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2 years ago

How gross profit or loss is calculated

Business

1 answer:

vampirchik [111]2 years ago

8 0

Answer: See explanation

Explanation:

The Gross Profit for a company simply refers to the income that a particular company has left after the company has paid it's direct expenses that was incurred during production.

The formula to calculate the gross profit is:

Gross Profit = Revenue – Cost of Goods Sold.

In a case whereby the cos of goods sold is more than the revenue, we will get a gross loss.

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The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactu

Sholpan [36]

Answer: A.exceed units sold

Explanation:

In Absorption Costing, All costs be it Fixed or Variable that are directly related to production are considered when computing the Cost of Production.

Under Variable Costs however, only variable Costs are considered for the computing of Cost of Production.

This difference in consideration of costs under each method leads to difference in income determination under each method.

Under Absorption Costing, fixed manufacturing costs are apportioned on produced units and the costs are only recovered when the units are sold but under variable costing, fixed manufacturing costs are treated as period costs and are therefore charged to the Income statement.

This means that, the amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured exceed units sold.

8 0

2 years ago

Alan, 46, and Donna, 33, are filing a joint return for 2019. Neither is blind, and neither can be claimed as a dependent. They d

maksim [4K]

Answer:

$24,400

Explanation:

Assuming that Alan and Donna are married and they decide to file their taxes together, the standard deduction for 2019 taxes was $24,400.

The standard deduction increases if you or your spouse is over 65 years old, or if any of you is blind. The standard deduction generally increases a little bit every year, e.g. during 2018 it was $24,000 and for 2020 it is $24,800.

8 0

3 years ago

The chart gives prices and output information for the country of Utopia. Use this information to calculate real and nominal GDP

skad [1K]

Answer: Nominal GDP 2016 = $7,100

REAL GDP 2016 = $3,700

Nominal GDP 2017 = $4,500

Real GDP 2017 = $4,500

Explanation:

To calculate the Nominal and Real GDPs we use the following formulas,

Nominal GDP = Sum of (Current Year Price x Current Year Quantity)

Real GDP = Sum of (Base Year Price x Current Year Quantity)

We make the assumption that 2017 is the base year so calculating would be,

Nominal GDP, 2016 = [(7 x 600) + (70 x 20) + (300 x 5)]

= $(4200 + 1400 + 1500)

= $7,100

Remember for this we will use 2017 as the base year so we will use 2017 prices

Real GDP, 2016 = [(3 x 600) + (20 x 20) + (300 x 5)]

= $(1800 + 400 + 1500)

= $3,700

Nominal GDP, 2017 = [(3 x 400) + (20 x 90) + (300 x 5)]

= $(1200 + 1800 + 1500)

= $4,500

Now seeing as 2017 is the base year, it's nominal and real GDPs will be the same.

Real GDP, 2017 = $[(3 x 400) + (20 x 90) + (300 x 5)]

= $(1200 + 1800 + 1500)

= $4,500

I included the details part of question so it is clearer.

If you have need any clarification do react or comment.

3 0

2 years ago

The comparison of the actual results of capital investments to the projected results is referred to as?

harina [27]

The comparison of the actual results of capital investments to the projected results is referred to as post-audit.

The payback method determines how long it will take for the company to recoup its investment. Annual cash flows are compared to the initial investment, but the time value of money is not considered and cash flows beyond the payback period are ignored.

Companies apply the time value of money in a variety of ways to make yes or no decisions about investment projects and between competing projects. Two of the most common methods are net present value and internal rate of return (IRR).

The minimum return on the capital investment required by management is called the return on investment. The collection method considers cash flows that occur both during and after the collection period.

Learn more about capital investments at

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#SPJ4

6 0

1 year ago

which term refers to the situation where the parties involved in a civil case come to an agreement and and is overseen by an imp

ycow [4]

Mediation maybe I think that’s the correct answer

5 0

3 years ago

How gross profit or loss is calculated​

How gross profit or loss is calculated