Contribution approach Income statement- In this Statement Company's Variable costs deducted from Sales to arrive at contribution margin. After that Fixed expenses are deducted from contribution margin for arriving at profit for the period.
Basically , this statement separated fixed and variable expenses of a period to arrive at profit of the company.
It separates all the costs between fixed and variable whether it is manufacturing costs or Selling or administrative costs.
Traditional Approach Income statement- It is non other than profit and loss account of an entity. it reflects whether a company generating profit or making loss during a period.
It separates the Manufacturing costs from Selling and administrative costs. Manufacturing costs deducted from sales to arrive at gross profit. after that selling and administrative costs deducted from gross profit to arrive at net profit.
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Answer:
<u>Short report on the evaluation of Absorption Costing and Relevant Costing</u>
FROM : Accounting Student
TO : Accountant
DATE : Tuesday 19 January 2021
RE : Evaluation of Absorption Costing and Relevant Costing
1. Product Cost :
Absorption Costing = Variable manufacturing costs + Fixed manufacturing costs
Relevant Costing = Variable manufacturing costs only
2. Period Costs :
Absorption Costing = All Non- Manufacturing Costs
Relevant Costing = All Non- Manufacturing Costs + Fixed Manufacturing Costs
3. Gross Profit / Contribution
Absorption Costing = Calculates Gross Profit (Sales - Production Costs)
Relevant Costing = All Non- Manufacturing Costs + Fixed Manufacturing Costs
Signed
Accounting Student
Date 1/19/2021
Explanation:
Absorption costing is also known as full costing. All manufacturing costs are included in the Product Cost. This is most suitable for external reporting and acceptable for IFRS and GAAP.
Relevant costing is also known as Direct or Variable costing. Only Variable manufacturing costs are included in Product Costs. This costing method is for internal purposes and is used by Managers for decision making.
Answer:
False.
Explanation:
A lawsuit can be defined as a dispute or claim brought by an individual or group of people (party) against another to a court of competent jurisdiction for the singular purpose of adjudication.
A class action is filed by a group of people in the interest of a larger population.
If a class-action suit deals with equal pay or gender discrimination, it can be filed against an employer.
Answer:
NPV is -$12,960
Explanation:
Net present value is the Net value all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
In this question all the expenses are cash outflows and The cost saving is the cash inflow from the new machine investment.
Working for the NPV is attached with the answer please find it.
