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Sladkaya [172]
3 years ago
6

If product costs are misclassified as selling costs, the average cost per unit will be understated.a. Trueb. False

Business
1 answer:
gladu [14]3 years ago
5 0

Answer:

Product costs are mostly prime costs (Variable cost). Now lets check where this misclassification occurs.

There are 3 stages of absorption costing.

Stage 1: Allocation

Stage 2: Apportionment

Stage 3: Absorption

Misclassification of product cost of product A occurs at Stage 1.

This means that the share of product cost of A, which is misclassified as selling cost will be equally shared with other products in the stage 2. This sharing of cost will lower the average cost per unit of product A and increase the average  cost per unit of other products. Hence, Its true.

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Which of the following indicates that the functional currency of a foreign subsidiary is the US dollar? Group of answer choices
andrey2020 [161]

Answer:

C) Sales markets of the foreign entity are primarily in foreign countries.

Explanation:

The US dollar is the most commonly used currency in the world, and most of foreign trade is carried out using the US dollar. If the foreign entity sells most of its production overseas (exports) then they will use the US dollar as their functional currency since all their exports will be valued in US dollars.

6 0
3 years ago
In "open market operations" to __________ M1, the securities held by a commercial bank (or the public) are exchanged for "cash"
Hoochie [10]

Answer:

expand

Explanation:

In "open market operations" to expand M1, the securities held by a commercial bank (or the public) are exchanged for "cash" from the Fed (the transfer of funds from the Fed to a bank.

The Fed buys securities from banks holding it, for money; so as to increase the supply of money in the economy.

4 0
3 years ago
Prepare a bank reconciliation as of October 31 from the following information:
kakasveta [241]

Answer:

              Bank Reconciliation Statement as of October 31

Particulars                       Amount    Particulars                     Amount

Balance as per bank          $350      Balance as per books    $806

Add: Late deposit               $433      Less: Returned checks   $80

Less: Outstanding check    $66       Less: Error recordings    $9

          ($24+$42)                                           ($65-$56)

Reconciled Balance           $717        Reconciled Balance       $717

3 0
3 years ago
During the year, Mark reports $90,000 of active business income from his law practice. He also owns two passive activities. From
andrezito [222]

Answer:

b. $90,000 with a $10,000 loss carryover

Explanation:

Given that

Active business income = $90,000

From Activity A, the income earns = $20,000

From Activity B, the loss incurs = $30,000

So by considering the above information, the Adjusted gross income should be

The $90,000 should be recorded

Plus, the $10,000 loss should also be carryover

The $10,000 loss is come from

= $20,000 - $30,000

= -$10,000

8 0
3 years ago
A company's Office Supplies account shows a beginning balance of $630 and an ending balance of $460. If office supplies expense
nalin [4]

The correct answer is that there was $3,080 worth of office supplies purchased during the period.

In order to answer this question you know that the company started with $630 worth of office supplies and ended the year with $460 worth, or $170 less than they started with. The company used $170 of supplies from inventory, so they needed to purchase another $3,080 in order arrive at the $3,250 that we know was the total expense during the reporting period.

5 0
3 years ago
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