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shutvik [7]
3 years ago
15

Backflush costing is a costing method that: Charges current production costs directly to finished goods inventory. Charges curre

nt production cost directly to work-in-process inventory. Charges current production costs using actual costs incurred.
Business
1 answer:
pychu [463]3 years ago
7 0

Answer:

Charges current production cost directly to work-in-process inventory

Explanation:

The blackflush costing is the costing method in which the present cost of production would be charged to the work in process inventory in a direct way

Therefore as per the given situation the second option is correct

ANd, the rest of the options are wrong as it does not meet the criteria

So the second option would be taken into consideration

You might be interested in
If revenues are greater than total variable costs of production but less than total costs, a firm A) earns a profit. B) suffers
vesna_86 [32]

Answer:

C) breaks even.

Explanation:

Cost-volume-profit analysis is also known as the break even analysis, it is an important tool in predicting the volume of activity, the costs to be incurred, the sales to be made, and the profit to be earned is. It is used to determine how changes in differing levels of activities such as costs and volume affect a company's operating income and net income.

Hence, if revenues are greater than total variable costs of production but less than total costs, a firm breaks even because the amount of money being generated is greater than the cost of running the business.

8 0
3 years ago
Read 2 more answers
A(n)
Alex787 [66]

Answer:

Flexible manufacturing systems (FMS)

Explanation:

FMS stands for the Flexible manufacturing systems, which is described as the method of production, which is designed in order to adapt the changes in the kind and the quantity of the product which is being manufactured.

The computerized systems and the machines could be configured to manufacture the variety of the parts and handle the production changing levels.

Therefore, the FMS is the one which is a single production system that combines the CIM (Computer Integrated Manufacturing) and the electronic machines.

3 0
3 years ago
Identify the principle of internal control to each of the following cases. 1. Cash is locked in a safe overnight. select princip
ivann1987 [24]

Answer:

1. Physical control

2. Segregation of duties

3. Pre-numbered documents

4. Segregation of duties

5. Establishment of responsibility

Explanation:

1. As this shows that someone locked cash in safe, so this will be physical control.

2. As this shows the division of duties among employees, so this will be segregation of duties.

3. As this shows documents are pre numbered so it comes under pre-numbered documents.

4. As this shows the division of duties for bookkeeper, so it comes under segregation of duties.

5. This shows the responsibility of any work on a person, so this will be establishment of responsibility.

4 0
3 years ago
Suppose that for each one-percentage-point increase in the interest rate, the level of investment spending declines by $1 billio
elixir [45]

Answer:

We expect investment spending to increase by $ 1 billion

Explanation:

If investment decreases by $ 1 billion if a 1 % change is made then that is sensitivity of investment to change in interest rate. Thus if there is a 1 % reduction in interest rate we expect to see a $ 1 billion increase in spending if this holds true.

5 0
3 years ago
You are given the following long-run annual rates of return for alternative investment instruments: U.S. Government T-bills 3.10
Dvinal [7]

Answer:

The real rate of return is 0.10%

Explanation:

For computing the real rate of return, we need to apply the formula which is shown below:

( 1 + nominal rate) = ( 1 + real rate) × (1 + inflation rate)

So,

The real rate = {(1 + nominal rate) ÷  (1 + inflation rate)} - 1

                     = ((1 + 3.10%) ÷  (1 + 2%)} - 1

                     = (1.031 ÷ 1.02) - 1

                     = 1.0107 - 1

                     = 0.10

The Government T-bills is only the nominal rate so we considered this only

5 0
3 years ago
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