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nydimaria [60]
3 years ago
12

After serving a good number of customers in its home state, Marble Cakes, Inc. has set up business in three other states with ad

ditional menu options of cupcakes, donuts, and coffees to generate new customers. This has enabled the company to successfully maintain its corporate strategy. Marble Cakes, Inc. is engaging in which of the following? Select one.
a)Vertical integration
b)Horizontal diversification
c)Horizontal specialization
d)Vertical specialization
Business
1 answer:
gtnhenbr [62]3 years ago
3 0

Answer:

b)Horizontal diversification

Explanation:

Horizontal diversification is defined as the process by which a business starts providing a product that is unrelated to its previous products supplied.

However the market is a similar one.

In the given scenario Marble Cakes, Inc. has set up business in three other states with additional menu options of cupcakes, donuts, and coffees to generate new customers.

The new set of products are completely different from the one initially supplied, but sales is in similar market as before.

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A job cost sheet of Fugate Company is given below.
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Answer:

A.Direct material 5,320

Direct labour 1,700

Manufacturing overhead 2,550

B. Total cost 9,570

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C. Dr Finished goods inventory account 9,570

Cr Work in Process inventory account 9,570

Explanation:

A. Calculation for the predetemined manufacturing overhead rate

Date Direct material Direct Labour Manufacturing Overhead

5/10 1,330

12 1,120

15 550 825 825

22 480 720 720

24 1,000

27 1,870

31 670 1,005

Total 5,320 1,700 2,550

B. Calculation for the total cost and the unit cost of the completed job

Cost of Completed job :

Direct material 5,320

Direct Labour 1,700

Manufacturing Overhead 2,550

Total Cost 9,570

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C.Therefore when a job is fully completed, thebFinished goods inventory account will be

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Journal entry

May.31

Dr Finished goods inventory account 9,570

Cr Work in Process inventory account 9,570

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