In a process cost system, the application of factory overhead usually is recorded as an increase in work in process inventory control.
<h3>
What is the process costing system?</h3>
- When a large number of similar products are manufactured, a process costing system accumulates costs.
- A process costing method is used by any large-scale firm who produces huge quantities of identical commodities.
- A petroleum refinery is a perfect example of a process costing environment since it is hard to trace the cost of a specific unit of oil as it passes through the refinery.
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The nominal income will increase with the increase in the real income.
<u>Explanation:</u>
Real income of the person is the buying or the purchasing capacity of the person. It is the nominal income adjusted for inflation. If there is an increase in the real income more than the increase in the level of the prices at a particular period of time, it means that the level of nominal income of the person will also increase.
Answer:
The options for this question are the following:
A. Quantity demanded will decrease, quantity supplied will increase, and a shortage will result.; B. Quantity demanded will increase, quantity supplied will decrease, and a surplus will result.; C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result; D. Quantity demanded will increase, quantity supplied will decrease, and a shortage will result.
The correct answer is C. Quantity demanded will decrease, quantity supplied will increase, and a surplus will result.
Explanation:
There is a strong correlation between pricing (at prices higher than the equilibrium price) and the creation of excess supply. Following the analysis of supply and demand, if we start from an initial equilibrium situation (where the quantity demanded and supplied are equal) and the authority decides to set a much higher price, the quantity demanded of the product will decrease and, on the other hand, the quantity supplied will increase, so producers will want to sell more than consumers want to buy. The previous problem will be solved if the authority decides to lower the price of the product, since this encourages consumers to buy more and bidders to produce less.
Answer:
incremental after tax cash flow for 2011: $1,145,000
Explanation:
Additional revenue $2,500,000
Cash operating expenses ($700,000)
Depreciation and amortization expenses ($300,000)
<u>Reduced inventories ($200,000)</u>
Pretax income $1,300,000
<u>Less taxes 35% ($455,000)</u>
Net income $845,000
<u>Add Depreciation and amort. expenses $300,000</u>
Free cash flow $1,145,000
Answer:
The correct answer is letter "C": Sales by Product report.
Explanation:
In the Marketing Information System (MIS), the Sales by Product Report stores the information of the product quantity, amount invoiced, journal amount, costs of the goods sold, taxes, and profits given a certain accounting period. Thanks to all that data provided, the organization is able to determine what products should continue being produced and which ones must be left behind.