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2 years ago

Consider the following comments about absorption- and variable-costing income statements:

Business

1 answer:

GrogVix [38]2 years ago

7 0

Answer:

E) I, II, and III.

Explanation:

Variable costing can be regarded as a concept of managerial accounting cost

whereby during the period of producing the product there is incurred

manufacturing overhead.

Absorption costing income statement, utilize absorption costing when creating income statement. The income statement focus on the cost through sectioning of cost into period cost and product.

It should be noted that

I. A variable-costing income statement discloses a firm's contribution margin.

II. Cost of goods sold on an absorption-costing income statement includes fixed costs.

III. The amount of variable selling and administrative cost is the same on absorption- and variable-costing income statements.

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Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payme

mezya [45]

Answer: a. $120,000

b. $6,000

c. Yes

Explanation:

a. It is said that the collection centres would help reduce the collection time by 2 days and that every day $60,000 comes in.

If the proposal will reduce the amount of time taken to collect by 2 days then that means that the amount freed up is the amount that they would have collected in two days had it not been for the system.

That amount would be,

= $60,000 * 2

= $120,000

b. If they used this free up cash to pay off a debt that was accumulating 5% per year then the 5% will be saved.

The amount saved therefore is,

= 120,000 * 5%

= $6,000

By retiring a $120,000 that was accruing $6,000 a year, the proposal has enabled that $6,000 to be saved instead.

c. The cost of implementing this proposal is $5,200 per year and yet the savings it gives in interest is $6,000.

As the savings are higher than the cost, the number definitely suggest that the project should be implemented because it is more beneficial than it costs.

8 0

3 years ago

Cheryl purchased 5 identical hollow pine doors and 6 identical solid oak doors for the house she is building. The regular price

almond37 [142]

Answer:

The answer to this question is option C. $560

Explanation:

We can let the price of each hollow pine door = d and of each solid oak door = 2d.

Since each pine door = 40, d = 40, and the regular price of each solid oak door is (2)(4) = 80.

With a 25% discount, each solid oak door is 0.75(80) = 60.

So, the six oak doors cost 6 x 60 = 360 dollars, and the five pine doors cost 5 x 40 = 200 dollars. Thus, the total is 560 dollars.

Hence the answer is C

6 0

3 years ago

Read 2 more answers

Which one of the following would probably benefit the most from personal financial planning services?

BartSMP [9]

The answer is B)<span> Older persons nearing retirement and needing to know what their income will most likely be during retirement

Option D, would be wrong since without the means to have a financial planning assistant would not really be able to achieve much aside from probably saving some more money.

However, older people who are nearing retirement are probably at the top of their careers and have a lot of savings in cash, bongs, stocks and maybe even property.

It is these kinds of people who can get maximum benefit from proper financial planning.
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4 0

3 years ago

Read 2 more answers

Winnebagel Corporation currently sells 28,000 motor homes per year at $84,000 each and 7,000 luxury coaches per year at $135,000

MissTica

Answer:

$825,050,000

Explanation:

Calculation to determine the amount to use as the annual sales when evaluating this project

First step is to calculate the new product line sales

New product line sales =29,000*$24,700

New product line sales = $716,300,000

Second step is to calculate Increased sales of the motor home line

Increased sales=2,500*$84,000

Increased sales = $210,000,000

Third step is to calculate the loss in sales

Loss in sales=750*$135,000

Loss in sales= $101,250,000

Now let calculate the amount to use as the annual sales when evaluating this project

Net sales = $716,300,000 + $210,000,000 - $101,250,000

Net sales = $825,050,000

Therefore the amount to use as the annual sales when evaluating this project is $825,050,000

4 0

3 years ago

A process costing system is employed in those situations where: Group of answer choices full or absorption cost approach is not

anygoal [31]

Answer:

where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

Explanation:

Process costing can be regarded as accounting methodology which helps in tracing and accumulation of direct costs, s well s allocation of indirect costs of a manufacturing process. In this method, Costs are been assigned to products, and this is usually in a large batch, and could encompass an entire month's production.

It should be noted that process costing system is employed in those situations where where manufacturing involves a single, homogeneous product that flows evenly through the production process on a continuous basis.

7 0

2 years ago