Answer:
<u>Short report on the evaluation of Absorption Costing and Relevant Costing</u>
FROM : Accounting Student
TO : Accountant
DATE : Tuesday 19 January 2021
RE : Evaluation of Absorption Costing and Relevant Costing
1. Product Cost :
Absorption Costing = Variable manufacturing costs + Fixed manufacturing costs
Relevant Costing = Variable manufacturing costs only
2. Period Costs :
Absorption Costing = All Non- Manufacturing Costs
Relevant Costing = All Non- Manufacturing Costs + Fixed Manufacturing Costs
3. Gross Profit / Contribution
Absorption Costing = Calculates Gross Profit (Sales - Production Costs)
Relevant Costing = All Non- Manufacturing Costs + Fixed Manufacturing Costs
Signed
Accounting Student
Date 1/19/2021
Explanation:
Absorption costing is also known as full costing. All manufacturing costs are included in the Product Cost. This is most suitable for external reporting and acceptable for IFRS and GAAP.
Relevant costing is also known as Direct or Variable costing. Only Variable manufacturing costs are included in Product Costs. This costing method is for internal purposes and is used by Managers for decision making.
Answer:
SIGNIFICANCE TEST
Explanation:
Significance tests give us a formal process for using sample data to evaluate the likelihood of some claim about a population value . The significance level for a given hypothesis test is a value for which a P-value less than or equal to is considered statistically significant. Typical values for are 0.1, 0.05, and 0.01. These values correspond to the probability of observing such an extreme value by chance
Answer:
It exemplify DURABILITY
Explanation:
The video states that people used to trade goods like wheat for other things they needed, but crops could rot, making money a more suitable medium of exchange. According to this concepts, the characteristic of money this exemplify is called DURABILITY
Answer with Explanation:
<u>Risk which can’t be mitigated</u>: The risks that the share price would fall due to sudden political environment instability or events that effects the economy will definitely affect the business operations as well. Thus are the risks that can not be mitigated at all. Another example would be Corona virus implications on the operation of the company which is again a risk that can't be mitigated.
<u>Risks, that aren’t worth the effort to reduce the exposure any further: </u>
The part of the sentence talks about the risk exposure which says that if the company doesn't resides in an area which is not prone to seismic activity and the chances of earthquake in a country is below 0.000001% which is almost negligible but still it is worthless to purchase the earthquake insurance. As this risk is almost negligible hence it is not worth the effort to reduce the exposure any further.
<u>Risks that wouldn't be addressed in short term due to other priorities: </u>
The risks that will not occur in the next 12 month, can be addressed after 6 months and thus allowing the company to prioritize the risks that must be resolved first. This means that if their is a risk that one of our several products that would be launched after 12 months from now will not be winning customer market can be addressed after 6 months because it is dependent on our future action. If we don't launch our product, our product is not rejected by the customer. Hence situations like this allows us to prioritize our risks.
If too high ppl won't buy. If no buyers, no profit, and it is basically a cause and effect :)
