The statement III Aggregate plans often perform planning for fictitious/abstract products.
Combination-making plans refer back to the method of developing, retaining, and reading the approximate scope of the operations of a commercial enterprise corporation. It commonly includes targeted profits forecasts, stock stages, and manufacturing levels.
Aggregate planning is typically finished 365 days into the destiny. a few examples of combination making plans are hiring short people, shedding employees for a selected period, or bypassing education. This works as a powerful benchmark for diploma beneficial resource utilization and implementation.
The time period mixture means that the making of plans is completed for a single traditional measure of output or, on the maximum, a few aggregated product lessons. The purpose of aggregate planning is to set traditional output ranges within the near medium destiny in the face of fluctuating or unsure needs.
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For one to be able to reconcile the number of physical units using the weighted average method of process costing, one must determine if the units were completed or still in process at the end of the period.
<h3>What is weighted average method?</h3>
The weighted average cost method is known to be a kind of process that tends to divides the cost of goods that is available using the sale by the number of units that is present for sale.
Conclusively, To find a weighted average, one has to multiply all the number by its weight, then add all the results together.
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Answer:
(A) estimated annual costs and expected annual activity
Explanation:
The formula to compute the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours or estimated machine hours)
It is always calculated on the estimated amount and estimated annual activity i.e direct labor hours or machine hours
So the correct option is a.
Answer:
b. 9.75%
Explanation:
When a partner invests in a business, he/she expects to get return on his equity in the business. The major reason for this is to compare his/her return in the partnership business with the return he/she could get elsewhere.
The return on partner equity is calculated by dividing his/her net income from the partnership business by his/her average capital for the period.
The formula is given below:
<u> Net income </u> x 100
Average capital
Average capital = <u>Opening capital balance + Closing capital balance</u>
2
For Carter Pearson, the average capital is =<u> $55,500 + $62,500</u>
2
= $59,000
The return on equity will be: <u>$5,750 </u> x 100
$59,000
= 9.7457
= 9.75% - approximate to two decimal point.
