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3 years ago

Indirect costs are traced to cost objects.

Business

1 answer:

Aneli [31]3 years ago

8 0

Answer:

Explanation:

The following statement is false and true

1. Indirect costs are traced to cost objects - This statement is false because it is not directly traced to the cost objectives. It is traced through the cost drivers.

2. Yes, this statement is true because the cost drivers are used to allocate the indirect cost to their cost objects

3. Yes, this statement is true because for computing the allocation rate, we have to divide the total allocation cost to its allocation base

4. Yes, this statement is true because the cost drivers play very important for cost allocation. Without cost drivers, the allocation of the cost would not be possible

5. This statement is false because depreciation should be allocated based on its useful life rather than the number of square feet because the number of square feet occupied is used to allocate the renting cost

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Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to , and man

yanalaym [24]

Complete Question:

Company uses the percent-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $500,000, and management estimates 2% will be uncollectible. The amount of expense to report on the income statement was $8,000. The Allowance for Uncollectible Accounts prior to adjustment has a credit balance of $2,000. The balance of Allowance for Uncollectible Accounts, after adjustment, will be

Answer:

The balance of Allowance for Uncollectible Accounts, after adjustment, will be

$10,000

Explanation:

a) Data and Calculations:

Net credit sales = $500,000

Uncollectible estimate = 2% of net credit sales

Uncollectible Accounts expense = $8,000

Allowance for Uncollectible Accounts = $2,000 before adjustment

Allowance for Uncollectible after adjustment = $500,000 * 2% = $10,000

6 0

3 years ago

Property taxes on a manufacturing plant should be classified as which type of cost?

olganol [36]

Answer:

Explanation:

Property taxes on a manufacturing plant should be classified as a product cost but not a period cost. This is because product costs refers to the costs that you have to pay in order to continue production. This costs include labor, supplies, utilities, materials and even property taxes to maintain the facility open. While period costs refers to selling various other expenses taken on by administration but does not include property taxes.

5 0

3 years ago

Can you solve this activty for me please got stuck,

Katyanochek1 [597]

Answer:

a. The marginal product of each white worker is 143%

b. The marginal product of each black worker is 70%

c. Since, adjusted wage of black labor with d=0.2 is less than the wage of white labor of $2,000, the profit maximizing firm would hire only black labor.

Since, adjusted wage of black labor with d=0.8 is greater than the wage of white labor of $2,000, the profit maximizing firm would hire only white labor.

d. Value of D coefficient that allows to employ black and white labor is 0.43

Explanation:

According to the given data we have the following:

Weekly wage for white labor is $2,000

Weekly wage for black labor is $1,400

production function is Q = 10(EW + EB)

manager production function is Q = 10EW + 10(1 – d) EB

Price of the product is $240

Weekly output is 150 units

a. To calculate the value of the marginal product of each white worker we use the following formula:

marginal product of each white worker=Weekly wage for white labor/Weekly wage for black labor

marginal product of each white worker=$2,000/$1,400

marginal product of each white worker=1.43=143%

b. To calculate the value of the marginal product of each black worker we use the following formula:

marginal product of each black worker=Weekly wage for black labor/Weekly wage for white labor

marginal product of each black worker=$1,400/$2,000

marginal product of each black worker=0.7=70%

c. To describe the employment decision we have to calculate the adjusted wage of black labor with d=0.2 and d=0.8 as follows:

adjusted wage of black labor with d=0.2=Wage black(1+D coefficient)

=1,400(1+0.2)

=1400(1.2)

=1,680.

Since, adjusted wage of black labor with d=0.2 is less than the wage of white labor of $2,000, the profit maximizing firm would hire only black labor.

adjusted wage of black labor with d=0.2=Wage black(1+D coefficient)

=1,400(1+0.8)

=1,400(1.8)

=2,520

Since, adjusted wage of black labor with d=0.8 is greater than the wage of white labor of $2,000, the profit maximizing firm would hire only white labor.

d. To calculate for what value(s) of d is a firm willing to hire blacks and whites we would have to calculate the following formula:

Wage black(1+D coefficient)=Wage white

1,400(1+D coefficient)=2,000

(1+D coefficient)=2,000/1,4000

D coefficient=1.43-1

D coefficient=0.43

Value of D coefficient that allows to employ black and white labor is 0.43

4 0

3 years ago

Sara had a final interview with a cosmetic company that she has dreamed of working for. She arrived 10 minutes early to the inte

DochEvi [55]

Answer: d

Explanation: I would say she asked about pay before she was offered the position

8 0

3 years ago

Read 2 more answers

Some investment projects require that a company increase its working capital. Under the net present value method, the investment

Fofino [41]

Answer:

C) both an initial cash outflow and a future cash inflow.

Explanation:

Net present value method: The initial investment is subtracted from the discounted cash inflows of present value in this approach. If the sum is positive than the project, otherwise it is not beneficial to the company.

In mathematically,

Net present value = Present value of all annual cash inflows after the discount factor is applied - initial investment

The change in working capital impact the initial cash outflows and future cash inflows i.e net present value

7 0

2 years ago