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4 years ago

LO 6.5Under absorption costing, a unit of product includes which costs?

Business

1 answer:

earnstyle [38]4 years ago

5 0

Answer: direct material, direct labor, and fixed manufacturing overhead

Explanation: In calculating product cost in a manufacturing environment, there are two types of costing namely the variable costing method and absorption costing method.

Under absorption costing, a unit of product includes direct materials, direct labour, variable overheads and all fixed manufacturing overhead.

under this method, all variable cost as well as fixed cost are all included in the cost of a product.

Absorption costing is required by GAAP and so has to be using in preparing the financial accounts.

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The amount of the outstanding checks is included on the bank reconciliation as a(n) deduction from the balance per company's rec

Sphinxa [80]

Answer:

D) deduction from the balance per bank statement

Explanation:

A bank reconciliation statement is a document that matches the cash balance on a company’s balance sheet to the corresponding amount on its bank statement. Reconciling the two accounts helps determine if accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct. They also help detect fraud and any cash manipulations.

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3 years ago

The crowding-out effect works through interest rates to:  A. Increase the effectiveness of expansionary fiscal policy B. Decreas

neonofarm [45]

Answer: Option (B) is correct.

Explanation:

Suppose there is an increase in the government spending which means that it is a expansionary fiscal policy, this will also results in an increase in the government borrowings. Now, this increase in the government borrowings will increase demand for the loanable funds, as a result interest rate increases. This rise in the interest rate will lead to a reduction in investment spending.

Hence, the government spending crowding out the investment spending. Therefore, crowding out reduces the effect of expansionary fiscal policy.

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4 years ago

Mr. and Mrs. Jones had an extensive flood in their basement. They incurred casualty losses of $20,000. Their insurance company r

andreev551 [17]

Answer:

True

Explanation:

According to the IRS tax guidelines in such a case the unreimbursed amount is deductible as an itemized deduction from tax returns.

What this implies for Mr. and Mrs. Jones is that the $12,000 unreimbursed amount would be deducted from their tax return. Thus, reducing the amount of taxes to be paid by them.

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3 years ago

Bailey works as a self-employed golf pro at the local country club, allowing him to spend more time with his young family. he'll

jok3333 [9.3K]

Bailey has a lifestyle business. A lifestyle business is, simply put, a business that is run by someone with the main goal of simply sustaining a certain income and nothing more. It's main function is to allow the business owner to enjoy a particular lifestyle, in this case, for Bailey to spend more time with his family.

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3 years ago

Molly's Auto Detailers maintains its records on the cash basis. During 2018, Molly's collected $72,000 from customers and paid $

Otrada [13]

Answer: $49,000

Explanation:

Total Revenue:

= cash revenue + increase In accounts receivables + decrease in accrued liability

= $72,000 + $4,000 + $1,000

= $77,000

Net income accrual method:

= Total Revenue - cash expenses - depreciation expense - decrease in prepaid expenses

= $77,000 - $21,000 - $5,000 - $2,000

= $49,000

5 0

4 years ago