All categories

3 years ago

Activity-based costing Question 4 options:

Business

1 answer:

Kitty [74]3 years ago

3 0

Answer:

The correct answer is A. allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.

Explanation:

The System of Costs Based on ABC Activities (Activity Based Costing) is a model that allows the allocation and distribution of the different indirect costs, according to the activities carried out, since these are the ones that really generate costs. This system stems from the need to solve the problem normally presented by standard costs, when they do not faithfully reflect the value added chain in the development of a particular product or service, and therefore, an adequate determination of the price.

The ABC cost model allocates and distributes indirect costs according to the activities carried out in the process of manufacturing the product or service, identifying the origin of the cost with the necessary activity, not only for production but also for distribution and sale; The activity is understood as the set of actions that aims to incorporate added value to the product through the manufacturing process. Complementing the definition of activity, it should be mentioned that the ABC Model is based on the fact that products and services consume activities, and these in turn are the ones that generate costs.

You might be interested in

While preparing your risk responses, you identify additional risks. What should you do? Add reserves to the project to accommoda

saw5 [17]

Answer: Document the risk and calculate the expected monetary value based on the probability and impact of the occurrences.

Explanation:

Risk response refers to the development of strategic options to reduce the threats and enhance opportunities to the objectives of the project.

It should be noted that when new risks are identified, such risks go through the process of risk management and one needs to be able to know the risk probability and risk impact and then get to curtail them.

8 0

3 years ago

If you offer up your car as a demonstration that you will pay off your loan to a bank or another financial lending institution,

xenn [34]

<h3>Hello there!</h3>

Your question asks if you offer up your car as a demonstration that you will pay off your loan, would your car be used as collateral?

<h3>Answer: True</h3>

The reason why your answer would be "True" is because you're offering up your car for something that could not be very certain to do.

If you offered your car as a demonstration to pay off your loan, but you don't pay off the loan, the bank has every right to take the car from you, due to the fact that the car is on collateral.

Collateral is known as something that is "forfeited" or "security" for a repayment of a loan.

In this situation, you're offering your car as collateral if you don't pay the loan back. And if you don't pay the loan back, you're going to forfeit your car to the bank in order for them to use it as a way to get money to pay off the loan themselves. Banks, bail bonds, etc. usually have people put things up for collateral to keep a "safe" measure for the loan, due to the fact that they're giving people instant money. It's just a "security" or "safety" procedure banks due in order to get something in return if the loan is not paid off, so they won't be losing money or leave empty handed.

<h3>I hope this helps!</h3><h3>Best regards, MasterInvestor</h3>

5 0

3 years ago

When do many companies expect to have a net loss

VLD [36.1K]

Every quarter the company can expect a loss

8 0

3 years ago

The public debt typically increases during recessions due to:

Brums [2.3K]

Because the government is out of money so they decide to take it from others

6 0

3 years ago

The management of Advanced Alternative Power Inc. is considering two capital investment projects. The estimated net cash flows f

AlexFokin [52]

Answer:

Wind turbine

NPV = $82,629.57

IRR = 10%

PVI = 1.09

Biofuel

NPV = $128,431.68

IRR = 12%

PVI = 1.14

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

NPV and IRR can be calculated using a financial calculator

Wind Turbine

Cash flow in year 0 = $-887,600,

Cash flow in year 1 - 4 = 280,000

I = 6%

NPV = $82,629.57

IRR = 10%

Biofuel

Cash flow in year 0 = $-911,100

Cash flow in year 1 - 4 = $300,000

I = 6%

NPV = $128,431.68

IRR = 12%

present value index = 1 + (NPV / initial cost of the the project)

Wind turbine

1 + ($82,629.57 / $-887,600 = 1.09

Biofuel

1 + ( $128,431.68 / $911,100) = 1.14

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

To find the IRR using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.

4 0

3 years ago