Answer:
$4,213
Explanation:
Product Group Units Cost/Unit Market/Unit Total Value
A 1 600 $1.00 $0.80 $480
B 1 250 $1.50 $1.55 $375
C 2 150 $5.00 $5.25 $750
D 2 100 $6.50 $6.40 $640
E 3 80 $25.00 $24.60 $1,968
total $4,213
when you are using the lower of cost or net realizable value to determine the value of your inventory, you should calculate the inventory's value using the lowest cost between purchase cost and market value.
Answer:
b. The demand curve does not reflect the value to society of the good.
Explanation:
An externality is a financial term alluding to an expense or advantage caused or got by an outsider. Nonetheless, the outsider has no power over the making of that cost or advantage.
An externality can either be positive or negative which can be caused by either production or consumption of a good or service. The cost or the benefit can affect an individual or a society as a whole. A typical example of a negative externality is pollution which can cause negative cost to a third party in terms of health expenses. An example of a positive externality on the other hand is when a well educated labor force increase their productivity.
The government and local authorities can control negative externality by imposing taxes and regulation of these products. The government can also overcome negative externality by imposing subsidies on the goods that improve positive externality.
The demand curve however does not reflect the value to society of the good. It only reflects the relationship between the price and the quantity of goods consumed.
Answer:
The correct answer is C. Loss occurs.
Explanation:
If the contribution margin is not sufficient to cover fixed expenses:
The contribution margin is calculated by deducting from sales the variable components. <u>Unless the selling price is lower than unitary variable costs, contribution margin will never be negative.</u>
When the contribution margin is lower than fixed costs, the company incurs on a loss.
Answer:
The correct answer is (a)
Explanation:
Material inventory planning technique is an effective technique to manage the inventory level. It helps to manage all the inventory requirements and helps to schedule the inventory accordingly. It reduces the uncertainly regarding the inventory level, needs and materials. It helps to have the entire inventory needed for the short time; as soon as the inventory reaches a specific level it helps to restock it.
Answer:
The common fixed expenses = $246,000
Explanation:
Common fixed expenses are those costs that do not change with change in production volume, are not limited to a single segment of a business. In this example for a company with two divisions: Remodeling and new home construction, the administrative assistants' and president's salaries are fixed, because their annual salaries remain the same irrespective of the number of clients gotten during the year, and it is common because these two sectors (administration and presidency) are not directly traceable to any of the two divisions of the company, they are generally involved.
Therefore, the common fixed expenses are the salaries of the administrative assistants and the president which are:
Common fixed cost = 52,000 + 38,000 + 156,000 = $246,000
