Answer:
a. Identify a cost driver associated with each activity.
Explanation:
While setting up the new activity based costing system he presently completed the identification of the activities and the cost of overhead is associated with each kind of activity
Now the next step in the activity based costing is to have a identification of the cost driver that associated with each kind of activity
Here cost driver means number of machine hours, number of machine setups, etc
Therefore the first option is correct
Answer:
Dollar profit loss = $3
Holding period return = negative 9%
Explanation:
In order to find the dollar profit or loss return we will add the dividend and selling price because that the dividend plus the selling price is the cash that Travis receives or the positive cash and we will subtract the buying price from it because it is the negative cash flow. So we will add all the positive cash flows and subtract negative cash flow from it in order to find the dollar profit loss or return.
Selling price = 27.65
Dividend = 0.85
Selling price + Dividend= 28.5
Selling price = 31.50
Dollar profit loss or return = 28.50-31.5=-3
Loss= $3
In order to find the holding period return we will divide add the dividend and selling price , subtract buying price from it and then divide it by buying price.
(27.65+0.85-31.5)/31.5= -0.09 = -9%
Holding period return = negative 9%
Answer:
d) increased competition can harm businesses in developing countries
Explanation:
Globalization has increased interconnection and interdependence among world economies. International trade has increased due to the relaxation of border restrictions. Due to globalization, many countries, including the developing ones, have liberalized their economies.
For a developing economy, international trade can cause unfair competition to their young industries. Countries with developed economies can produced goods and services in large quantities and with more efficiency. When such goods get to the developing countries, they will be of a higher quality and a lower price. Producers in developing countries will not be able to compete with such imports, which impedes their growth.
Answer:
The increase in operating profit is $1,829.00.
Explanation:
The rise or fall in the operating income:
= Purchase unit × ( offer price- direct material- direct labor- variable overhead)
The rise or fall in the operating income: = 1550× (2 - 0.26 - 0.4 - 0.16)
The rise or fall in the operating income: = $1829
Therefore the profit will increase by $1829
Here all the fixed cost is not considered because it is a sunk cost and variable and administrative expenses are also not considered because these costs are not going to be incurred for offer.
Answer:
30005
Explanation:
Total Revenue equals price multiple to the quantity produced.
Total Profit= Total Revenue -Total Cost= P*Q- (Variable costs +Fixed Costs)
If we considered TR=P*Q,
in the first period it will be: TR=P*Q=6000*5=30000
in the second period it will be= TR=P*Q= 6001*5=30005
