Answer:
C. Allocation of fixed manufacturing costs are arbitrary at best.
Explanation:
A.- Yes, fixed cost occurs regardless of the level of production, but <em>that is true for every costing method,</em> and some of them do calculate a unit rate for fixed overhead. the statment is partially true
B.- If fixed cost changes with the level of production then, are variable cost, not fixed. Statement is FALSE
C. The allocation of fixed manufacturing costs is arbitrary at best. This is the reasoning for variable costing to consider fixed cost expenses, the method of allocating cost, using a rate always generates a difference in applied and overapplied MO It generates distortions and is not objective, it is based on personal option. The use of direct labor hours, cost or machine hours is evidence of that. TRUE
D.- There is such a cost, like depreciation, but <em>others do incur in cash disbursements,</em> like rent, indirect materials, supervisors, maintenance cost and others.is Statment is FALSE
Answer:
The answer is: Future oil prices were expected to be lower.
Explanation:
If the suppliers of oil believe that oil price will decrease in the future, they will increase the current quantity supplied of oil to take advantage of the current higher prices. The suppliers have a limited time span to benefit from high prices (higher profit margins) before the price starts to lower as well as their profit margins.
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
I tink the answer is C or B but i'm picking B
Answer:
True
Explanation:
Collateral is an asset used as a guarantee or security for the payment of a loan. It assures the lender that a borrower will pay back the loan.
If an entrepreneur applies for a business loan, the bank will most likely demand collateral. The entrepreneur will need to offer an asset, either property or motor vehicle, that will act as a guarantee for the loan. Should the entrepreneur fail in repayment, the bank can sell the asset to recover their money.
Few, if any, will lend anyone money based on a business idea alone. Many banks will demand a business proposal to be backed with some guarantee to secure funding.