Answer:
Option b is correct
Explanation:
The requirement of this service is to be independently derived because the procedures vary according to needs of the parties involved in the agreement.
Answer:
A higher operating income will result under absorption costing
Explanation:
If manufacturing production exceeds units sold there will be an increase in inventory and increases in inventory cause income to be higher under absorption costing than under variable costing.
Under variable costing, as its name suggests, only variable production costs are assigned to inventory and cost of goods sold.
Under absorption costing, normal manufacturing costs are considered product costs and included in inventory.
<em>Recognize that a reduction in inventory during a period will cause the opposite effect. </em>
<em>Specifically, a portion of the contents of the beginning inventory would be transferred to expense commensurate with the decrease in inventory. </em>
<em>Since the inventory contains less under variable costing, expect expenses to be lower and income to be higher.</em>
Answer:
a. The process is capable of meeting design specifications because the index is greater than 1
Explanation:
Missing word <em>"a. the index is greater than 1.0, b. the process is not capable of meeting design specifications because the index is less than 1.0, c. the process is capable of meeting design specifications because the index is twice the process capability ratio, d. none of the above"</em>
Process capability ratio (Cp) = (USL - LSL) / 6σ
- USL = 5+0.05= 5.05
- LSL = 5 - 0.05 = 4.95
- Standard deviation σ = 0.01
Process capability ratio (Cp) = 5.05 - 4.95 / 6*0.01
Process capability ratio (Cp) = 0.1 / 0.06
Process capability ratio (Cp) = 1.666666666666667
Process capability ratio (Cp) = 1.67
Process capability ratio Cp > 1. So, the Process is capable of meeting design specification.
Answer:
$79,000
Explanation:
Given that,
Implicit cost and explicit costs are as follows:
Earning at Shoe Warehouse = $40,000 a year
Jake has rented a storefront = $40,000 per year
Spend = $11,000 on inventory
Total revenue = $170,000 per year
Therefore,
Economic profit = Total revenue - (Explicit cost + implicit costs)
= $170,000 - ($11,000 + $40,000 + $40,000)
= $170,000 - $91,000
= $79,000
