Answer:
<u>B. extended product line length</u>
Explanation:
- The product line is a pricing strategy refers to as the pricing line extension and its purpose is to attract new customers, who may or may not be familiar with the current standard product line.
- Thus It adds a higher quality to the current products, considered as trading and forward stretch. Various features include the price lining, bundle pricing, bait pricing, leader pricing.
- Supermarkets like Walmart and amazon can often apply stretch top product lines so s to often grade there products to ensure that all markets are covered as to gain the maximum interest from customers.
Answer:
1. The firm does not have excess capacity.
Minimum transfer price on full capacity = Variable Cost + Contribution to be Lost
Minimum transfer price on full capacity = $360 + ($600 - $360)
Minimum transfer price on full capacity = $360 + $240
Minimum transfer price on full capacity = $600
Transfer Price = $600 per Unit (Market price per unit).
2. The firm does have excess capacity. Minimum transfer price on excess capacity = $360 per Unit (Standard Variable Manufacturing cost per unit).
Answer:
a. $519
b. $481.69
c. $500 Today
Explanation:
a. Computation of amount in one year
= $500 × 1.038
= $519
for computing the 1.038 (1 + 1.038)
b. Computation of amount of today
= $500 ÷ 1.038
= $481.69
c. $500 today
No, because today I have money and it will not depend on when I need the money. I can earn interest and invest the amount till the time I need the money actually.
Answer:
Chapter 1 introduces the study of accounting. Accounting is defined as a set of concepts and techniques that are used to measure and report financial information about an economic entity. Accounting consists of both external reporting issues known as “financial accounting,” and internal reporting issues related to “managerial accounting.”
Explanation:
Answer:
3. ending work in process is less than the amount of the beginning work in process inventory.
Explanation:
As we know that
Manufacturing cost = Cost of Goods Manufactured - Direct Labor - Direct Materials Used + Ending balance of Work-in-Process Inventory - the Opening balance of Work-in-Process Inventory
And, the Manufacturing cost involves both cost i.e direct material and direct material used
If the cost of goods manufactured more than the total manufacturing costs, so automatically ending WIP inventory should be less then the beginning WIP inventory
