Answer:
B) Direct materials are used to determine total inventoriable product costs.
Explanation:
Product costs includes direct materials, direct labor & manufacturing overhead.
This makes Choice B a description of direct materials in a manufacturing setting. All other choices are false.
Their is a chance to use direct labor as a basis for manufacturing overhead but not direct materials.
Direct materials can be separately and conveniently traced.
And finally, as stated above, direct materials are part of the finished product.
Answer:
The correct answer is letter "E": economies of scale.
Explanation:
Economies of scale mean productivity becomes more efficient as the number of goods produced increases. In most cases, companies that achieve economies of scale lower the average cost of their products by increasing production which is due to the spread of fixed costs required to produce the product among a large number of goods. Lower production costs typically represent lower prices for consumers.
Answer:
15%
Explanation:
The computation of the internal rate of return is shown below:
Given that
Year Cash Flow
0 -$27,100
1 $11,100
2 $14,100
3 $10,100
The formula to compute IRR is
= IRR()
After applying the above formula, the internal rate of return is 15%
Answer:
a) Direct labor (DL)
b) Direct materials (DM)
d) Variable manufacturing overhead (VOH)
f) Fixed manufacturing overhead (FOH)
Explanation:
Absorption costing method allocates to a product the direct costs: direct labor used in the production process, and the direct raw materials that were transformed into the product, and also allocates the two types of manufacturing overhead: variable and fixed.
Answer:
The Bert Corp. and Ernie, Inc.
The profit expected is:
= $2,875.
Explanation:
a) Data and Calculations:
The Bert Corp. Ernie, Inc.
IPO order placed 1,150 shares 1,150 shares
Underpriced by $18.00
Overpriced by $6.50
Profited expected $10,350 -$7,475
Net profit = $2,875 ($10,350 - $7,475)
b) The profit expected is generated from the underpriced stock. This profit is reduced by the increased cost incurred on the over-priced stock. Therefore, the net profit is the difference between the profit and the additional cost incurred.
