Which types of credit involve repaying different amounts each month, depending on your activity?

Which of the following is not a way to accomplish an activity cost reduction? a.improve operations so that the activity-base usa

maw [93]

Answer:

b. use lower-cost materials

Explanation:

In Accounting, costing is the measurement of the cost of production of goods and services by assessing the fixed costs and variable costs associated with each step of production.

Production costs can be categorized as;

1. Variable costs: these are costs that usually change with respect to changes in the level of production or output. Examples are direct labor, maintenance of equipment or machines, raw materials costs etc.

2. Fixed costs: these are the costs which are not directly related to the level of production or not affected by the quantity of output in an organization. Examples are rent, depreciation, administrative cost, research and development costs, marketing costs etc.

Some of the ways to accomplish activity cost reduction are;

I. The operations of a business firm should be improved in order to make the activity-base usage per unit to be reduced.

II. The classification of employees doing an activity should be changed so as to decrease the activity rate.

5 0

3 years ago

The Rosa model of Mohave Corp. is currently manufactured as a very plain umbrella with no decoration. The company is considering

user100 [1]

Solution :

1. Incremental analysis when the demand for the decorated umbrella is 10,000 units.

$\text{Particulars}$ $\text{Rosa umbrella}$ $\text{Decorated umbrella}$ $\text{Incremental}$

$\text{Sales revenue}$ $80000 $190000 $110000

$\text{Less: Variable cost}$ $ 45000 $120000 $75000

Contribution $35000 $70000 $35000

$\text{Less: Additional}$ --- $10000 $10000

development cost.

$\text{Differential profit}$ $35000 $60000 $25000

The company earns an additional profit of $\$25,000$ if it decorates and sells the Rosa umbrella.

2. The company, Mohave should add the decorations to the Rosa umbrella as this would increase the net revenues of the company by an amount of $25,000.

3.a. The demand for he decorated umbrella will fall to 8,000 units due to the higher price. If the company does not make any changes to the Rosa umbrella, it could sell 10,000 units.

The incremental profit or loss is :

Incremental analysis when the demand for the Rosa umbrella is 10,000 units and for the decorated umbrella is 8,000 units is given below:

$\text{Particulars}$ $\text{Rosa umbrella}$ $\text{Decorated umbrella}$ $\text{Incremental}$

$\text{Sales revenue}$ $80,000 $152,000 $72,000

$\text{Less: Variable cost}$ $45,000 $96,000 $51,000

Contribution $35,000 $56,000 $21,000

$\text{Less: Additional}$ ---- $10,000 $10,000

development cost.

$\text{Differential profit}$ $35,000 $46,000 $11,000

The incremental profits are : $11,000.

3.b. The company should decorate and sell 8000 units of the decorated umbrellas as the increase in the net profit is $11,000.

8 0

3 years ago

What are the instruments used in quantitative research?

kolezko [41]

most commonly used research instruments in quantitative research studies include ‡ Questionnaire and ‡ Tests.
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5 0

3 years ago

Firefly Inc. sold land for $225,000 cash. The land has been purchased five years earlier for $275,000. The loss on the sale was

mel-nik [20]

Answer:

Cash inflow of $225,000

Explanation:

Land is a non-current asset and the proceeds from sale of non-current assets form part of investing activities. Firefly Inc. has a cash inflow of $225,000 from the sale of land. So the cash received from sale of land will be added to cash flow from investing activities in the head: Purchase or Sale of an Asset.

5 0

3 years ago

How you gain information about what is happening around the property

Neporo4naja [7]

Answer:

Security Cameras, Security Guards, Radios, Drones.

Explanation:

5 0

3 years ago