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sveticcg [70]
3 years ago
14

True or false: When units produced are less than units sold, net income under absorption costing will be less than net income co

mputed under variable costing.
Business
1 answer:
Oliga [24]3 years ago
6 0

Answer:

True

Explanation:

Generally, net income will be the same under absorption costing and variable costing. However, producing fewer units than units sold will decrease the net income under absorption costing. As whatever the variable cost is under the absorption method, fixed manufacturing overhead remains the same that decreases the gross profit and net income. Under the variable costing, the fixed overhead will be calculated as per the units produced. Therefore, the net income will decrease proportionately.

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For 2018​, Pompi marketing managers project monthly sales of 460 comma 000 ​12-ounce bottles and 200 comma 000 ​1-gallon contain
Eduardwww [97]

Answer:

Budgeted total revenue = $424,000

Explanation:

<em>The revenue budget shows the expected amount sales income projected for the next coming accounting period for a business. It contains data about the expected ales volume for different products, their prices and the estimated sales revenue.</em>

Product         Price             Quantity              Revenue

Ounce             0.40             460,000               184,000

Bottles             1.20             200,000                <u>240,000 </u>

Total revenue                                                     <u>424,000 </u>

Budgeted total revenue = $424,000

           

6 0
3 years ago
On September 11, 2016, Home Store sells a mower for $450 with a one-year warranty that covers parts. Warranty expense is estimat
xeze [42]

Answer:

Date      Accounts Titles and Explanations     Debit        Credit  

Sept, 11           Cash                                             $450  

2016         Sales                                                               $450  

                (To record the Cash Sales)

Sept, 11        Warranty Expenses                         $40.50  

2016              ($450 x 9%)

                  Estimated Warranty Payable                   $40.50  

                 (To record the Warranty Expenses)    

July, 24       Estimated Warranty Payable             $32

2017             Repairs Parts Inventory                                       $32

             (To record the material taken from Inventory)

6 0
3 years ago
Privatisation refers to .... 
Nana76 [90]

Answer:

B)Transfer of assets from public to private

Explanation:

the government no longer owns the asset and it is traded to the private sector or when the company is taken over by a few people.

8 0
3 years ago
A firm has $1.5 million in sales, a Lerner index of 0.57, and a marginal cost of $50, and competes against 800 other firms in it
MrRissso [65]

Answer:

$116.28

Explanation:

This can be calculated as follows:

Mark up = [1 ÷ (1 - Lerner index)]

Price = Mark-up × Marginal cost

        = [1 ÷ (1 - 0.57)] × $50

Price = [1 ÷ 0.43] × $50 = $116.28  

Therefore, the price this firm will charge its customers is $116.28.

7 0
3 years ago
Nico is buying a home for $625,000. His earnest money deposit is 8%. He wants to avoid private mortgage insurance (PMI) on his c
qaws [65]

Answer: $106,250

Explanation: Conventional loans often require 20% down to avoid PMI ($125,000), and Nico has paid a $50,000 deposit ($625,000 x .08). Closing costs are $31,250 ($625,000 x .05).

He needs $106,250 to close ([$125,000 - $50,000] + $31,250).

4 0
3 years ago
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