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sashaice [31]
2 years ago
6

Young Company is beginning operations and is considering three alternatives to allocate manufacturing overhead to individual uni

ts produced. Young can use a plantwide rate, departmental rates, or activity-based costing. Young will produce many types of products in its single plant, and not all products will be processed through all departments. In which one of the following independent situations would reported net income for the first year be the same regardless of which overhead allocation method had been selected?
a. All production costs approach those costs that were budgeted.
b. The sales mix does not vary from the mix that was budgeted.
c. All manufacturing overhead is a fixed cost.
d. All ending inventory balances are zero.
Business
1 answer:
ycow [4]2 years ago
8 0

Answer:

d. All ending inventory balances are zero.

Explanation:

Manufacturing overhead is an indirect cost which occurs when the production is done. Examples are Depreciation, Repairs and Maintenance etc.

All ending inventory balances are zero is the correct option because there is no opening balance and any change in net income is recorded in the balance sheet so, there will be no closing balance.

All production costs approach those costs that were budgeted, The sales mix does not vary from the mix that was budgeted and  All manufacturing overhead is a fixed cost are all incorrect.

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A recent study conducted by Estelle Cosmetics Company showed that heavy users of Estelle's products comprise a small percentage
s344n2d4d5 [400]

Answer: Segmentation by usage

Explanation: Segmentation by usage splits customers according to how often they use a product. Using segmentation by usage, customers can be classified into non - users, who don't use the product at all, light and medium users, who can range from little usage of the product to average use of the product, and heavy users, who mostly use these products.

From thr first paragraph it is clear that usage segmentation is used to separate the user's into different classes based on their usage, and identify which class to target when it comes to sales. At Estelle Cosmetics Company, it was deduced that of this company's total sales, less than 7% of this market are heavy users. These users purchase nearly 71% of the company's products. This company will probably focus their marketing efforts on the heavy users, as they contribute to the majority of sales within their company.

7 0
3 years ago
The current ratio includes at the of the following except :
Umnica [9.8K]

Answer: B i believe

Explanation:

7 0
3 years ago
Read 2 more answers
Describe the role that workers play in the game of economics.
uranmaximum [27]
They function as consumers and producers because while they work, they are creating goods/ providing services that contribute to the economy. When they get paid, they become consumers who buy goods/pay for services.
4 0
3 years ago
Use the indirect pattern when you need to soften or delay bad news until after an explanation is given. Understanding the four c
Trava [24]

Answer:

The correct answer is letter "B": Understanding.

Explanation:

While composing a text, the understanding buffering technique is helpful to show the reader the writer is concerned about what is being exposed. The buffering must provide a smooth transition to the explanation of the text. Thus, it must be written the most accurate possible.

5 0
3 years ago
Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 4.
Stels [109]

Answer:

a) 28%

b) 56%

Explanation:

Data provided in the question:

Operating profit margin = 7%

Asset turnover ratio = 4

Now,

a) ROA = Profit margin × Asset turnover ratio

= 7% × 4

= 28%

b) Given:

Debt-equity ratio = 1

Interest payments = $8,200

Taxes = $8,200

EBIT = $21,000

Now,

Total assets = Net income ÷ ROA

Also,

Net income = EBIT - tax - interest

= $21,000 - $8,200 - $8,200

= $4,600

Thus,

Total assets = $4,600 ÷ 28%

= $16428.57

also,

Total assets = Debt + Equity

or

Total assets = Equity × (\frac{\textup{Debt}}{\textup{Equity}}+1 )

or

$16428.57 = Equity × ( 1 + 1 )

or

=> Equity = $8214.28

Therefore,

ROE = Net income ÷ Equity

= $4,600 ÷ $8214.28

= 56%

4 0
3 years ago
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