Answer:
Correct answer is TRUE
Explanation:
Non-cash assets are expected to produce cash over time but the amount of cash they eventually produce could be higher or lower than the values at which the assets are carried on the books. Some factors that affects the value of non-cash assets are the general economic forces such as inflation or deflation, amortization or impairement itself of the assets. It maybe realized at favorable side (gain) or unfavorable (loss) side.
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True, it may be searched for keywords
A <u>practical</u> standard is the quantity of material required if the process is 100fficient without any loss or waste.
Sensible requirements are the requirements that are set for everyday working conditions. They account for reasonable and unavoidable wastages which are part and parcel of the normal manufacturing manner. Practical standards remember the effect that factors along with machine preservation and maintenance time, everyday employee breaks, etc.
Perfect requirements aren't practical standards, apart from in the very quick run, and are consequently of little use for control wherein their use will be very demotivating for employees. Achievable standards constitute what will be done with a reasonable degree of effort below ordinary working situations.
Ideal preferred costs, those preferred expenses constitute the best overall performance. They assume 100% efficiency, that there are no losses or idle time. They constitute the minimal charges that are feasible below the maximum efficient running situations.
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Answer:
difference between the offered price and the variable cost per unit
Explanation:
The contribution margin per unit of a product is the difference between the selling price per unit and variable cost per unit. The contribution margin per unit shows the amount available from each unit sold that cater to fixed costs and profits. A higher amount of contribution margin is desirable as it assures that each unit sold is contributing to profitability.
When the variable costs are more than the selling price, it means a business is not meeting any of its costs. The firm is running at a loss and is likely to close down soon. Before accepting or rejecting the special offer, the business should compare the proposed price and variable costs. If the contribution margin is positive, then the order should be considered.
