The cost of advertising is part of the firm's variable cost and if advertising enables the firm to sell a greater output, its average total cost does not change.
Variable costs are dependent on the production output and sales. The variable cost of production is a constant amount per unit produced.
As the volume of production and output increases, variable costs will also increase. Alternatively, when fewer products are produced, the variable costs associated with production will consequently decrease.
Different examples of variable costs are sales commissions, cost of raw material, direct labor costs, used in production, and utility costs.
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Answer:
Instructions are listed below
Explanation:
Giving the following information:
At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $242,400 and 7,400 estimated direct labor-hours.
Actual manufacturing overhead for the year amounted to $243,800 and actual direct labor-hours were 5,500.
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead/ total amount of allocation base
Predetermined manufacturing overhead rate= 242000/7400= $32.70
Allocated overhead= overhead rate*actual hours= 32.7*5500= $179,850
Over/under allocation= actual overhead - allocated overhead= 243800 - 179850= 63950 underallocated
Answer:
I think ,it`s D.
Explanation:
Everyone has his own view on something ,in particular business .Why should you change your idea ? Who knows maybe you are the next Einstein who can find a diamond in a desert ?
The complete question is:
Niles, an accountant, certifies several audit reports on Optimal Operational Processes, Inc., Nile's client, knowing that the company intends to use the reports to borrow money from Prime Business Lending Company to buy new equipment. Niles believes that the reports are true and does not intend to deceive Prime Business, but does not check the reports before certifying them. Can Niles be held liable to Prime Business?
Answer:
Yes can be held liable
Explanation:
An accountant that certifies audits of a company is expected.to do his due diligence. In this scenario Niles believed that the reports are true without checking them.
This is an act of negligence on Nile's part and he can be held liable for damages resulting from the oversight.
The certified audit report is not only being used by Prime business but other third parties like investors and other stakeholders. Any of these can hold Mike's liable for any misleading information in the audit reports
