The examples mentioned above are examples of non-market distribution method, Non-market distribution method is a process wherein the distribution products, services, and goods does not have profit motivation. In most cases, products, goods, and services are offered for a low price.
Answer:
B. $270,000.
Explanation:
The computation of the total overhead cost is shown below:
But before that first we have to find out the variable overhead per hour which is
= $90,000 ÷ 15,000
= $6 per hour
Now
Variable overhead for 25,000 hours is
= $6 per hour × 25,000
= $150,000
So,
Total overhead cost is
= Variable overhead for 25,000 hours + Fixed overhead cost
= $150,000 + $120,000
= $270,000
hence, the correct option is B. $270,000
Answer:
The correct answer is B
Explanation:
Purchase is the term which is defined as the bought or purchase of raw material that is necessary or required for the business in order to create or manufacture goods or services. So, that the product could be presented into the market for sale and the business could make profit from the sale of product.
So, the statement is false as the acquisition of material is charged to the purchase account.
Answer:
To determine the closing balance of retained earnings
Explanation:
First and foremost, retained earnings are an important part of the shareholders' equity. In a bid to ascertain the correct position of total shareholders' equity at year-end, it is important that a statement of retained earnings reconciling the opening retained with net income and dividends declared during the year is prepared.
The balance at the end of the year is the total accumulated earnings which have not been distributed to shareholders as dividends or which may be used to finance projects that increase shareholders' wealth
