3x5=15 marks

In its first year of business, Talula, Inc. produced and sold 600 units. If Talula uses variable costing, ________. A. its val

klasskru [66]

Answer:

C. its operating income will be the same under absorption costing.

Explanation:

VARIABLE COSTING is a managerial accounting cost concept. Under this method, manufacturing overhead is incurred in the period that a product is produced. This addresses the issue of absorption costing that allows income to rise as production rises. Under an absorption cost method, management can push forward costs to the next period when products are sold.

Variable costing is a costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

4 0

4 years ago

Tia and Eric went to trade school at the same time. Each graduated with an associate's degree. They have received similar perfor

8090 [49]

Answer:

differences in human capital

Explanation:

Here are the options :

differences in human capital

differences in signaling

discrimination

chance

Human capital is an example of an intangible asset. It is the economic value attached to labours' skills and expertise.

Qualities of human capital includes

Education.
on-the-job training.
Hard work
experience
Mental and emotional well-being.
People management.
Communication skills.

Tia's employer has more human capital qualities when compared with Eric's employer. Tia's employer is more hardworking and experienced. Due to these skills. Tia's employer is likely to make more profit than Eric's employer. This can explain the wage differential between Tia and Eric

7 0

3 years ago

A firm has current assets that could be sold for their book value of $32 million. The book value of its fixed assets is $70 mill

pickupchik [31]

Answer:

Market value of equity / book value of equity 72/52 = 1.38

The company is a little overvalued.

It means that the assets they have because the rate is declining, have a higher yield than the market, that's why their market value increase, therefore the investor will pay more to acquire the company or shares of the company because their profits will be above the common of the industry.

Explanation:

concept book value market value diference

current assets 32 millons 32 millons 0

long term assets 70 millons 100 millons +30,000,000

liabilities 50 millons 60 millons -10,000,000

TOTALS 70+32 - 50= 52 32+100-60=72 +20,000,000

Market value of equity / book value of equity 72/52 = 1.38

This ratio tries to determinate if a company is being undervalued or overvalued.

It is usually good to help a third party at the task of determinate whether or not a company's market value is suffering from speculation (when extremely overvalued)

When the ratio is below 1 It will mean that it is undervalued. The manager may interpret this that third parties see the company cheap while trading.

When it is above 1, it is overvalued, this means an investor will pay more for a portion of the company than it really has. This can lead to thinking that forecast profit is rising and because of that the investors are paying a premium. But if it gets really high, then it is saying that the company is subject to speculation and the price bubble may explode anytime.

7 0

3 years ago

What is a common way to purchase an automobile?

Luden [163]

Answer: with cash.. or you can set a loan

Explanation:

7 0

2 years ago

Devonshire Ventures is a large snack-food conglomerate that operates in more than 50 countries and employs more than 80,000 peop

san4es73 [151]

Answer:

D) a transnational strategy

Explanation:

From the description, Devonshire Ventures seems to be seeking a balance between local responsiveness and global integration hence said to use a transnational strategy. Another reason is because their operations and communication are between borders and beyond geographical boundaries so that each division can learn from each other globally.

4 0

4 years ago