Frankie's Chocolate Co. reports the following information from its sales budget:

_____ is defined as the relationship between benefits and the sacrifice necessary to obtain those benefits.

Umnica [9.8K]

Answer:

(A). Customer value

Explanation:

For a customer to obtain value or benefit from using a product, he or she must first make a sacrifice, such as the amount of money spent or time taken to purchase the product.

Customer value refers to that benefit the customer gets from using the product, compared to the sacrifice the customer makes to get it.

3 0

3 years ago

Akika Corporation started as a small firm and has grown substantially in the past decade. Its interests span from electronics to

AysviL [449]

Answer: d. Unity of direction

Explanation:

The principle of Unity of Direction is one of the 14 principles of Fayol in relation to administration. Summarised into one phrase, the principle would mean, One Head One Plan.

This is because the principle believes that when in a company, different departments aim to achieve distinct goals, the departments should have a sole leader and a sole plan for the goals that should be accomplished so that there is no confusion.

This is why the Akika Corporation wants to create independent domains that reflect the actions they perform and will have the distinct roles needed to help them perform the actions efficiently.

6 0

4 years ago

What are the importance of training for all types of occupations?

tigry1 [53]

Education and training provides employers, managers, supervisors, and workers with: Knowledge and skills needed to do their work safely and avoid creating hazards that could place themselves or others at risk. Awareness and understanding of workplace hazards and how to identify, report, and control them.

5 0

3 years ago

Read 2 more answers

Shoemaker Perkins Company uses a standard cost system for raw material X15. The standard cost is $10 per pound. The standard cal

AURORKA [14]

Answer:

Actual Quantity 1500 pounds

Materials price variance $ 1500 Favorable

Explanation:

Shoemaker Perkins Company

Given

Each unit requires 2 pounds of materials X15 at standard.

Standard cost is $10 per pound

Actual Cost $ 9 per pound

Actual No of Units Manufactured = 600

Standard Quantity allowed= 600* 2= 1200 pounds

Materials Usage Variance = $3000 unfavorable

We find the actual quantity by putting the values from the given data in the formula of material quantity variance which is also called material usage variance.

Formula

a. Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

$3000= $ 10*Actual Quantity- $ 10 * 1200

$3000= $ 10*Actual Quantity- 12000

$3000 + 12000= $ 10*Actual Quantity

$ 10*Actual Quantity=15000

Actual Quantity= 15000/10= 1500 pounds

Now the Materials price variance can be calculated by putting the values in the formula of Materials price variance .

b.Materials price variance = (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Materials price variance =( $ 9 *1500)- ($10* 1500)

Materials price variance = 13500- 15000= $ 1500 Favorable

It is favorable because the standard price is more than the actual price.

8 0

3 years ago

The EG Company produces and sells one product. The following data refer to the year just completed: Beginning Inventory 0 units

Ivahew [28]

Answer:

Part a. What is the unit product cost for the month under variable costing?

Direct Materials 200

Direct Labor 50

Variable Manufacturing Overhead 30

Unit product cost 280

Therefore Unit Product cost is $280

Part b. What is the unit product cost for the month under absorption costing?

Direct Materials 200

Direct Labor 50

Variable Manufacturing Overhead 30

Fixed Manufacturing Overheads(300,000/25000) 12

Unit product cost 292

Therefore Unit Product cost is $292

Part c. Prepare a contribution format income statement for the year using variable costing.

Sales (20,000× $400) 8,000,000

Less Cost of Sales ( 5,600,000)

Opening Stock 0

Add Cost of Goods Manufactured (25,000× $280) 7,000,000

Less Closing Stock (5,000×$280) ( 1,400,000)

Contribution 2,400,000

Less Expenses:

Fixed Manufacturing Costs 300,000

Variable Selling and Administrative Expenses (20,000×$15) 300,000

Fixed Selling and Administrative Expenses 275,000

Net Income 1,525,000

Part d. Prepare an income statement for the year using absorption costing.

Sales (20,000× $400) 8,000,000

Less Cost of Sales ( 5,840,000)

Opening Stock 0

Add Cost of Goods Manufactured (25,000× $292) 7,300,000

Less Closing Stock (5,000×$292) ( 1,460,000)

Gross Profit 2,160,000

Less Expenses:

Variable Selling and Administrative Expenses (20,000×$15) 300,000

Fixed Selling and Administrative Expenses 275,000

Net Income 1,585,000

Explanation:

Part a. What is the unit product cost for the month under variable costing?

Only Variable Manufacturing Costs are included as Product Cost

Part b. What is the unit product cost for the month under absorption costing?

Both Variable Manufacturing Costs and Fixed Manufacturing Costs are included as Product Cost

Part c. Prepare a contribution format income statement for the year using variable costing.

Fixed Manufacturing Costs and Non-Manufacturing Costs are treated as Period Costs

Part d. Prepare an income statement for the year using absorption costing.

Only Non-Manufacturing Costs are treated as Period Costs

3 0

3 years ago