Answer:
a. The division of activities into unit level, batch level, product sustaining level and facility level categories is commonly known as cost.
Explanation:
The managerial accounting is important for any service business. McDonalds have service business and they run on zero tolerance for disruption in consumer service. Management accounting enables to identify cost for product sustaining and batch producing.
Here is my answer. DECREASING THE MONEY SUPPLY AND RAISING THE INTEREST RATES is what happens when the Treasury Bonds are being sold by Fed on the open market. An open market is also the same with free market wherein there are only minimal restrictions. Hope this helps.
Answer:
a. The price that the company should sell the new toy at if it prices at cost plus profit at 100% profit markup is:
= $20.
b. The price that the company should sell the new toy at if it prices using competitive pricing is:
= $22.50 (average of competitors' prices)
c. The price that the company should sell the new toy at if it prices using penetration pricing is:
= $20 (lowest market price)
d. The price that the company should sell the new toy at if it prices using price skimming is:
= $25.
Explanation:
a) Data and Calculations:
Cost of producing a new toy = $10
Competitors' prices are:
Product A – $25
Product B – $20
Product C – $23
Product D– $22
Total = $90
Average price = $22.50 ($90/4)
Cost = $10
Markup 10 ($10 * 100%)
Price = $20
b) An important consideration in the pricing of products is customers' and competitors' reactions to the firm's selling price. The purpose of considering customers is to ensure that enough demand is generated to cover production cost and make profits. Competitors can wage price wars to discourage new entrants into their markets. Many pricing methods are in use, depending on the prevailing market realities.
Answer:
Dr Inventory Purchases $250
Cr Trade Payables $250
Explanation:
At the time of the purchase, Inventory purchases which is an asset in nature has been increased and hence must be debited by $250 and similarly the Payable has been increased which is liability in nature and hence must be credited with $250. The entry would be as under:
Dr Inventory Purchases $250
Cr Trade Payables $250
Answer:
$764,400
Explanation:
Given that,
Net income under variable costing = $772,200
Beginning inventories = 7,800 units
Ending inventories = 5,200 units
Fixed overhead per unit = $3
Net income under absorption costing:
= Net income under variable costing - [(Beginning inventories - Ending inventories) × Fixed overhead per unit]
= $772,200 - [(7,800 - 5,200) × $3]
= $772,200 - $7,800
= $764,400
