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MAXImum [283]
3 years ago
14

Under absorption costing, fixed manufacturing overhead is expensed at the time the units are produced. Under variable costing, f

ixed manufacturing overhead is expensed at the time the units are sold.A. TrueB. False
Business
1 answer:
ladessa [460]3 years ago
4 0

Answer:

A. True

Explanation:

In the case of absorption costing, the fixed manufacturing overhead should be incurred at the time when the units are generated or produced. While on the other hand, in the case of variable costing the fixed manufacturing overhead should be incurred at the time when the units are sold

Therefore the given statement is true

Hence, the correct option is a.

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Read 2 more answers
Carter Pearson is a partner in Event Promoters. His beginning partnership capital balance for the current year is $55,500, and h
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Answer:

b. 9.75%

Explanation:

When a partner invests in a business, he/she expects to get return on his equity in the business. The major reason for this is to compare his/her return in the partnership business with the return he/she could get elsewhere.

The return on partner equity is calculated by dividing his/her net income from the partnership business by his/her average capital for the period.

The formula is given below:

<u> Net income       </u>  x 100

Average capital

Average capital  = <u>Opening capital balance + Closing capital balance</u>

                                                                    2

For Carter Pearson, the average capital is =<u> $55,500 + $62,500</u>

                                                                                   2

= $59,000

The return on equity will be: <u>$5,750  </u> x 100

                                                $59,000

= 9.7457

= 9.75%   - approximate to two decimal point.

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