Answer: ABC costing systems have separate indirect cost allocation rates for each activity
Explanation: this costing method is based on the costs that each activity consume in a company. It can be used in either manufacturing or services company. The way of distribution the indirect costs is quite accurate.
Sorry I don’t know but thank for the point
Answer:
it is not allocatively efficient
Explanation:
Monopoly is a market condition where one seller has all the market share. This leads to an inefficient market structure, an increase in the prices of goods and services and abnormal profits. A problem with adopting a fair return polity for a natural monopoly is that it is not allocatively efficient. In a monopoly, goods and services are not produced to help the economy or people.
Answer:
A. Year 1 8.3%
Year 2 9.2%
B. Yes
Explanation:
(1) Calculation for its cash flow on total assets ratio for both years
Using this formula
Cash flow on total assets ratio =Net operating cash flow/Average total assets
Let plug in the formula
Year 1 Cash flow on total assets ratio=$102,920/$1,240,000
Year 1 Cash flow on total assets ratio=8.3%
Year 2 Cash flow on total assets ratio= 138,920/1,510,000
Year 2 Cash flow on total assets ratio= 9.2%
(2) Based on the above calculation YES it's cash flow on total assets improve in Year 2 versus Year 1
