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3 years ago

Which of the following statements is true of an activity-based costing system?

Business

1 answer:

eimsori [14]3 years ago

7 0

Answer:

The correct answer is A. It uses separate predetermined overhead allocation rates for each activity.

Explanation:

he ABC cost model allocates and distributes indirect costs according to the activities carried out in the process of manufacturing the product or service, identifying the origin of the cost with the necessary activity, not only for production but also for distribution and sale; The activity is understood as the set of actions that aims to incorporate added value to the product through the manufacturing process. Complementing the definition of activity, it should be mentioned that the ABC Model is based on the fact that products and services consume activities, and these in turn are the ones that generate costs.

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Compton Company expects the following total sales: Month Sales March $ 20,000 April $ 10,000 May $ 34,000 June $ 15,000 The comp

Shalnov [3]

Answer:

The accounts receivable balance on May 31 is $17850

Explanation:

First we need to determine the amount of credit sales for the month of May. The credit sales for May will be 70% of the total sales for May. Thus, the credit sales for May are,

Credit sales- May = 34000 * 0.7 = $23800

The accounts receivable balance at the end of May will contain the amount due from credit sales that are made in May that are still not collected and will be collected in the next month as per the company's policy.

Accounts receivable at the end of May = 23800 * 0.75 = $17850

8 0

3 years ago

GDP calculated via factor payments includes: a consumption, investment, and government. b wages, interest payments, rent, and pr

erica [24]

Answer:

b wages, interest payments, rent, and profits

Explanation:

The GDP refers to the Gross domestic product which reflects the finalized market value of the goods and services that are to be produced within the country

Plus According to the factor payments, the GDP are to be calculated based on wages, interest payments, rents, and profits and the same is to be considered while calculating the GDP

8 0

3 years ago

Suppose that the demand curve for compact disks is given by P = 600 – Q and that the supply curve is given by P = 0.5 Q, where Q

otez555 [7]

Answer: -0.5

Explanation:

From the information given,

Demand curve = P = 600 – Q

Supply curve = P = 0.5Q

Equilibrium = Qd = Qs

Therefore, 600 - Q = 0.5Q

600 = Q + 0.5Q

600 = 1.5Q

Q = 600/1.5

Q = 400

Since P = 600 - Q

P = 600 - 400

P = 200

Price elasticity will be:

= (dQ/dP) × (P/Q)

=(-1) × (200/400).

= -1 × 0.5

= -0.5

The price elasticity is -0.5

7 0

2 years ago

Your coin collection contains 59 1952 silver dollars. required: if your grandparents purchased them for their face value when th

ololo11 [35]

The coins were purchased in 1952 for their face value, one dollar per coin. This puts total face value at 59 dollars in 1952. They appreciate at 6.6% per year, so in 101 years, their value can be found through this calculation: 59 x (1.066^101) = $37,525.78.

7 0

3 years ago

Selected financial statement information and additional data for ABC Co. is presented below. Prepare a statement of cash flows f

ELEN [110]

Answer:

1. $175,800

2. -$41,200

Explanation:

The preparation of the Cash Flows from Operating Activities and investing activities —Indirect Method are shown below:

1. Cash flow from Operating activities - Indirect method

Net income $240,200

Adjustment made:

Add : Depreciation expense $31,600

Less: Increase in accounts receivable -$60,200 ($144,200 - $84,000)

Less: Increase in inventory -$33,600 ($201,600 - $168,000)

Add: Increase in accounts payable $35,600 ($86,000 - $50,400)

Less: Decrease in short term notes payable -$37,800 ($29,400 - $67,200)

Total of Adjustments - $64,400

Net Cash flow from Operating activities $175,800

2. Cash flow from Financing activities

Add: Sale of land $42,800 ($58,800 - $16,000)

Less: Purchase of equipment - $84,000

Net Cash flow from Financing activities -$41,200

8 0

3 years ago

Which of the following statements is true of an​ activity-based costing​ system?

Which of the following statements is true of an activity-based costing system?