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Ierofanga [76]
3 years ago
5

The manufacturing cost per unit for absorption costing is:

Business
1 answer:
saveliy_v [14]3 years ago
3 0

Answer:

Always higher than manufacturing cost per unit for variable costing.

Explanation:

Absorption costing continuously contains fixed overheads similarly while computing the manufacturing cost.  

Conversely, under variable costing only adjustable overheads were included.

Thus, the manufacturing cost under absorption costing method is always higher than variable costing method  

Therefore, per unit cost will always be higher under absorption costing than in variable costing.

So, option C is the correct option

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A loan of $100,000 is taken out which requires an annual interest payment of 6% of the borrowed amount of money (in market dolla
pav-90 [236]

Answer:

C. $5,150

Explanation:

Calculation for what will be the value of interest payment at the end of fifth year in real dollars

First step is to calculate the Interest amount per year

Interest amount per year = 100,000*6%

Interest amount per year = $6,000

Now let calculate the value of interest payment at the end of fifth year in real dollars

Value of interest payment in 5th year in real dollars = 6,000/(1+3.1%)^5

Value of interest payment in 5th year in real dollars= 6,000/1.164913

Value of interest payment in 5th year in real dollars= $5,150

Therefore the Value of interest payment in 5th year in real dollars will be $5,150

4 0
3 years ago
A car manufacturer offers either​ $2,000 cash back or zero percent financing for 5 years. A rational consumer will always take t
tester [92]

Answer:

The answer is: true

Explanation:

Rational behaviour entails making decisions or taking actions that result in maximising utility or satisfaction. The time value of money dictates that the opportunity cost of foregoing earning potential today is the interest accrued on the savings for future use. A rational consumer who wants to maximise utility will always take the $2,000 dollar cash back since the implicit interest incurred by taking the 0% financing results in a lower future value (in 5 years).

4 0
2 years ago
Concord sold goods costing $63,000 to Lisa Company FOB shipping point on December 28. The goods are not expected to reach Lisa u
Leni [432]

Answer: $204,600

Explanation:

a. These goods are not part of Inventory as they were shipped FOB Shipping point which means Lisa Company took ownership when the goods were shipped.

b. These goods were shipped FOB destination to Concord and were still in transit so will not impart Inventory. FOB destination means Concord will take ownership when they receive the goods.

c. These goods were shipped to Concord FOB shipping point before the year ended so have to be included in Inventory.

d. These goods should be included in Inventory because Concord shipped them FOB destination which means they still have ownership at year end.

e. These goods were shipped FOB destination and were only received after the period ended so SHOULD NOT be included in Inventory as Concord had not taken ownership at year end.

f. The goods on consignment should be included in Inventory which they were so there is no effect.

Ending inventory is $183,000 from question.

Inventory at period end is therefore;

= 183,000 + 25,000 + 39,300 - 42,700

= $204,600

5 0
3 years ago
You will do best if your keep your sales call under
never [62]
Control introduce yourself and your company and express gratitude and remember names that goes a long way.
8 0
3 years ago
According to the information provided in exhibit 9-7, if the rudd ice company was a monopoly and is currently charging a price o
miss Akunina [59]

Answer:

Increase price and reduce output.

Explanation:

A monopoly refers to when a company and its product offerings dominate one sector or industry.

Monopolies can be considered an extreme result of free-market capitalism and are often used to describe an entity that has total or near-total control of a market.

Natural monopolies can exist when there are high barriers to entry; a company has a patent on their products, or is allowed by governments to provide essential services.

3 0
3 years ago
Read 2 more answers
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