<span>Conversion Cost
You can call this the cost of changing the goods into buyable items . These costs are the blend of direct work costs in addition to assembling overhead expenses.
You can consider conversion costs as the assembling or generation costs important to change over crude materials into items. Communicated another way, conversion costs are a maker's item or generation costs other than the expenses of crude materials.</span>
Answer:
Journal entries
Explanation:
The journal entries are as follows
On July 1
Prepaid insurance Dr $12,400
To Cash $12,400
(Being the payment is recorded)
On December 31
Insurance expense Dr $3,100
To Prepaid insurance $3,100
(Being the insurance expense is recorded)
It is computed below:
= $12,400 × 6 months ÷ 24 months
= $3,100
Answer:
Epic Electronics is considering a strategy to charge a very high introductory price for their automobile video theater. After identifying that their rival firms did not carry this new product, they chose this pricing strategy to achieve maximum profits. Epic Electronics has chosen a<u> skimming </u>strategy.
Explanation:
Price skimming is a pricing strategy in which a marketer fixes a relatively high initial price for a product or service at first, then lowers the price over time. It is a temporal version of price discrimination/yield management.
Answer: 6520 + 3x
Explanation:
Firstly, we need to calculate the variable cost per hour which will be:
= (Highest activity cost – Lowest activity cost)/(Highest activity hour – Lowest activity hour)
= (9460 - 7300)/(980 - 260)
= 2160 / 720
= 3
We'll also find the fixed cost which will be:
= Fixed cost = Highest activity cost – (Variable cost per hour x Highest activity hour)
= 9460 - ( 3 x 980)
= 9460 - 2940
= 6520
Therefore, the cost function will be:
= 6520 + 3x
Answer:
The main difference between accounting and economic Profit is that accounting profit refers to monetary revenue minus monetary costs which includes any type of cost in the organization in the form of rents, salaries, material costs etc. Economic profit refers to the monetary revenue minus total cost.
Explanation:
