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2 years ago

"when the number of units produced exceeds the number of units sold, net income under absorption costing will be:"

Business

1 answer:

r-ruslan [8.4K]2 years ago

5 0

Answer:

The answer is that the net income under absorption costing would be higher than the net income under variable costing.

Explanation:

Absorption costing and variable costing are terms used in accounting contexts. Absorption costing, also known as full costing, incurs overhead costs when the product is sold; not before it. Variable costing, also referred to as direct costing, would include overhead costs during the period the costs occurred. In this condition, net income would be higher using absorption since overhead costs would not be included until the product is sold.

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Frankie's Chocolate Co. reports the following information from its sales budget: Expected Sales: July $ 90,000 August 110,000 Se

Cerrena [4.2K]

Answer:

$112,500

Explanation:

July August September October

Credit Sales(90000*75%) 67,500

(110,000*75%) 82,500

(120,000*75%) 90,000

Cash Sales (120,000*25% 30,000

<em>Total Cash expected to be collected in September will be;</em>

Credit Sales of August $82,500

Cash Sales of September $30,000

Total cash expected to be collected in September =$112,500

4 0

3 years ago

Read 2 more answers

XYZ Company makes 400 widgets. The variable costs are $35.60 per unit and fixed costs are $30.00 per unit; however, $21.40 in fi

Anuta_ua [19.1K]

Answer:

increase in income of $80

Explanation:

Prepare an Analysis of Costs and Savings if the Company buys from Outside Supplier.

Note : The fixed costs per unit at are unavoidable are irrelevant and disregarded in this decision.

<u>Analysis of Costs and Savings</u>

Purchase Price (400 widgets × $44.00) = ($17,600)

Savings :

Variable Costs ($35.60 × 400 widgets) = $14,240

Fixed Cost ( $8.60 × 400 widgets) = $3,440

Net Income effect = $80

Conclusion :

The effect on net income if the company instead buys the widgets is an increase in income of $80

3 0

3 years ago

In the context of human resource management challenges, which of the following statements is true of women workers?A) Many profe

Nataly_w [17]

Answer: A) Many professional women step out of the workforce early to start their own companies.

Explanation:

There are several human resource management challenges such as compliance with organization rules and laws, adaptation to innovation, recruitment challenges etc.

In the context of human resource management challenges, the most likely true option is that many professional women step out of the workforce early to start their own companies. Unlike their male counterparts who can stay for a very long time, the reverse is usually the case with women.

5 0

2 years ago

Some recent financial statements for Smolira Golf Corp. follow:

nalin [4]

Answer:

1. The company's profit margin is 13.4% percent.

profit margin = net income / net sales = $45,064 / $336,329 = 13.4%

2. The total asset turnover is 0.82 times.

asset turnover ratio = net sales / average assets = $336,329 / [($387,891 + $432,000)/2] = $336,329 / $409,945.50 = 0.82

3. The equity multiplier is 1.7 times.

equity multiplier = average total assets / average total equity = $409,945.50 / [($205,936 + $275,000)/2] = $409,945.50 / $240,468 = 1.70

4. Using the Du Pont Identity, the company's ROE is 18.68% percent.

ROE = profit margin x asset turnover x equity multiplier (or financial leverage) = 0.134 x 0.82 x 1.7 = 0.1868 = 18.68%

4 0

2 years ago

Select all that apply.

Oxana [17]

Probably “would you enjoy reading a fashion magazine”

5 0

2 years ago

Read 2 more answers