1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Olin [163]
2 years ago
12

Explain the differences in operating incomes obtained in requirements 1 and 2. The difference in operating income under absorpti

on costing and variable costing is 308,000 . The 2020 operating income under absorption costing is greater than the operating income under variable costing because
Business
1 answer:
erik [133]2 years ago
6 0

Answer:

Differences in Operating Incomes Under Absorption Costing and Variable Costing:

The 2020 operating income under absorption costing is greater than the operating income under variable costing because

the ending inventory has carried over some fixed manufacturing costs, making the cost of goods sold less than under variable costing.

Explanation:

The differences in the operating incomes obtained under variable costing and absorption costing are due to the fixed manufacturing costs that are included in the ending inventory ​and carried forward to the next accounting period while the ending inventory under variable costing does not include any fixed manufacturing costs.  Absorption costing is based on full costing system but, variable costing  does not include the full costs.

You might be interested in
On January 1, 2014, the merchandise inventory of Glaus, Inc. was $1,200,000. During 2014 Glaus purchased $2,400,000 of merchandi
Xelga [282]

Answer: Option (C) is correct.

Explanation:

Given that,

Merchandise inventory(beginning inventory) = $1,200,000

Merchandise purchased = $2,400,000

Sales = $3,000,000

Gross profit rate on sales = 25%

Ending inventory of Glaus:

= Beginning inventory + Purchases - cost of goods sold

= $1,200,000 + $2,400,000 - [sales × (100-25)%]

= $1,200,000 + $2,400,000 - $3,000,000 × 0.75

= $1,200,000 + $2,400,000 - $2,250,000

= $1,350,000

5 0
3 years ago
Because a decrease in real autonomous spending results in a ________ in the price level, the ultimate effect on real gdp is ____
KIM [24]

Because a decrease in real autonomous spending results in a <u>fall</u> in the price level, the ultimate effect on real GDP is<u> smaller</u> that predicted by the multiplier.

Another significant discovery is made by Keynesian economics. You've learnt that Keynesians think fluctuations in total spending are what ultimately determine the level of economic activity in the short run (or aggregate demand).

Assume that full employment prevails in an economy because the macro equilibrium occurs at the potential GDP.

Keynes noted that even while the economy starts at potential GDP, it is improbable that it will stay there because aggregate demand has a propensity to fluctuate.

In 2007, the collapse of the housing market caused a decline in U.S. investment spending. The Great Recession subsequently hit the American economy as a result.

To learn more about Keynesian here

brainly.com/question/17247821

#SPJ4

7 0
1 year ago
Billy’s Exterminators, Inc., has sales of $592,000, costs of $284,000, depreciation expense of $36,000, interest expense of $28,
defon

Answer:

EPS = $1.9825

Explanation:

EPS (earnings per share) = Net Income / shares of common stock outstanding

Income before taxes = $592,000 - $284,000 - $36,000 - $28,000 = $244,000

Tax = $244,000 x 35% = $85,400

Net Income = $244,000 - $85,400 = $158,600

EPS = $158,600 / 80,000 = $1.9825

Hope this helps!

6 0
2 years ago
On April 2, Kelvin sold $40,000 of inventory items on credit with the terms 1/10, net 30. Payment on $24,000 sales was received
motikmotik

Answer:

Explanation:

The journal entry is shown below:

1. Accounts receivable A/c Dr $160

        To Sales discounts forfeited $160

(Being sales discount  is recorded)

The computation of the sales discount is shown below:

= (Sales value - payment made) × discount rate

= ($40,000 - $24,000) × 1%

= $160

2. Cash A/c Dr $16,000

       To Accounts receivable A/c $16,000

(Being cash is received)

4 0
3 years ago
LA Diversified Inc. recently paid its annual dividend of $3. Dividends have consistently grown at a rate of 3.8%. The stock has
RSB [31]

Answer:

$51.22

Explanation:

For computing the intrinsic value, first we have to determine the current year dividend and expected rate of return which is shown below:

The computation of the next year dividend is shown below:

= $3 + $3 × 3.8%

= $3 + 0.114

= $3.114

And, the expected rate of return would be

= Risk-free rate of return + Beta × (Market rate of return - Risk-free rate of return)

= 2.4% + 0.88 × (10.9% - 2.4%)

= 2.4% + 0.88 × 8.5%

= 2.4% + 7.48%

= 9.88%

Now the intrinsic value would be

= Next year dividend ÷ (Required rate of return - growth rate)

= $3.114 ÷ (9.88% - 3.8%)

= $3.114 ÷ 6.08%

= $51.22

3 0
3 years ago
Other questions:
  • On January 1, 2021, McGee Co. had the following balances: Projected benefit obligation $7,800,000 Fair value of plan assets 7,80
    7·1 answer
  • Which of the following is a characteristic of a good roasting pan? A. Low sides B. High sides C. A tight-fitting lid D. Allows j
    13·1 answer
  • According to the text, the most sensible method for budgeting for promotion expenses is to: A. allocate some fixed percentage of
    8·1 answer
  • On January 1, 2019, Jannison Inc. acquired 90% of Techron Co. by paying $477,000 cash. There is no active trading market for Tec
    9·1 answer
  • Kinney Company purchased a truck for $66,000. The company expected the truck to last four years or 100,000 miles, with an estima
    9·1 answer
  • What is considered one cause of inflation?
    6·2 answers
  • Find a company that has dramatically turned around its fortunes and improved its performance.
    8·1 answer
  • compass Bank is offering an APR of 0.8 %compounded daily on its savings accounts. if you deposit $2,500 today, how much will you
    8·1 answer
  • Work with delivery teams that are implementing the solution to ensure the technology features are appropriate. Ensure alignment
    6·1 answer
  • All of the following features in the Macabacus Excel add-in helps users identify inconsistent formulaic structure or potential e
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!