Questions:
In its first year of business, Lakota, Inc. produced 600 units and sold 400 units. If Lakota uses variable costing, ________.
A) its operating income for the period will be lower than under absorption costing
B) its value of ending Finished Goods Inventory reported in the balance sheet will be higher than under absorption costing
C.) its operating income will be the same as under absorption costing
D) its operating income for the period will be higher than under absorption costing
Answer:
The answer D) is its operating income for the period will be <em>Higher</em> than under absorption costing
Explanation:
<em>Absorption costing</em> speaks to all costs, including fixed costs, related to production,
while <em>Variable costing</em> speaks only to the variable costs directly incurred in production.
It is clear from the above that in computation of the operating income will be lower in absorption costing since it considers only the variable costs incurred during products.
Cheers!
Answer:
$12,600
Explanation:
If Olivia Company uses the units of production depreciation method, we must calculate the depreciation cost per mile:
depreciation cost per mile = (purchase cost - salvage value) / total miles driven
depreciation cost per mile = ($50,000 - $5,000) / 250,000 miles
depreciation cost per mile = $45,000 / 250,000 = $0.18 per miles
Now we multiply by the total miles driven the first year times the depreciation cost per mile = 70,000 units x $0.18 per unit = $12,600
Answer:
-Auditor
Explanation:
The auditor is responsible for conducting an independent examination of the financial statements and records of the company. he or she checks whether the company follows the accounting principles, norms, etc as prescribed and according to that he or she give the qualified or unqualified report
Therefore as per the given situation, the option a is correct
Answer:
Advantages of a corporation include limited liability for its shareholders, a perpetual existence and ease of transferring ownership interests
Explanation:
https://www.justia.com/business-formation/docs/corporation-advantages-disadvantages/