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3 years ago

Accountants use only _____ costs in their computations of short-run total cost.

1 answer:

3 0

Explicit costs

Explicit costs are those that are reflected by actual cash flows and are direct payments made to others when running a business. These include payments or costs associated with wage, rent, and materials.

The short-run total cost includes both the variable and the fixed costs associated with the production.

In calculating for accounting profit, only the explicit costs are considered. However, when calculating for economic profit, the implicit costs are also included in the calculations.

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Astin Company has current assets of $82,530, total assets of $242,050, total net income of $58,240, current liabilities of $72,1

JulijaS [17]

Answer:

$10,410

Explanation:

Working capital is the difference between a company's current or short term assets and its current liabilities or short term obligations. It gives an insight as to how liquid an organization is.

Working capital = Current assets - current liabilities

= $82,530 - $72,120

= $10,410

Astin's Company's working capital is $10,410

8 0

2 years ago

Generally, revenue from sales should be recognized at a point when

qaws [65]

Answer:

D. none of these answer choices are correct.

Explanation:

The principle of revenue recognition occurs when the revenue is realized or earned either cash is received or not and it also serves the accounting accrual basis. Realizable also means that the buyer gets the product but the payment is made afterward.

In this, it does not depend on cash transactions.

Hence, the option D is correct

3 0

2 years ago

The cost for a carton of milk is $3, and it is sold for $5. When the milk expires, it is thrown out. You also know that the mean

svetlana [45]

Answer:

a) $3

b) $2

c) 1449

Explanation:

Given:

The cost for a carton of milk = $3

Selling price for a carton of milk = $5

Salvage value = $0 [since When the milk expires, it is thrown out ]3

Mean of historical monthly demand = 1,500

Standard deviation = 200

Now,

a) cost of overstocking = Cost for a carton of milk - Salvage value

= $3 - $0

= $3

cost of under-stocking = Selling price - cost for a carton of milk

= $5 - $3

= $2

b) critical ratio = $\frac{\textup{cost of under-stocking }}{\textup{cost of overstocking + cost of under-stocking }}$

critical ratio = $\frac{\textup{2}}{\textup{3 + 2}}$

critical ratio = 0.4

c) optimal quantity of milk cartons = Mean + ( z × standard deviation )

here, z is the z-score for the critical ration of 0.4

we know

z-score(0.4) = -0.253

thus,

optimal quantity of milk cartons = 1,500 + ( -0.253 × 200 )

= 1500 - 50.6

= 1449.4 ≈ 1449 units

4 0

3 years ago

Department 1 completed work on 500 units and transferred them to Department 2. The cost of the units was $750. What is the jour

vaieri [72.5K]

Answer:

Dr. Cr.

Work-in-Process Inventory - Dept. 2: 750

Work-in-Process Inventory—Dept. 1: 750

Explanation:

All the cost incurred in the department 1 was added in the work in process account of this department. While transferring the product from one department to other the cost of work in process will also be transferred to next department to accumulate all costs associated with the product. At the end the finished goods will be carrying all the cost incurred to manufacture that product. Due debit nature of WIP account the cost in transferred to next department's account by just crediting the WIP of department 1 and debiting WIP of department 2. WIP of Department 1 will be 0 and WIP of department 2 will be $750.

8 0

2 years ago

The student is told that one of the four solids tested is actually barium chloride ,bacl2. which of the solids could be bacl2?

dem82 [27]

To find the correct answer, you should know that Barium Chloride is a strong electrolyte. A strong electrolyte will wholly complete the circuit as shown by a brightly powered light bulb. Therefore, the correct answer is a solid with a concentration of 0.20, where the strength of light emitted is bright. Remember that all strong acids and highly soluble ionic substances are strong electrolytes. Ionic compounds that are merely slightly soluble or are insoluble may act as a poor electrolytes.

6 0

3 years ago