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3 years ago

If a company uses a cost-plus approach to pricing, it will find:__________

1 answer:

4 0

Answer: b) there are several different definitions of cost and the higher the cost, the lower the markup percentage.

Explanation:

Cost-plus pricing means that the company ascribes a price to a product based on the cost to make it. They will add a markup on this cost which would be a percentage of the cost.

They will find that there are several definitions of cost which means that some items will be charged as cost to the product and others will not be such as advertising cost.

Also, the higher the cost, the lower the markup percentage for the simple reason that the percentage is based on the cost so it increasing means any percentage added onto it represents a smaller amount of itself.

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Based on predicted production of 17,000 units, a company anticipates $255,000 of fixed costs and $216,750 of variable costs. The

Arturiano [62]

Answer:

fixed costs = $255,000

variable costs = (15,000 / 17,000) x $216,750 = $191,250

Explanation:

A flexible budget is prepared in order to compare how budgeted revenues and costs actually worked out. In other words, if actual revenues and costs were similar to the budget previously prepared. A flexible budget adjusts actual results and helps management control how efficient the company was in following their budget. That is why a flexible budget is done after the budgeted period is over.

Fixed costs should not change (that is why they are fixed), but variable costs should change if the actual output was different than the budgeted output.

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3 years ago

Clemente Co. owned all of the voting common stock of Snider Co. On January 2, 2012, Clemente sold equipment to Snider for $125,0

bonufazy [111]

Answer:

$60,000

Explanation:

Sales Price $125,000

Less BV $140, 000

Loss on Sale $15,000

Equipment transferred at BV (Cost $140,000

Less Accumulated Depreciation. $40,000 $100,000 Depreciation.

For 2012

($100,000/5) $40,000 = $60,000

Therefore the Book Value at 12/31/2012 is $60,000

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3 years ago

Imprudential, Inc., has an unfunded pension liability of $750 million that must be paid in 17 years. To assess the value of the

Lana71 [14]

Answer:

$202,701,713.58

Explanation:

Present value of this liability = Value of liability / ((1+r)^t)

Present value of this liability = $750 million / ((1+0.08)^17)

Present value of this liability = $750 million / (1.08)^17

Present value of this liability = $750 million / 3.7000180548

Present value of this liability = $202,701,713.5840815

Present value of this liability = $202,701,713.58

6 0

3 years ago

Classifying costs by behavior with changes in volume of activity involves: Multiple Choice Identifying fixed cost and variable c

Vadim26 [7]

Answer:

Identifying fixed cost and variable cost.

Explanation:

The behavior cost is those costs that will completely change when there are minute changes in the activity and includes the variable and the fixed costs and the semi-variable costs.

As an example of the fixed cost is the insurance. While the variable cost is flour for the bakery that produces artisan bread. And that of the semi mixed cost is the cost of the bakery cost and the natural gas.

7 0

3 years ago

To pay for your education, you've taken out $29,000 in student loans. If you make monthly payments over 10 years at 7 percent

Scrat [10]

Answer:

$169.07

Explanation:

Data provided in the question:

Loan amount = $29,000

Time = 10 years

Interest rate = 7% compounded monthly

Therefore,

Interest rate per period, r = 7% ÷ 12 = 0.583% = 0.00583

number of periods, n = 10 × 12 = 120 months

Now,

Loan amount = Monthly payments × [ { 1 - (1 + r )⁻ⁿ } ÷ r]

on substituting the respective values, we get

$29,000 = Monthly payments × [ { 1 - (1 + 0.00583 )⁻¹²⁰ } ÷ 0.00583]

$29,000 = Monthly payments × 171.53

Monthly payments = $169.07

7 0

3 years ago