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olga2289 [7]
3 years ago
5

Management is considering a one-time-only special order. There is sufficient idle capacity to fill the order without affecting a

ny normal sales. Which one of the following is NOT relevant in making the decision?
A) absorption costing unit product costs
B) variable costs
C) incremental costs
D) differential costs
Business
1 answer:
Anna [14]3 years ago
6 0

Answer: A) absorption costing unit product costs

Explanation:

Absorption costing is the costing convention that is used when fixed costs need to be apportioned to the production of goods and services.

When a company has idle capacity, any production done using that idle capacity would incur no fixed costs because the fixed costs for the entire capacity, both idle and non-idle have been covered already as fixed costs are charged on the entire company capacity.

Absorption costing is therefore not relevant here as the company will use its sufficient idle capacity that has already incurred fixed costs.

You might be interested in
The ABC Corporation decreases all of its inputs by 12 percent and finds that its output falls by only 8 percent. This means that
RoseWind [281]

Answer:

In the range of diseconomies of scale

Explanation:

Economies of scale refers to a concept whereby a firm accrues cost advantage owing to it's increased scale of production.

Economies of scale points towards efficient production.

Conversely, Diseconomies of scale refers to the phase wherein a firm experiences cost disadvantages owing to increase in organizational operations and output level.

Reasons for operation of this phase being, lack of motivation and proper coordination between employees since there are too many employees and management gets difficult.

In the given case, as the corporation decreased it's inputs, the output fell less proportionately which means the firm was earlier operating in the phase of diseconomies of scale.

6 0
3 years ago
Please give a complete answer to all questions, citing the legal principle to support your answer.
Alex Ar [27]

1. In the criminal justice system, John can temporarily put Jack in custody pending the arrival of the police.  Jack was not detained for a period longer than five minutes and not for a civil wrong.

Thus, in this lawsuit for the tort of unlawful imprisonment, Jack will lose because he committed a crime.  He cannot apply a civil law to a criminal case.

2. Adriana is correct that her personal assets cannot be reached in this lawsuit brought by the shareholders of DEF, Inc. because SLA Accountants, LLP is a limited liability partnership and not just an ordinary partnership.

A limited liability partnership, like a limited liability company, offers members limited liability.  However, the shareholders of DEF, Inc. may decide to sue Adriana personally.

3. Andrew is wrong because the car handed over by Sam was not a completed inter-vivos gift. The transfer was not absolute but conditional upon Sam not returning from the Middle East.

As a conditional transfer of gift, the vesting of the ownership interest created by the transfer depends on the fulfillment of a condition.

Thus, since the transfer condition did not materialize, Andrew should return the car to Sam in good faith.

Learn more about inter vivos gifts and limited liability partnerships here brainly.com/question/14767795 and brainly.com/question/1166757

5 0
2 years ago
is the present value of these cash flows? (Enter rounded answers as directed, but do not use rounded numbers in intermediate cal
Artemon [7]

Answer and Explanation:

1A. For investment X, given 6% discount rate, 6700 PMT, N= 9 years

Present value of investment X= 6700* PVIF using 6%, 9 years

= $45751.34

For investment Y, given 6% discount rate, 9200 PMT, N= 5 years

Present value of investment Y =9200*PVIF using 6%, 9 years

=$38753.75

1B. Investment X from the above has higher present value

2A. For investment X, given 22% discount rate, 6700 PMT, N = 9 years

Present value of investment X

=6700*PVIF using 22% ,9 years

= $25368.11

For investment Y, given 22% discount rate, 9200 PMT, N = 5 years

Present value of investment X

=9200*PVIF using 22% ,N = 5 years

= $26345.49

2B. Investment Y from the above has higher present value.

7 0
3 years ago
The cost system best suited to industries that manufacture a large number of identical units of commodities on a continuous basi
ValentinkaMS [17]

Answer:

Process Costing

Explanation:

Process Costing allows so many units to be in production at the same time which are identical. The cost of each unit can be determined by calculating the average price using to total units produced.

7 0
4 years ago
Giant Company has three products, A, B, and C. The following information is available:
myrzilka [38]

Answer:

$24,000

Explanation:

                             Product A      Product B     Product C

sales                        70,000            97000

Variable  cost           37000            51000

Contribution margin 33000            46000

Avoidable cost          10,000           20000

Unavoidable cost       7000             12000         9400

Operating income      16000            14000

Total operating income if product C is dropped is (16000+14000 +3400-9400)

=$24000

Please note that Giant company with still incur the unavoidable cost even if the product is dropped. This is assumed to be a portion of the fixed overhead expenses allocated to the product in the course of normal operation.However , the loss made of 3400 will be avoided as well

7 0
3 years ago
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