Answer:
The predetermined overhead rate for machine hours is calculated by dividing the estimated manufacturing overhead cost total by the estimated number of machine hours
Explanation:
if the annual budget is based on a production quantity of 10,000 units and the direct labor required for each unit is three hours, the total direct labor is 10,000 x 3 or 30,000 hours. The total overhead expenditure is then divided by the total labor hours to arrive at the overhead rate.
Answer:
True
Explanation:
Financial statement of an organisation consist of the Income statement, Balance sheet and the statement of cash flow.
The income statement shows the total revenue and expenditure of firm during a period (i.e, during a trading year). Income statement usually is prepared to show the gross profit and net profit of the business during a trading period.
On the other hand, The balance sheet of a firm shows the financial position of the firm as at a particular period of time. It show the owner's equity, the asset and the liabilities of the business as at a particular date.
However, the cash flow statement shows the inflow and outflow of cash in and out of the business. it shows the net change in cash resulting from the operation, investment and other financial activities of the firm during a period of time.
Hence, we can conclude that the main quality of a financial statement is that it must be timely (i.e should be available immediately at the end of the financial year for it to be useful because when delayed, it become useless.
1/4 - 2/3y = 3/4 - 1/3
-1/4 -1/4
(3)-2/3y = (3/4 - 1/3 - 1/4)3
-2y = 1/2
/-2 /-2
y = -1/4
Producer surplus is the difference between the amount a producer of a good receives and the minimum amount the producer is willing to accept for the good.
Cost to make 1 cake= $3
FIND SURPLUS PER CAKE
Surplus divided by 3 cakes
$19.50 ÷ 3= $6.50 surplus per cake
SALE PRICE OF CAKES
$3 cost + $6.50 surplus= $9.50
ANSWER: He must be selling his cakes for $9.50.
Hope this helps! :)
Answer:
D. Switching cost strategy
Explanation:
The software manufacturer has incorporated the use of switching cost strategy by making it difficult for customers to substitute their software product for another.
Switching costs: it is also known as switching barrier. This is a the cost incurred by the customer as a result of changing brands, product, services or suppliers.
The higher the cost of switching; the lesser a customer would be willing to switch between brands, the lower the switching cost; the higher the customer would be willing to switch between brands.
Switching cost includes:
• Psychological cost: This is the cost of a customer deciding whether the new product or services would be better than the old product
• Effort-based cost: This refers to the effort a customer will put in while switching brands such as the paperwork involved.
• Time cost: The amount of time used while a customer is switching product
Strategies used by firms to discourage its customers from switching
1. Charging a high cancellation fee for service cancellations.
2. Adopting a lengthy cancellation process for service cancellations.
3. Requiring significant paperwork for service cancellations.
