Answer:
The correct answer is letter "D": Overhead costs are high and there is considerable diversity among products.
Explanation:
Activity-Based Costing or ABC is a management accounting approach that assigns some indirect costs to goods incurring the bulk of certain costs. ABC is primarily used in the manufacturing sector to allow a proper estimate of the real cost of output per unit. ABC is mostly used when the firm offers a wide variety of products and their overhead costs are expensive.
Most businesses forego the use of ABC because the cost of introducing it exceeds the benefits of using it.
Answer:
produce too little of Good X. produce too little of Good X.
Explanation:
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
A good has negative externality if the costs to third parties not involved in production is greater than the benefits. an example of an activity that generates negative externality is pollution. Pollution can be generated at little or no cost, so they are usually overproduced. Government can discourage the production of activities that generate negative externality by taxation. Taxation increases the cost of production and therefore discourages overproduction. Tax levied on externality is known as Pigouvian tax.
Government can regulate the amount of externality produced by placing an upper limit on the amount of negative externality permissible
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
Blanchard Company manufactures a single product that sells for $280 per unit and whose total variable costs are $224 per unit. The company's annual fixed costs are $879,200. Management targets an annual pretax income of $1,400,000. Assume that fixed costs remain at $879,200.
A) Break-even point= (fixed costs + profit)/ contribution margin
Break-even point= (879,200 + 1,400,000)/(280 - 224)= 40,700 units
B) Break-even point (dollars)= (fixed costs + profit)/ contribution margin ratio
Break-even point (dollars)= 2,279,200/ (56/280)= $11,396,000
The answer is<u> "Claim will be paid and coverage will remain in force</u>".
After a policy has been in force for 2 (some of the time 3) years, it enters the incontestable period, in which the insurer may not deny a claim in view of data not uncovered at the time of application.
An Occurrence policy shields you from any secured episode that "happens" amid the policy time frame, paying little heed to when a claim is documented.
Answer:
$4,000
Explanation:
Given that,
Last year:
DVDs sold = 10
Selling price of each DVD = $20
DVD players sold = 5
Selling price of each DVD player = $100
This year:
DVDs sold = 150
Selling price of each DVD = $10
DVD players sold = 10
Selling price of each DVD player = $60
Real GDP:
= (No. of DVDs sold this year × Selling price of each DVD last year) + (No. of DVD players sold this year × Selling price of each DVD player last year)
= (150 × $20) + (10 × $100
)
= 3,000 + 1,000
= $4,000.