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3 years ago

Consider the following statements about absorption- and variable-costing income:_______.

Business

1 answer:

-Dominant- [34]3 years ago

8 0

Answer:

Absorption and Variable Costing Income:

The true statements are:

D) I and II.

Explanation:

If these two figures (production and sales volumes) are equal, the implication is that there are no beginning and ending inventories of goods. Therefore, the yearly income reported under the two costing systems will be the same.

The claim of statement II is that it is only in the long-run that the total income reported under the two systems will be close to each other. This holds true where there are beginning and ending inventories of goods as established earlier.

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What must a firm that pursues a cost-leadership strategy do in order to nurture and constantly upgrade core competencies in manu

gtnhenbr [62]

The firm must ensure upgrading the departments core competencies through making sure that employees have the innate ability or skills demanded.

Firms that adopt the Cost leadership strategy does so to earn higher returns and competitive advantages through of offering of products at lowest prices in the market.

The core competencies in manufacturing and logistics includes pro-activeness, ability to handle documents properly, strategic thinking, forward thinking, logical decision-making, networking abilities etc

However, the firm must ensure upgrading the departments core competencies through making sure that employees have the innate ability or skills demanded.

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3 years ago

The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let’s see whether

Airida [17]

Answer:

Note: See missing wordings in attached picture below

a. 2015

Gross profit percentage = [Total revenue - Cost of crude oil and products] / Total revenue

Gross profit percentage = [$225 - $119] / $225

Gross profit percentage = $106 / $225

Gross profit percentage = 0.47111111

Gross profit percentage = 47.11%

2014

Gross profit percentage = [Total revenue - Cost of crude oil and products] / Total revenue

Gross profit percentage = [$242 - $127] / $242

Gross profit percentage = $115 / $242

Gross profit percentage = 0.475206612

Gross profit percentage = 47.52%

Conclusion: Insignia Corporation are likely to earn less gross profit from each dollar of sales in 2016 because Gross profit percentage decreased from 2014 to 2015.

b. 2015

Net profit margin = Net income / Total revenue

Net profit margin = $26/$225

Net profit margin = 0.1155555

Net profit margin = 11.56%

2014

Net profit margin = Net income / Total revenue

Net profit margin = $37/$242

Net profit margin = 0.152893

Net profit margin = 15.29%

6 0

3 years ago

Christine Benninger as President of the Humane Society is facing many challenges. To be successful she will need to use her infl

ankoles [38]

I think the answer to this question is: Strategic leadership
Strategic leadership is the ability to influence other to do something that will be beneficial for our group
This kind of skill is really important to ensure company's long term success and operational stability between each of the group members

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3 years ago

Logistics Solutions provides order fulfillment services for dot merchants. The company maintains warehouses that stock items car

madreJ [45]

Part 1.1 - Variable overhead cost incurred to fill the order for the 120,000 items is $7,800.

Part 1.2 - Difference between standard and actual variable overhead cost is $440.

Part 3 - Difference between standard and actual variable overhead cost is $440.

Explanation:

It is given that the number of order is 120,000 items and calculated standard variable overhead cost per order for one item is $0.065. Variable overhead cost incurred to fill the order for the 120,000 items can be calculated by multiplying the number of order of the items with the calculated standard variable overhead cost per order for one item. Hence, the variable overhead cost incurred to fill the order for the 120,000 items is $7,800.

It is given that the actual variable overhead cost is $7,360 and calculated standard variable overhead cost is $7,800. Difference in standard and actual variable overhead cost can be calculated by deducting the actual variable overhead cost from the standard variable overhead cost. Hence, the difference between standard and actual variable overhead cost is $440.

Calculated variable overhead rate variance is $115 favorable and the variable overhead efficiency variance is $325 favorable. Difference between standard and actual variable overhead cost is the total of variable overhead rate variance and variable overhead efficiency variance. Hence, the difference between standard and actual variable overhead cost is $440.

7 0

3 years ago

Suppose that you lend $1,000 to a friend and he or she pays you back one year later. What is the opportunity cost of lending the

Vesna [10]

Answer:

The nominal interest rate that would have been earned on the money

Explanation:

Opportunity cost or implicit cost is the cost of the option forgone when one alternative is chosen over other alternatives.

If i lend a friend money, i would be forgoing earning interest on my money. This is my opportunity cost. Interest earned is nominal interest

Nominal Interest = Real interest rate + inflation rate

3 0

3 years ago