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3 years ago

What is the difference between SG&A costs and Indirect costs?

1 answer:

6 0

SG&A is an initialism used in accounting to refer to Selling, General and Administrative Expenses, which is a major non-production cost presented in an income statement.

Indirect costs are costs that are not directly accountable to a cost object. Indirect costs may be either fixed or variable. Indirect costs include administration, personnel and security costs. These are those costs which are not directly related to production. Some indirect costs may be overhead.

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Barry's Hobbies produces and sells a luxury animal pillow for $80.00 per unit. In this month of operation, 3,000 units were prod

Vika [28.1K]

Answer:

Net operating income= 43,000

Explanation:

Giving the following information:

Selling price= $80

Production= 3,000 units

Sales= 2,750 units

Variable manufacturing costs $38 per unit

Variable marketing costs $ 2 per unit

Fixed manufacturing costs $60,000 per month

Administrative expenses, all fixed $12,000 per month

Ending inventories:

Finished goods 750 units

<u>Under the absorption costing method, the cost of goods sold includes the fixed manufacturing overhead. We need to calculate the unitary fixed overhead:</u>

Fixed unitary overhead= 60,000/3,000= $20 per unit

Income statement:

Sales= 2,750*80= 220,000

COGS= 2,750*(38 + 20)= (159,500)

Gross profit= 60,500

Variable marketing= 2,750*2= (5,500)

Administrative expenses= (12,000)

Net operating income= 43,000

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2 years ago

One advantage of free trade is: Group of answer choices advanced production operations are built in low-wage countries. innovati

marshall27 [118]

Answer:

Innovation for new products occurs which keeps firms competitively challenged

Explanation:

Free trade can be regarded as a

theoretical policy , that governments use when there is no imposition of

tariffs/taxes, as well as duties on imports as well as exports.

free trade can be regarded as the opposite of protectionism. It should be noted that One advantage of free trade is Innovation for new products occurs which keeps firms competitively

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2 years ago

a. The consumption schedule directly relates consumption to saving. b. consumption to the level of disposable income. c. disposa

V125BC [204]

Answer:

CONSUMPTION TO THE LEVEL OF DISPOSABLE INCOME

Explanation:

It typically measures the aggregate amount of disposable income of a household in comparison to their consumption. Two measurements are used I.e. Avetage Propensity to Consume (APC) which is obtained by dividing consumption by income and Marginal Propensity to Consume (MPC) which is the ratio of each individual dollar of household income spent on consumption.

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3 years ago

Typing resources allows managers to make better resource ordering decisions by:

SVETLANKA909090 [29]

Typing resources allows managers to make better resource ordering decisions by describing the size, capability, and staffing qualifications of a specific resource.

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3 years ago

Martinez Corporation commenced operations in early 2020. The corporation incurred $48,500 of costs such as fees to underwriters,

igomit [66]

Answer:

See below.

Explanation:

Since the expenses are related to the formation of the business, we first capitalize these expenses and record them in our balance sheet as,

Debit Intangible Assets (Formation) by $48,500

Credit Cash/Bank by $48,500

This records an asset for the year of operation.

We amortize or depreciate these type of capitalized costs over a defined period of time. Assuming that we write off the entire cost by the end of first year we will record amortization as,

Debit Amortization expense/Income statement by $48,500

Credit Intangible Assets (Formation) by $48,500

Hope that helps.

7 0

3 years ago