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Lubov Fominskaja [6]
2 years ago
11

Activity-based costing systems: Eliminate multiple-stage cost allocation. Accumulate overhead costs by departments. Have separat

e overhead rates for each activity. Can be used in manufacturing firms only. Are less complex and therefore less costly than volume-based systems.
Business
1 answer:
kherson [118]2 years ago
3 0

Answer:

Eliminate multiple-stage cost allocation. Accumulate overhead costs by departments and Have separate overhead rates for each activity.

Explanation:

Activity-based costing systems are used to allocate indirect costs to Products. This is because indirect costs can not be traced directly to the product being produced or cost center. So, Activity-based costing systems can be used in any industry. The main point in Activity-based costing systems is how to allocate general cost or general expenses to each cost center or product.

Thus, identification of activity costs centers and activity costs drivers to allocate the overheads is costly and takes a lot of time. However these systems eliminate multiple-stage cost allocation. Accumulate overhead costs by departments and have separate overhead rates for each activity.

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What are assets?
mixer [17]

Answer:

items in your belongings

6 0
2 years ago
Johnston Company wants to double production of Product X from 1,000 units to 2,000 units. The variable manufacturing cost per un
ratelena [41]

Answer: C - $30,000

Explanation: Johnston Company wants to double production of Product X from 1,000 units to 2,000 units.

The variable manufacturing cost per unit is $10. The variable non manufacturing cost per unit is $20.

The selling price per unit is $50

To increase production by 1000 units

Total cost is $10 + $20 = $30

Total incremental cost = 1,000 * $30= $30,000

7 0
3 years ago
Two mutually exclusive projects have 3-year lives and a required rate of return of 10.5 percent. Project A costs $75,000 and has
Norma-Jean [14]

Answer:

Both projects should be rejected

Explanation:

The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.

IRR can be calculated using a financial calculator:

For project A,

Cash flow in year zero = $75,000

Cash flow in year one = $18,500

Cash flow in year two = $42,900

Cash flow in year three = $28,600

IRR = 9.12%

For project B,

Cash flow in year zero = $-72,000

Cash flow in year one = $22,000

Cash flow in year two = $38,000

Cash flow in year three = $26,500

IRR = 9.48%

The decision rule on if to invest or not is if IRR > r

For both investments IRR is less than rate of return

9.12% < 10.50%

9.48% < 10.50%

To find the IRR using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button, and the compute button.

I hope my answer helps you

8 0
3 years ago
According to business analyst Scott Anthony, identifying opportunities requires understanding of:_________
Maurinko [17]

Answer:

the 5Cs of opportunity identication:

1. Circumstance

2. Context

3. Constraints

4. Compensating behaviors

5. Criteria

Explanation:

According to Scot Anthony, to identify opportunities it's important to understand the 5Cs of opportunity identication.

1. Circumstance: Know the specific problems which your customers care about and how they get solutions to it.

2. Context: Know what the customer did in the past and work around it to present something realistic.

3. Constraints: Get to understand customers' barriers and constraint.

4. Compensating behaviors: Understand the compensations that engage your customers.

5. Criteria: In order to know a good solution, it's important to understand the criteria that matter to your customers.

8 0
3 years ago
Delta Graphics Inc. specializes in publishing educational books. It recruits and trains college students to sell its products do
Ivahew [28]

Answer:

a) Direct retailing

Explanation:

The direct retailing is the process of direct selling the company products and services via door to door, office to office from company to customers rather purchasing online, store locations, etc

According to the given situation, Delta Graphics Inc. specializes in publishing educational books. And, in order to sell their products, the company recruits and trained college students so that it sells the company products door to door by using their convincing skills, product information, product comparison, etc

7 0
3 years ago
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