I am pretty sure that it's D. Tell me if it's correct or not!
<span>An economist's measurement of profit differs from an accountant's in that </span>accountants do not always include all of the opportunity costs when calculating total production costs. When the economist are trying to determine opportunity costs they account for all of production costs. Accounts won't always account for them and their affects on the business statements.
Answer:
Budgeting
Explanation:
Quantitative planning that compels managers to decide how to best allocate money to accomplish company goals is called <em>budgeting</em>.
Answer:
- total product costs incurred to make 27,500 units = $25.10 x 27,500 = $690,250
- total period costs incurred to make 27,500 units = $15.10 x 27,500 = $415,250
- total product costs incurred to make 31,000 units = $25.10 x 31,000 = $778,100
- total period costs incurred to make 24,000 units = $15.10 x 24,000 = $362,400
Explanation:
Average Cost per Unit
- Direct materials $8.90
- Direct labor $5.90
- Variable manufacturing overhead $3.40
- Fixed manufacturing overhead $6.90
- Fixed selling expense $5.40
- Fixed administrative expense $4.40
- Sales commissions $2.90
- Variable administrative expense $2.40
Product costs include direct labor, direct materials, production supplies, and factory overhead. Product costs per unit = $8.90 + $5.90 + $3.40 + $6.90 = $25.10
Period costs include selling and administrative expenses. Period costs per unit = $5.40 + $4.40 + $2.90 + $2.40 = $15.10