Answer:
D. are incurred even if nothing is produced.
Explanation:
There are primarily two types of costs, i.e. the variable cost and the fixed cost. The variable cost is the cost that varies when the level of production changes, while the fixed cost is the cost that remains unchanged whether the level of production changes or not
So, by the above explanation, we can conclude that the fixed cost can be incurred if there is nothing to be produced.
Answer:
A. Identifying and defining the problem
Explanation: Before taking any action in a production environment one must be able to identify and define the problem.
Problem identification and defining is first approach to solving problems as it gives a clear picture of what and how the problem is,when it started and the possible threats it pose to the business entity.
When a manager wants to address a problem, he should first identify the problem,carry out steps that will help him or her to define what the problem is,through this he or she can be able to develop possible solutions.
Answer:
The higher the price, the higher the producer's profits. Your needs and wants are unlimited. If heavy competition for a product keeps its price low, businesses will be very motivated to offer the product for sale.
Answer:
$94.10 per unit
Explanation:
Total direct labor-hours 10,000
Total fixed manufacturing overhead cost $33,000
Variable manufacturing overhead per direct labor-hour $2.50
Job K332:
Number of units in the job 70
Total direct labor-hours 140
Direct materials $455
Direct labor cost $5,320
total variable overhead = $2.50 x 140 = $350
prorated fixed overhead = (total fixed overhead / total direct labor hours) x direct labor hours used = ($33,000 / 10,000) x 140 = $462
total product cost = direct labor + direct materials + variable overhead + prorated fixed overhead = $5,320 + $455 + $350 + $462 = $6,587
product cost per unit = $6,587 / 70 units = $94.10 per unit
