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Vanyuwa [196]
2 years ago
9

Why do overhead costs often shift from high-volume products to low-volume products when a company switches from a conventional c

osting method to activity-based costing
Business
1 answer:
sashaice [31]2 years ago
3 0

Answer:

When a company is using conventional costing methods, the costs are allocated based on volume so those products with a high volume will get a higher share of the costs.

When Activity-based costing is used however, costs are assigned more accurately which will lead to the actual products that are causing the costs incurring them instead of those high-volume products so it will appear as though overhead costs have shifted from high-volume products to low-volume products.

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BartSMP [9]

Answer: B. The firm hires 45 workers and earns a $1,200.00 Economic Profit

Explanation:

If the Market Equilibrium rate is $105 then the company should hire 45 workers as shown in the table.

If they did that, revenue would be $7,425

Expenses would be wages and fixed costs:

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Economic profit would be:

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= $1,200

6 0
3 years ago
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Olegator [25]

Answer:

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go for it!!

8 0
2 years ago
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Westkost [7]
The correct answer is Neutral stance
8 0
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solniwko [45]

Answer:

a

Explanation:

5 0
3 years ago
You are a student at ABC University. You recently read in the school's daily newspaper about a terrific investment opportunity t
Vlada [557]

Answer:

No

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