Variable cost vary in direct proportion to business volume (quantity sold or quantity produced)
Fixed cost remain constant regardless of sales or manufacturing volume.
According to question if sales are increased by 1200 units.current year sale will be 11200 unit .
Suppose Wesson have a variable cost of $6 per unit and fixed cost of $1000.
Cost of 10000 units are :-
Variable cost is 60000(10000*6)
Fixed cost is 1000.
Cost of 11200 unit are :-
Variable cost is 67200(11200*6)
Fixed cost is 1000
So if sales are increased by 12%. Variable cost are increased by 12%(67200-60000). Fixed cost remain the same at 1000 regardless of sales increased
Therefore,
Variable cost increases, Fixed cost remains constant. Answer is choice (e)
An investor who goes short in a futures contract will pay any increase in value of the underlying asset and will receive any decrease in value in the underlying asset
<h3>Who is an investor?</h3>
An investor is an individual who has invested certain amount of money in a business, firm or organization.
There is an agreement on the amount invested and how profit will be shared in the business.
Therefore, an investor who goes short in a futures contract will pay any increase in value of the underlying asset and will receive any decrease in value in the underlying asset.
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Answer: 60%
Explanation:
Find the ending work in process.
Materials are complete at inception so the Equivalent units of Materials represent the total units.
Ending WIP will therefore be:
= Materials EUP - Units started and completed
= 5,000 - 3,500
= 1,500 units
Stage of completion is based on Conversion.
Conversion EUP = Total started and completed + (x% * Closing WIP)
4,400 = 3,500 + (x% * 1,500)
4,400 = 3,500 + 15x
15x = 4,400 - 3,500
15x = 900
x = 900/15
x = 60%
<em>Conversion is 60% complete so this is the stage of completion. </em>
A credit to cash, a debit to sales returns and allowances, a credit to inventory, and a debit to cost of goods sold are all recorded.
Perpetual inventory, commonly referred to as continuous inventory, is an inventory management system that uses software to automatically and constantly record each stock movement (such as purchases, returns, consumptions, and write-offs), keeping the system current at all times.
This contrasts with the need to manually update the system on a regular basis when utilizing spreadsheets or paper-and-pencil alternatives.
Barcodes, POS systems, radio frequency identification, and real-time reporting are used by perpetual inventory systems like MRP, ERP, or WMS software to track inventory movements and build a virtual trail of each transaction occurring in the physical inventory. This makes it possible to perform extremely accurate real-time inventory accounting, giving the business a current cost of goods sold at all times.
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