Answer:
True
Explanation:
One of the assumptions of this analysis is that it assumes a linear dependence on costs and income in the analysis interval.
A very useful tool when making strategic decisions, allowing to analyze different scenarios and individual projects, is the Cost-Volume-Profit.
Analysis (CVP) that works under the premise that variable costs increase in the same proportion that increases the sales of a product, while the fixed ones are independent of the volume of sales.
The CVP is useful both for planning and for evaluating results since it emphasizes the behavior of variable costs and the impact that a variation in sales volume can have on costs and benefits.
Answer:
The amount of cash received is $2,910
Explanation:
Terms of 3/10, n/30 means there is a discount of 3% is available on payment of due amount within discount period of 10 days after sale with net credit period of 30 days.
As per given data
Sale = $4,600
Sales return = $1,600
Receivable = $4,600 - $1,600 = $3,000
As the payment is made within discount period, so discount will be availed on the amount due
Discount = $3,000 x 3% = $90
Payment by Customer = $3,000 - $90 = $2,910
Answer:
$289,000
Explanation:
Predetermined overhead rate (Fixed) = Budgeted Fixed overhead cost / Budgeted hours
Predetermined overhead rate (Fixed) = 300,000/60,000
Predetermined overhead rate (Fixed) = $5 per hours
Applied Fixed overhead = Standard hours allowed × Predetermined overhead rate(fixed)
Applied Fixed overhead = 57,800 * $5 per hours
Applied Fixed overhead = $289,000
So, the fixed overhead applied to production during the period is $289,000
