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LuckyWell [14K]
3 years ago
15

Which of the following statements is true of a normal costing system?

Business
1 answer:
Keith_Richards [23]3 years ago
3 0

Answer:

Option number 4 is correct,In a normal costing system, unit costs are determined by adding actual direct materials, actual direct labor, and estimated overhead.

Explanation:

This approach to costing that makes use of estimated overhead as against actual overhead is favored by Generally Acceptable Accounting Principles such as the International Financial Reporting Standards(IFRS) and the U.S GAAP in order to derive the unit cost of an item of inventory for financial reporting purposes.

This deviates completely from standard costing where the cost an item is entirely calculated from predetermined material,labor and overhead costs.

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Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule
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Solution :

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Depreciation        $100000  $100000 $100000  $100000  $100000  $100000

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Depreciation       $120000  $192000   $115200  $69000  $69000  $34800

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6 0
3 years ago
The search for and utilization of the best methods used by competitors and non-competitors that lead to superior performance is
eimsori [14]

Answer:

Bench-marking

Explanation:

Benchmarking is the process that works for comparing the products, services, etc by the other companies who are dealing with the same type of business that refers to the best in the industry or performing superior performance.

It could be done either by the cost, quality, time, quantity, etc

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7 0
3 years ago
Cool Logos buys​ logo-imprinted merchandise and then sells it to university bookstores. Sales are expected to be $ 2 comma 003 c
Scrat [10]

Answer:

<u>Cost of Goods Sold Budget</u>

                                                  October             November      

Cost of Goods Sold                $1,568,000          $1,664,600    

<u>Inventory Budget</u>

                                                  October              November

Total                                         $752,920            $772,800

<u>Purchase Budget</u>

                                                 October                November

Budgeted Purchases           $2,259,320            $2,397,880

Explanation:

<u>Cost of Goods Sold Budget</u>

Gross Profit Margin = 30% therefore Markup is 70%

                                                  October             November       December  

Sales                                       $2,240,000         $2,378,000     $2,520,000

Cost of Goods Sold (70%)     $1,568,000          $1,664,600      $1,764, 000

<u>Inventory Budget</u>

                                                  October                       November

Base Amount                          $420,000                       $420,000

Based on Sales (20%)            $332,920                        $352,800

Total                                         $752,920                       $772,800

<u>Purchase Budget</u>

                                                               October                       November

Budgeted Sales                                    $2,240,000                $2,378,000

Add Budgeted Closing Inventory           $752,920                   $772,800

Total Purchases Needed                     $2,992,920                 $3,150,800

Less Budgeted Opening Inventory       ($733,600)                 ($752,920)

Budgeted Purchases                            $2,259,320                $2,397,880

September Closing Stock is October`s Opening Stock

Therefore September Closing Stock = $420,000 + $1,568,000 × 20%

                                                             = $733,600

6 0
3 years ago
Need answer like, fast.
grigory [225]

Answer:

D

Explanation:

7 0
3 years ago
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