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3 years ago

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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4 years ago

Cline Manufacturing Company uses a job order system and maintains perpetual inventory records.

Vesna [10]

Answer:

1. Raw materials were purchased on account.

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Inventory was bought in credit so Payable is owed.

2. Issued a check to Dixon Machine Shop for repair work on factory equipment.

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Indirect materials are an overhead.

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8 0

3 years ago

8. Suppose that the demand for bentonite is given by Q = 40 − 0.5P, where Q is in tons of bentonite per day and P is the price p

Keith_Richards [23]

Answer:

The total profit is 612.5

Explanation:

First we need to find the profit maximizing quantity. Since the monopolist faces the entire demand his profit ( $\Pi$ )equation would be

$\Pi=Q\times P- 10 Q$

where PxQ is his revenue and 10Q is his total cost.

We can replace P in the above equation from the equation demand $Q=40-\frac{P}{2}\rightarrow P=80-2Q$

Then

$\Pi=Q\times (80-2Q)- 10 Q=80Q-2Q^2-10Q$

taking derivatives with respect to Q

$\frac{\partial \Pi}{\partial Q}=80-4Q-10=0$

then Q=17.5 and P=45.

The total profit is then 612.5

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3 years ago

The standard deviation of the market-index portfolio is 25%. Stock A has a beta of 1.80 and a residual standard deviation of 35%

kap26 [50]

Answer:

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Explanation:

Total variance = Systematic variance + Residual variance

= (β^2)Var(rM) + Var(e)

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3 years ago

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Answer:

The correct answer is lower.

Explanation:

The theory of rational expectations is a hypothesis of economic science that states that predictions about the future value of economically relevant variables made by agents are not systematically wrong and that errors are random (white noise). An alternative formulation is that rational expectations are "consistent expectations around a model," that is, in a model, agents assume that the predictions of the model are valid. The rational expectations hypothesis is used in many contemporary macroeconomic models, in game theory and in applications of rational choice theory.

Since most current macroeconomic models study decisions over several periods, the expectations of workers, consumers and companies about future economic conditions are an essential part of the model. There has been much discussion about how to model these expectations and the macroeconomic predictions of a model may differ depending on the assumptions about the expectations (see the web's theorem). To assume rational expectations is to assume that the expectations of economic agents can be individually wrong, but correct on average. In other words, although the future is not totally predictable, it is assumed that the agents' expectations are not systematically biased and that they use all the relevant information to form their expectations on economic variables.

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