Answer:
c. allocates overhead to activity cost pools, and it then assigns the activity cost pools to products and services by means of cost drivers.
Explanation:
The activity based costing is the costing that helps to allocated the indirect cost or we can say the manufacturing overhead cost with the help of the many cost drivers or the many activity cost pools
Like if we allocate the setup cost so we have to allocated with the number of machine setups.
For the inspection cost, the number of inspections is required so that the allocation could be done
Answer:
He should reorder when he is left with 200 hammers.
Explanation:
Reorder point is the trigger which informs the businessmen to order the inventory when the stock is used.
Reorder point = Safety Stock + (Average daily usage of units * Average lead time in days )
Reorder Point = 0 + (100 hammers * 2 days)
Reorder Point = 200
In a world that is synchronized on a global scale, trade between nations is constant. Imports cannot be reduced by 20% in order to close the trade deficit.
<h3>Why it is not possible to reduce imports?</h3>
There are certain nations that will be impacted if the United States decides to cut imports by 20%.
As a result, imports from the United States will likewise be restricted in other nations.
In other words, the United States may experience a fall in exports while attempting to reduce imports. The overall impact on trade imbalances could be minimal.
The trade conflict between the United States and China is a good illustration. China responded to the United States taxes on its imports by imposing its own levies. As a result, both countries suffered.
As a result, there is no quick fix for decreasing trade deficits. A more delicate balance between consumption and production must be achieved over time.
The manufacturing industries must have favorable policies and incentives to encourage consumer demand for locally made items.
Check out the link below to learn more about trade deficit;
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Answer:
variable pricing
Explanation:
A variable pricing strategy refers to selling a same product or service at a different price depending on the sales location, date, or other factors. This type of strategy is used to try to maximize revenue by adjusting price to the different categories of our points of sale or our customers.
In case of sports teams, they will price their seats based on other factors like who is the opponent (current champion v. bad teams), day of the week (weekends v. weekdays) or the time of the season (middle of the season v. near playoffs), etc.
Answer:
Number of units that must be sold to earn the target profit is 3000 units.
The contribution margin ratio is 0.70
Explanation:
We will use the break even analysis modified for target profit to calculate the number of units needed to earn the desired
The break even point in units is calculated by dividing the fixed cost by the contribution margin per unit. To calculate the number of units required to earn the desired profit, we add the desired profit to fixed cost and divide it by the contribution margin per unit.
Contribution margin per unit = 250 - 75 = $175
Number of units required to earn target profit = (325000 + 200000) / 175
Number of units required to earn target profit = 3000 units
The contribution margin ratio is = 175 / 250 = 0.7 or 70%
Dollar Sales required to earn target profit = $4,812,500
