Answer:
The correct answer is the definition of fixed and variable costs.
Explanation:
The cost of production of a company can be subdivided into the following elements: rents, wages and wages, depreciation of capital goods (machinery and equipment, etc.), the cost of raw materials, interest on operating capital , insurance, contributions and other miscellaneous expenses. Different types of costs can be grouped into two categories: fixed costs and variable costs.
Fixed costs
The fixed costs are those that the company necessarily has to incur when starting its operations. They are defined as costs because in the short and intermediate term they remain constant at different levels of production. As an example of these fixed costs, executive salaries, rents, interest, insurance premiums, depreciation of machinery and equipment and property taxes are identified.
Variable costs
Variable costs are those that vary with the volume of production. The total variable cost moves in the same direction of the production level. The cost of raw material and the cost of labor are the most important elements of variable cost.
The decision to increase the level of production means the use of more raw material and more workers, so the total variable cost tends to increase production. The variable costs are, then, those that vary as production varies.
Answer:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Explanation:
The question is missing the direct and indirect costs, however I will let you know how to calculate.
The costs will be given total for material, labor and overheads, along with this data a ratio in the form of a percentage will also be given for example material used in preparation of fresh bakery goods.
The amount of material will be multiplied by the percentage of material used in preparation of fresh bakery goods, the result amount will be the cost incurred for material used for the preparation of fresh bakery goods.
Follow this for all the cost heads provided.
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Answer:
$5,000= ending inventory
Explanation:
Giving the following information:
Gross margin is normally 40% of sales.
Sales= $25,000
beginning inventory= $2,500
purchases= $17,500
First, we need to determine the cost of goods sold:
COGS= 25,000*0.6= 15,000
Now, using the following formula, we can calculate the ending inventory:
COGS= beginning inventory + cost of goods purchased - ending inventory
15,000= 2,500 + 17,500 - ending inventory
5,000= ending inventory
Answer:
Explanation:
Suppose Ruston Company had the following cash flow results for 2019: Net Cash Flow from Operating Activities of $9,100,000 Net Cash Flow from Investing Activities of -$4,300,000 Net Cash Flow from Financing Activities of $3,400,000 Create a statement of cash flows with amounts in thousands. What is the Net Cash Flow?
