The extra expense incurred by a business to stay in operation following a fire is an example of a(n)

Business

1 answer:

polet [3.4K]3 years ago

3 0

Answer:

indirect loss

Explanation:

Indirect loss is the loss, which occurs due to some unavoidable exceptional circumstances. These situations are not generally expected and usually do not comprise the day to day activity.

In the given case also, a fire occurs which destroy the operations, now in order to re-function the operations of the business the company needs to expense on some activities, as the premises require transformation.

Further with these expenses as re installation, repairs and maintenance the company will start operating again, but since they come from an unexpected situation, it was an expense on indirect loss.

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Thornton Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes

maw [93]

Answer:

Chicken drumsticks:

pounds 6,600 - 7,230.22 = -630,22‬

market value: 6,600 - 5,478 = 1,122

Breast:

pounds 13,000 - 9037,88 = 3,962.12

market value: 13,000 - 10.790 = 2,210.00

Changing the allocation method detemriantes whether the drumstick are profitable or not thus, it should be considered which method is better suited.

Explanation:

Joint cost:

9,400 mateirals + 6,868 processing Total =

pounds to allocate cost:

$\left[\begin{array}{cccc}Product&Sales&Weight&Cost\\Drumstick&4000&0.44&7230.22\\Breast&5000&0.56&9037.8\\\\Total&9000&1&16268\\\end{array}\right]$

using market value:

$\left[\begin{array}{cccc}Product&Sales&Weight&Cost\\Drumstick&6600&0.3367&5478\\Breast&13000&0.6633&10790\\\\Total&19600&1&16268\\\end{array}\right]$