Answer:
The correct answer is A: All of the answer are correct
Explanation:
ABC defines production as consisting of a variety of activities, and it assigns costs to those activities. An activity cost pool is an aggregate of all the costs associated with performing a particular business task, such as making a particular product. By pooling all costs incurred in a particular task, it is simpler to get an accurate estimate of the cost of that task.
Cost pool is created for those costs more closely aligned with the production of goods or services. It is very common to have separate cost pools for each product line. If production batches are of greatly varying lengths, then it has to consider creating cost pools at the batch level, so that it can adequately assign costs based on batch size.
To conclude, the creation of a cost pool and the subsequent assignment of costs will vary according to the length of production and the possibility to discriminate and assign costs.
Answer:
7.74%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $1,180
Assuming figure - Future value or Face value = $1,100
PMT = $105
NPER = 5 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this, the answer would be 7.74%
Answer: $12,113.14
Explanation:
Find out the future value of each payment 20 years from now then sum up the values.
Year 1:
= 250 * ( 1 + 15%)¹⁹
= $3,557.94
Year 2:
= 300 * ( 1 + 15%)¹⁸
= $3,712.636
Year 3:
= 450 * ( 1 + 15%)¹⁷
= $4,842.5688
Future value of all:
= 3,557.94 + 3,712.636 + 4,842.5688
= $12,113.14
Answer:
a debit to Accounts Payable for $1,400 and a $1,400 credit to Purchase Returns allowances
Explanation:
Periodic inventory system is one that updates information on inventory on a periodic basis. This is opposite of perpetual inventory system that requires update of inventory system at all times.
In the scenario the merchandiser bought the goods on account. That means he did not pay cash but rather bought on credit.
On purchasing the items accounts payable will be credited thereby increasing the account balance.
Since the items are being returned a debit will be applied to accounts payable resulting in a decrease in the account balance.
A credit will now be posted to purchase returns allowances to show that products have been returned by a buyer
Answer:
Shut down as P < AVC.
Explanation:
Given that,
Selling price = $24
Average variable cost = $25
Average total cost (ATC) = $30
Marginal cost = $24
He should shut down because the price received by him for the product is less than average variable cost. He should shut down its operations because he won't be able cover the average variable cost associated with the production of the product.
Price = $24 which is less than average variable cost of $25.
If he will be able to cover its variable cost then he will continue operating in this market condition.