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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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3 years ago
Harbour View Company common stock has a $30 par value and is currently selling for $65. Industry analysts are predicting dividen
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The expected rate of return on this stock is 10.31%

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The constangt growth model of the DDM approach is used to calculate the price of a share based on the edxpected future dividends from a stock that are growing at a constant rate. The formula for price using constant growth model is,

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Equipment is a non modern-day or long-term asset account which reports the fee of the equipment.

Equipment will be depreciated over its beneficial lifestyles by debiting the income assertion account Depreciation Expense and crediting the balance sheet account Accumulated Depreciation (a contra asset account).

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When gear is purchased, it is no longer in the beginning said on the earnings statement. Instead, it is reported on the stability sheet as an increase in the constant property line item.

Learn more about long term asset here:

<h3>brainly.com/question/9929994</h3>

<h3>#SPJ4</h3>
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