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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.

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The market price of Friden Company's common stock increased from $15 to $18. Earnings per share of common stock remained unchang

WINSTONCH [101]

Answer: Option (C) is correct.

Explanation:

Given that,

Old market price of stock = $15

New market price of stock = $18

Here, we assume that EPS be $5.

So,

Price-earning ratio at old price = $\frac{Market\ Price}{EPS}$

= $\frac{15}{5}$

= 3

Price-earning ratio at New price = $\frac{Market\ Price}{EPS}$

= $\frac{18}{5}$

= 3.6

Hence, price-earnings ratio increases.

7 0

3 years ago

g On June 30, the value of the account is 157.50. On December 31, the value of the account is X. Using the time weighted method,

irga5000 [103]

Answer:

236.23

Explanation:

The computation of X is shown below:-

As per the time-weighted method

The 6-month yield

= (40 ÷ 50) × (80 ÷ 60) × (157.50 ÷ 160) - 1

= 5%

Annual equivalent = (1.05)^2 - 1

= 10.25%

1 - year yield = (40 ÷ 50) × (80 ÷ 60) × (175 ÷ 160) × (X ÷ 250) - 1

= 0.1025

X(0.004667) = 1.1025

X = 236.23

Therefore on December 31st the value of account of X = 236.25

4 0

3 years ago

Thomas is the owner of a landscaping company that caters to a very wealthy clientele. His company has struggled to differentiate

ankoles [38]

Answer: The correct option is C.

Explanation: From the scenario given above, we can see that Thomas has not shown any intention to replace the expensive team members, the only option in this case would then be to properly utilize their expertise to the advantage of the company.

In order to do this therefore, a SWOT analysis would need to be carried out and utilized in gaining an edge over the competition.

In this case, Thomas would make sure that the expertise of all his team members are brought to bare, the company would analyze the competition to see where it is lacking in customer satisfaction, and then try to gain the upper hand by including features in their product that the competition does not have in theirs.

This strategy will help in achieving a competitive advantage.

5 0

3 years ago

Read 2 more answers

As a firm's sales grow, its current assets also tend to increase. For instance, as sales increase, the firm's inventories genera

yanalaym [24]

Answer: True

Explanation:

Current assets are the assets that a company had and which are expected to be either used or sold over the next year. Examples of current assets are cash, cash equivalents, stock inventory, accounts receivable, marketable securities, and other liquid assets.

It should be noted that when the sales of a from continue to grow, the current assets of such company also increases. An example is when there is an increase in the sales increase, this.will also have an impact on the firm's inventories as there will be an increase.

6 0

3 years ago

Joe Santos owns the only pizza parlor in a small town that is also home to a McDonald's, a Taco Bell, and a Kentucky Fried Chick

astra-53 [7]

Answer:

True

Explanation:

A more precise way to describe the situation is that Joe's pizza parlor is a monopolistic competition. But that definition considers that all 'food' items have some degree of close substitute relation.

But yes, if you consider this two conditions:

a broad definition of monopoly
other restaurants are not considered close substitutes for the food sold at the pizza parlor

Then yes, Joe has monopoly

5 0

3 years ago