During the three-month period, the plant is not able to produce anything because it shut down. Hence, its variable cost is equal to zero, however, during this period, the fixed cost is still greater than zero because of the process that needs to be done in order to ensure that once the plant is restarted.
For the reason stated above, the most likely answer to this item is the first choice.
Answer:
C. Both A and B
Explanation:
Operation Costing:
is the acccount of process costing until there is a split-point when the costing systems moves to job system.
This means the materials are calculate with calculate with process costing. And then there is a degree of customization which makes the job costing useful.
(A) FALSE is the other way around. The system use process costing until split point, when it switch to job costing for specific procedures.
(B) FALSE
An automobile manufacturer do the same car over and over.
There is no difference between the car. It will use process costing.
Managing quality helps build successful strategies of "differentiation, low cost and response".
<u>Answer:</u> Option C
<u>Explanation:</u>
The expression of supervising all operations and activities necessary to maintain the rate of competence required, thus understood as "Quality management". It involves defining a performance policy, establishing and enforcing quality scheduling and expectation, as well as quality control and enhancing quality.
In order to attract market, launch of unique product is necessary with pocket friendly price and good quality too. When quality is managed more according to the market need than the owners capability of finance, then only growth of firm is possible, thus quality of product should not be compromised.
Take $1,150,000 multiply by 15% to get the money increase between 1 years which is $172500 then take $1,150,000 subtract by $172,500 to get the final sales in 2015 which is $977,500
Answer:
The change in the dollar amount of inventory is $200 due to change in the inventory costing method.
Explanation:
The variable cost per unit is $6.00 while the fixed cost per unit is $2.00
Variable cost per unit = $6.00
Absorption cost pet units = $8.00
Total cost under absorption costing = Absorption cost per unit / number of units in ending inventory
Total absorption cost = $8.00 × 100 = $800
Total cost under variable cost = Variable cost per unit × number of units in ending inventory
Total variable cost = $6.00 × 100 = $600
Change in cost = Total absorption cost - Total variable cost
Change in cost = $800 - $600 = $200
