ABC costing might lead to: increasing the sales price of low-volume products.
- An organization's activities are identified using the activity-based costing (ABC) technique, which then allocates the cost of each activity to each product and service depending on how much of each is actually consumed. In contrast to traditional costing, this methodology assigns more indirect expenses (overhead) into direct costs.
- ABC is a technique for allocating overhead and indirect costs, such salaries and utilities, to goods and services. The ABC system of cost accounting is built around activities, which are defined as any occasion, project, or task with a clear objective.
- The costs associated with each product are divided by the quantity of units produced to determine the per-unit overhead costs under ABC.
Thus this is the answer.
To learn more about ABC costing, refer:brainly.com/question/26647034
#SPJ4
Answer:
B. Units transferred to the next department × Cost per equivalent unit
Explanation:
Cost per equivalent unit refers to the cost of each completed unit possible.
As there is not only the units which are complete, but newly introduced and those in work in progress, and therefore, the cost of each equivalent unit is calculated so that it computes the cost for each unit.
Accordingly, all the units which are completed and transferred to another department are complete and the equivalent cost of completion of each unit shall be allocated to those units.
Therefore, correct option is:
Option B.
The answer to this question is "BASELINE". It is the term used to describe a benchmark used to make sure that a system provides and gives a minimum level f security across multiple applications and also across different products. This term baseline also refers and commonly known as the minimum or the starting point.
Letter A and B are absolutelly incorrect. I think it is C... Not sure
Answer: With a loss
Explanation:
The firm here has its Marginal cost higher than it's marginal revenue.
This means that for every additional unit sold, the company is incurring a loss of $0.50 which is the difference between the marginal cost and the marginal revenue.
The company is therefore operating at a loss because every additional unit is costing them instead of benefitting them. To counter this, they need to reduce production so that marginal cost will fall.