases, and insurance, are accounted for with the aid of the use of this method.
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Answer:
$19,002.77
Explanation:
The computation of the value of deal is shown below:
The value of the deal = Sales revenue - purchase cost
where,
Sales revenue is
= 2,300,000 ÷ 25.49 koruna per dollar
= $90,231.46
And, the purchase cost is
= 2,800,000 ÷ 39.31 baht per dollar
= $71,228.69
So, the value of the deal is
= $90,231.46 - $71,228.69
= $19,002.77
hence, the value of the deal is $19,002.77
Explanation:
<u>a.what happens to the price of coffee beans?</u>
In this case, when there is a phenomenon like a hurricane that destroys half the harvest, the supply of coffee beans consequently decreases, the quantity decreases and the price increases.
<u>b. What happens to the price of a cup of coffee? What happens to the total expenditure on cups of coffee?</u>
When the price of the main input for the production of coffee cups increases and the supply decreases, it appears as an increase in the price of a cup of coffee and a decrease in the amount of coffee cups available on the market.
As they have an inelastic demand, coffee cups with a higher price correspond to an increase in total coffee expenses.
<u>c.What happens to the price of a cup of donuts? What happens to the total expendiure on donuts?</u>
In this case, donuts and coffee are complementary, so when there is an increase in the price of coffee and a decrease in the quantity demanded, there is also a decrease in the demand for donuts. So if the demand for donuts decreases, their price also decreases and the total expenditure on donuts decreases.
The I believe the answer is undifferentiated marketing
