1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lubov Fominskaja [6]
3 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]3 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.

You might be interested in
Question:
Oduvanchick [21]

A purpose of government regulation in a mixed-market economy is to protect  A) Property rights

3 0
3 years ago
As winner of a breakfast cereal competition, you can choose one of the following prizes: a. $180,000 at the end of five years. b
Stolb23 [73]

Answer:

i. Discounted cashflow equations.

a.  $180,000 at the end of five years.

This is a lump sum present value/ discounted cashflow which can be calculated as;

Formula = 180,000 / ( 1 + r)^n

= 180,000/ ( 1 + 12%)^5

= $102,136.83

b. $11,400 a year forever

This is a perpetuity. The present value/ discounted cashflow of a perpetuity is calculated as;

Formula = Amount/rate

= 11,400/12%

= $95,000

c. $19,000 for each of 10 years.

This is an annuity. The formula for calculating the Present value/ discounted cashflow of an annuity is;

Formula = Annuity * [\frac{( 1 - (1 + i)^{-n} )}{i} ] where <em>i </em>is interest rate and <em>n</em> is number of periods

= 19,000 * [\frac{( 1 - (1 + 0.12)^{-10} )}{0.12} ]

= $107,354.24

d. $6,500 next year and increasing thereafter by 5% a year forever.

This is a growing perpetuity. The present value/ discounted cashflow formula is;

= Amount / ( discount rate - growth rate)

= 6,500 / ( 12% - 5%)

= $92,857.14

ii. Choose <u>$19,000 for each of 10 years</u> as it has the highest present value.

7 0
3 years ago
When Jim Poss bought used kitchen trash compactors to tinker with and then tried some reverse engineering to test the feasibilit
Aleonysh [2.5K]

Answer:

The correct answer is a.

Explanation:

Innovators are characterized by continuously trying out new experiences and implementing ideas that do not exist. They tend to visit new places, try new things, seek new information and experiment to learn new things. In these ways, they can broaden the diversity of their knowledge and increase their ability to innovate.

Have a nice day!

8 0
3 years ago
If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 110 million, it
SCORPION-xisa [38]

If the real output of a DVC increases from $200 billion to $260 billion and its population increases from 100 to 110 million, its real per capita output will have increased by about $167. This is further explained below.

<h3>What is real per capita output?</h3>

Generally, The real gross domestic product per capita is a figure that is calculated by dividing the entire economic output of a nation by the total population of that country after adjusting for inflation.

In conclusion, If the actual production of a DVC goes from $200 billion to $260 billion and at the same time its population goes from 100 million to 110 million, then the real output per capita will have climbed by around $167.

Read more about real per capita output

brainly.com/question/15694733

#SPJ1

3 0
1 year ago
What is the most important source of revenue and the major type of expenditure at the Federal level? At the state level? At the
Margarita [4]

The largest share of the revenues from property taxes and sales and gross receipts taxes are generally received from state and local governments. Individual income taxes are another major source of income.

Explanation:

In fiscal 2010 the total US government and local tax revenues—35% came from property taxes and 34% from sales and gross taxes. In 2010, local governments collected a little more than 75% of their 2010 property tax receipts. Local government tax revenues are primarily financed by property taxes.

Nevertheless, sales taxes and gross income taxes were the major source of revenue for governments. In 2010, the Member States received less than half of their income from sales and gross receipts taxes.

5 0
3 years ago
Other questions:
  • Is what we call the stock of goods that a business or store has on hand?
    12·1 answer
  • Which statement best explains the law of demand?
    6·2 answers
  • This month, a company receives $5,000 from a regular customer, of which $3,000 is for products delivered last month and $2,000 i
    14·1 answer
  • Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour
    11·1 answer
  • The term ___________________ describes the proportion of deposits that the bankmust hold in the form of reserves that are not lo
    12·1 answer
  • Which of the following phrases best describes the accomplishment to be listed on a résumé?
    5·2 answers
  • Enlightened carmakers have hired women designers, engineers, and marketing executives to better understand the way women decide
    6·1 answer
  • The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: Account
    9·1 answer
  • In an open economy, gross domestic product equals $2,450 billion, consumption expenditure equals $1,390 billion, government expe
    10·1 answer
  • The advantages of using a franchising strategy to pursue opportunities in foreign markets include:.
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!