Answer:
The total product cost per unit under absorption costing is $15.38 per unit
Explanation:
Absorption costing : Under absorption costing, all costs which is assigned in the production is recorded in this costing method. It includes direct labor cost, direct material cost, variable overhead cost, fixed overhead cost, etc.
The computation of total product cost per unit is shown below:
= Direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit
where,
Direct material and direct labor per unit is given but variable overhead per unit and fixed overhead per unit is not given so first we have to calculate these two cost per unit. The calculation is shown below:
Variable overhead per unit = Total variable overhead cost ÷ expected units to be produced
= $41,400 ÷ 18,000
= $2.3 per unit
Now for Fixed overhead per unit = Total fixed overhead cost ÷ expected units to be produced
= $150,000 ÷ 18,000
=$8.33 per unit
So, total product cost per unit = Direct material per unit + direct labor per unit + variable overhead per unit + fixed overhead per unit
= $1.25 + $3.5 + $2.3 + $8.33
= $15.38 per unit
Hence, the total product cost per unit under absorption costing is $15.38 per unit
Answer: Option A
Explanation: Outsourcing can be defined as a situation in which a company hires another company for performing some activities that are non core for the hiring companies.
For, example a company having business of making soft drink might outsource its advertising activity.
One problem with outsourcing is that it leads to no internal control of the hiring company's management on that particular activity, leading to high probability of fraud or failure.
Thus, if an activity needs internal control it should not be outsourced.
Answer:
The correct answer is letter "D": Total variable costs decrease as the volume increases.
Explanation:
Total fixed costs are those that do not vary when the volume of production changes. However, unitary fixed costs change with fluctuations in production. As production increases, unitary fixed costs decrease and if production decreases unitary fixed costs increase.
Also, unitary variable costs remain the same in front of changes in output but total variable costs change directly proportional to variations in production.<em> It means if the volume in production increase so will total variable costs and vice versa.</em>
Answer:
$43,000
Explanation:
Implicit cost or opportunity cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
by starting his business, he forgoes the opportunity to earn 43k
The answer to the question given is (A) training to prepare for a career. This is because vocational tends to refer to things that are related to jobs or careers, which makes the other options not appropriate for the definition of a vocational training.
Although one can make a career out of her or his hobby, or improving one’s health, or improving relationships, the options do not state that the purposes of those three trainings are for making income, thus (A) is the best choice.
