Answer:
The given statement is false.
Explanation:
First we have to compute the total cost which is attached to a product which is shown below:
= Direct material cost + Direct labor cost + variable overhead cost
= $2 + $4 + $1.5
= $7.5 per unit.
Since the total cost comes $7.5 per unit and the special order sold at $10 per unit which shows a difference of $2.5 per unit. By taking a difference of $2.5 per unit, the company can earn more profits than earlier.
And, the selling price for special order is high than the total cost which increase the profitability of a company.
The other cost is irrelevant as the calculation part is not depended on these cost like fixed cost, production capacity, etc.
Thus, the given statement is false.
I think that you could say it mostly like that by make your words more descriptive, I don’t really know what your going for tho
Answer:
The correct answer is C. Expensed as incurred.
Explanation:
Intangible costs are losses in productivity, decreased quality or injury to employees. These represent a fall in employee morale, dissatisfaction with working conditions or customer disappointment. Intangible costs are the result of an identifiable source, but these costs were not anticipated. They occur after a new practice or policy is implemented. Management will estimate intangible costs as soon as it sees a loss pattern. This estimate will be the basis of the decision to change or continue a practice that frustrates employees or customers. If a new procedure has injured an employee, the company will act quickly to avoid fines and government inspections
Answer:
The correct answer is b. after taxes minus preferred dividends.
Explanation:
Net profit: Add all the revenues of the firm and deduct all the expenses of the firm. If the amount come in positive, the firm earns profit else suffered loss.
In mathematically,
Net profit = Sales revenue - all expenses
The earning which is available to shareholders is net profit after paying preference dividend to preference shareholders.
As first we have to pay the dividend to preference shareholders then we distribute the income to equity shareholders.
In mathematically,
EBIT - taxes - Preferred dividend
Hence, the correct option is b. After taxes minus preferred dividends.
Cheap labor and raw materials.
Margin generally occur when there is a capacity to produce more with cheap labor and enough raw material for the production.
In comparison to the developing countries, the capital investments flow from high wage core countries to low wage periphery regions. Wage employment is far less than the daily wage earners.
Labor changes occur in both the kind of wage rate and employment. Shifts take in case both high to low and low to high variations to maintain stability both between the production procedure, employment and labor ratio . All depends on the situation of the economy in a country.
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