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quester [9]
3 years ago
10

LO 4.1Why are product costs assigned to the product and period costs immediately expensed?

Business
1 answer:
Levart [38]3 years ago
3 0

Answer:

Explanation:

The product cost is the cost that is related to the product.

Product cost = Direct materials used + Direct labor + manufacturing overhead

And, the period cost is that cost which is incurred according to the time. It covered mainly selling and administrative expenses  section

The computation of the period cost is shown below:

= Sales salaries expense + Depreciation on delivery trucks + Repairs to office equipment + Advertising expense + Office supplies used

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Imagine you have some workers and some handheld computers that you can use to take inventory at a warehouse. There are diminishi
Neporo4naja [7]

Answer: $1.25

Explanation:

Cost of inventorying a single item:

= (Cost of computer + Cost to employ worker per hour) / Items inventoried per hour

= (100 + 25) / 100

= $1.25

8 0
2 years ago
Renfroe Corporation is considering the purchase of a machine that would cost $22,712 and would have a useful life of 5 years. Th
Dennis_Churaev [7]

Answer:

option (A) 12%

Explanation:

Data provided :

Purchasing cost of the machine = $ 22,712

Useful life of the machine = 5 years

Net annual cash inflow generated per year = $ 6,300

Now,

at for the value for internal rate of return,

the present value of inflow = Present value of the outflow for the 5 years

let the internal rate of return be r%

thus,

$ 22,712 = \frac{6,300}{1.0r^1}+\frac{6,300}{1.0r^2}+\frac{6,300}{1.0r^3}+\frac{6,300}{1.0r^4}+\frac{6,300}{1.0r^5}

on solving the above relation, we get

r ≈ 12%

Hence, option A is correct

6 0
3 years ago
If you have loaned capital to a firm, then you could be.
Pachacha [2.7K]
Someone who has a claim on the cash flows of the firm. ... If you have loaned capital to a firm, then you could be... a manager.
6 0
2 years ago
What’s going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only compet
IceJOKER [234]

Answer: The answer is oligopolistic competition

Explanation:

Price can be defined as the amount of money for which a goods or services is been offered for sale by the sellers of the goods. It is a sum of money at which the seller and the buyer agrees to exchange a goods or services. The price of a product or services usually shows the cost of the product and the quality of a product or services been offered for sale by the sellers. When a business set a price for their products or services they usually takes into consideration factors such as survival, profit maximization, return on their investment, market share, and the business prestige.

The strategy of setting the same price with your competitors is called oligopolistic competition. In this case, if one competitor wants to be ahead of other competitors in the market, then such a competitor has to include in their product features that will not be found in the product of their competitors, through this process such a competitor would be ahead of their competitors in the market by having the larger share of the market.

7 0
2 years ago
What are a firm's key assets?
I am Lyosha [343]

Key assets represent knowledge that your business has that is critical to the operation of your business. ... Basically, anything about your business that is essential to its core operation would be considered a knowledge asset.

5 0
3 years ago
Read 2 more answers
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