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4 years ago

The basic cost flow model applies only to physical units and not to costs. Group of answer choices True False

Business

2 answers:

MrRa [10]4 years ago

8 0

Answer:

The statement is: False.

Explanation:

Cost flows refer to the forms costs flow in an out a company. The cost flow model is used to compare perpetual and physical inventory and is calculated by taking the <em>balance of the firm at the beginning of the year</em> adding the <em>transfers that flow in</em> and subtracting all the <em>transfers flowing out</em> the company. The result will be the ending cost flow balance.

Eddi Din [679]4 years ago

3 0

Answer:

False

Explanation:

The basic cost flow model is used for inventory, and the formula is:

(Starting balance)+(Incoming Cost)-(Outgoing cost) = Ending balance

Starting balance = represents cost of resources that have been used so far.

Incoming cost = represents cost from previous periods.

Outgoing cost = represents cost attributed to goods ready for sale.

Ending balance = is the cost at the end of period under consideration.

So as can be seen in the formula, basic cost flow also involves costs. So the statement is False

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2 years ago

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3 years ago

Which of the following situations could cause a budget deficit for the federal government?

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3 years ago

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A review of the accounting records of Perez Manufacturing indicated that the company incurred the following payroll costs during

pochemuha

Answer:

a. $363,000

b. $827,200

Explanation:

The calculations are given below:

a. Payroll cost is

= Salary of the company president + Salary of the chief financial officer + Salary of the vice president of marketing + Salaries of administrative secretaries + Commissions paid to sales staff

= $75,000 + $42,000 + $40,000 + $60,000 + $146,000

= $363,000

And, for computing payroll cost included in the cost of goods sold first we have to find out the total cost i.e given below:

= Salary of the vice president of manufacturing + Salaries of middle managers (department heads, production supervisors) in manufacturing plant + Wages of production workers + Salaries of engineers and other personnel responsible for maintaining production equipment

= $50,000 + $147,000 + $703,500 + $133,500

= $1,034,000

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= Total cost × sales units ÷ number of units produced

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