Answer:
- How to best segment the ready-made dinner market.
Answer:
1. Companies using FIFO will report the highest gross profit and net income.
2. Companies using FIFO will report the smallest cost of goods sold.
3. Weighted average cost of goods sold will be between FIFO and LIFO costs of goods sold.
4. Companies using FIFO will pay higher taxes than companies using LIFO, assuming all else being equal.
Explanation:
If costs are rising, companies using FIFO will report higher profits simply because they calculate cost of goods sold based on the oldest products which were purchased at a lower cost.
FIFO and LIFO costs will be the extreme points, FIFO showing lowest costs while LIFO will result in the highest costs, while the weighted average will be in between.
Since companies using FIFO report higher profits, they will have to pay more taxes.
Answer:
5.602786
Explanation:
Units completed:
= 100% of (76,000 + 10,000)
= 86,000
Closing units:
= 25% of 15,000
= 3,750
Equivalent units = Units completed + Closing units
= 86,000 + 3,750
= 89,750
Opening cost = 52,100
Cost during the year = 450,750
Total cost = Opening cost + Cost during the year
= 52,100 + 450,750
= 502,850
Direct labor cost per equivalent unit:
= Total cost ÷ Equivalent units
= 502,850 ÷ 89,750
= 5.602786
<u>Explanation:</u>
a. <em>Remember</em>, the PPF (Production Possibility Frontier) framework allows for the selection of a preferred choice as regards budget spending. Hence, in such a situation, it calls for a choice to be made.
b. According to the PPF framework, where there is an increase in the population, it is expected that such change would result in an increase in the labor force capacity; and ultimately leading to an upward shift in the PPF curve. Thereby, increasing the overall production of the economy.
c. Within the PPF framework, a technological change that makes resources less specialized will result also result in an upward shift in the PPF curve.
Answer: A low-cost provider strategy
Explanation:
The low-cost provider strategy is a marketing strategy where the marketer makes his product the lowest priced in a very competitive market while still being able to make profit.
The low-cost provider strategy would be the best sales strategy in a price competitive market, as it would draw most buyers to the seller.
