Answer:
following are the solution to this question:
Explanation:
The key factors for IKEA's growth are as follows:
It made simple to use goods as well as the technique of "do it yourself" allows employees to increase costs lower, prices fair, a good understanding of the population it wants to target, goods clean with a clear aesthetics.
These were also regarded for fair payer money for staff and vendors, as well as the mechanism is open. Its shops also provide accommodation for the whole family.
Management accounting is an area of accounting known for providing information to internal users.
<h3>What is management accounting?</h3>
Management Accounting is an area of accounting that refers to providing information to support internal management decisions. This accounting assist managers identify problem areas in budgeting and then develop a different plan to addressing those problems.
The role of management accounting includes:
- Monitoring costs
- Conduct audits
- Identify past trends and predict future needs.
Therefore, the area of accounting concerned with providing internal users with information is known as management accounting.
Learn more about management accounting here : brainly.com/question/1283492
Answer:
<u>Stock-out</u> cost
Explanation:
Stock out is a scenario in business where a company sells all available units of a product and runs out of inventory for that product. <u>When this happens, the organization loses revenue as it cannot meet the subsequent demands of customers</u>.
This cost incurred is known as stock out cost.
So, <em>even though Jeff Murrah, the sales manager, was delighted with the product's success, his excitement was overshadowed by the </em><u><em>stock out cost</em></u><em> his division would incur.</em>
Answer:
$510,130
Explanation:
Costs can be classified into two categories: Product Costs and Period Costs. Product costs are the manufacturing costs that are incurred in the production of goods and services. Under absorption costing, product costs include direct materials, direct labor, indirect materials, indirect labor, and other factory overhead. These costs are capitalized and expensed out when related goods and services are sold out.
On the other hand, period costs are selling & administrative expenses. These costs are never capitalized and expensed out in the statement of profit or loss as soon as incurred. Examples of period costs are advertisement expenses, depreciation expenses (not related to factory), sales commissions, administrative salaries and wages.
<u>Calculation of Period Costs</u>
Advertising costs $12,000
CEO's salary 460,000
Delivery vehicle depreciation 1,230
Administrative wages and salaries 36,900
Total Period Costs $510,130
Part 1.1 - Variable overhead cost incurred to fill the order for the 120,000 items is $7,800.
Part 1.2 - Difference between standard and actual variable overhead cost is $440.
Part 3
- Difference between standard and actual variable overhead cost is $440.
<u>Explanation:</u>
It is given that the number of order is 120,000 items and calculated standard variable overhead cost per order for one item is $0.065. Variable overhead cost incurred to fill the order for the 120,000 items can be calculated by multiplying the number of order of the items with the calculated standard variable overhead cost per order for one item. Hence, the variable overhead cost incurred to fill the order for the 120,000 items is $7,800.
It is given that the actual variable overhead cost is $7,360 and calculated standard variable overhead cost is $7,800. Difference in standard and actual variable overhead cost can be calculated by deducting the actual variable overhead cost from the standard variable overhead cost. Hence, the difference between standard and actual variable overhead cost is $440.
Calculated variable overhead rate variance is $115 favorable and the variable overhead efficiency variance is $325 favorable. Difference between standard and actual variable overhead cost is the total of variable overhead rate variance and variable overhead efficiency variance. Hence, the difference between standard and actual variable overhead cost is $440.
