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Elena-2011 [213]
2 years ago
5

One of the great dangers in allocating common fixed Blank 1 of 1 costs is that such allocations can make a product line look les

s profitable than it really is.
Business
1 answer:
lara31 [8.8K]2 years ago
4 0

Answer:

One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.

Explanation:

Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable.  This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines.  Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.

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Answer:

C) The goods are nonconforming because of the perfect tender rule.

Explanation:

Under UCC rules, the perfect tender rule applies to contracts where goods are sold, and it states that the seller must comply with the specifications that the buyer required. The perfect tender rule is used for products whose compliance with certain norms is important and vital, e.g. pharmaceutical drugs.

On the other hand, the substantial performance rule may apply to circumstances where the specifications are not that important, and a product close enough is considered sufficient. E.g. a contract for the sale of t-shirts that require a specific type of red might be satisfied by providing red t-shirts even if it wasn't the exact type of red.

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3 years ago
Department a had sales of $100,000.00, Department B had sales of $500,000.00, and total...
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It would be 10,333.33
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3 years ago
Hardin Company received $120,000 in cash and a used computer with a fair value of $360,000 from Page Corporation for Hardin Comp
san4es73 [151]

Answer:

$30,000 and $360,000

Explanation:

The computation of the gain on the exchange is shown below:

= Cash received + fair value of the computer  -  undepreciated cost of existing computer

= $120,000 + $360,000 - $450,000

= $30,000

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For computing the gain we simply added the fair value and deduct the undepreciated cost of an existing computer in the cash received amount so that the accurate amount can come.  

All other information which is given is not relevant. Hence, ignored it

3 0
3 years ago
The following data relate to direct labor costs for August: actual costs for 5,500 hours at $24.00 per hour and standard costs f
Marianna [84]

Answer: c. $1,650 unfavorable

Explanation:

The direct labor rate variance shows the difference between the cost of direct labor that the company thought it would incur vs what it actually incurs for the period.

Formula is:

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= Actual hours * (Actual cost - Standard cost)

= 5,500 * (24 - 23.70)

= $1,650 unfavorable

Unfavorable because the actual cost incurred was more than the cost anticipated.

7 0
2 years ago
Which savings plan typically offers the highest rate of interest but the least flexibility?
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The answer to this question is A
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3 years ago
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