Weighted average cost = 8.94 per unit
Average cost = $9
<u><em>The weighted average cost </em></u><em>o of valuation of inventory uses weighted average price. The weighted average price is computed by dividing total cost of quantity purchased till date by the quantity purchased. This average price is impacted by the relative weight (quantity) of the batches that make up the stock till date.</em>
This price re-computed every time a new batch is received
The weighted average price for Sheffield
= (155× $8)+(600× $8) +( 105 × $10)/(155+600+105) units
= 7690/860 units
= 8.94 per unit
<u><em>Average unit cost</em></u><em> is a simple average method. It has the problem of been influenced by extreme prices during volatile periods.</em>
Average unit cost
= ($8 + $9 + $10)/3
= $9 per unit
The computation of the total budgeted direct labor cost is shown below:
= Number of units to be produced × number of hours per unit × labor cost per hour
= 34,400 units × 3 hours × $15
We simply multiplied the number of units to be produced with the number of hours per unit and the labor cost per hour so that the accurate amount can come
The statement is: True.
Perfectly competitive markets are theoretical markets characterized by having many buyers and sellers, where products are homogeneous, having easy conditions for entry or exit of new firms, and where producers are price-takers because the price is determined by supply and demand.
In such a scenario, <em>companies could not set different prices such as in a price discrimination approach because consumers would rather go to the competition.</em>
The correct answer is b. equality is increased and efficiency is decreased.
Progressive taxes are considered those in which the economic capacity of the person or the company is taken into account, that is: the higher the economic capacity the value to be paid for the tax increases. The objective of this type of taxes is that the payments made by people or companies are made proportionally to their income. Direct taxes are usually progressive.
An example of a progressive tax is the income tax, in the case of natural persons the value to be paid for this concept depends on the taxable liquid income.
B. opportunity costs are experienced whenever choices are made. this means that for a decision to be made in respect to purchasing items from a supermarket, one will forgo an item based on urgency and if it will bring utility to an individual