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2 years ago

Under activity-based costing, nonmanufacturing costs ______.

Business

1 answer:

algol [13]2 years ago

6 0

Under activity-based costing, non manufacturing costs may be allocated to products based on cause

For better understanding, lets explain the term

Activity based costing is commonly described as an overhead cost-allocation system that shares overhead to different activity cost pools and gives each of the activity cost pools to products or services through of cost drivers that shows the activities used.

It is usually based on the cause or motives under activity based costing is manufacturing cost allocation. That is the cause of its use.

From the above. we can say the answer Under activity-based costing, non manufacturing costs may be allocated to products based on cause is correct

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Inez hires josh to paint her portrait to her satisfaction for $4,000. when josh finishes the portrait, inez announces that she i

mamaluj [8]

If Inez is not satisfied with the painting by Josh, Inez does not have to accept the portrait or pay Josh any money. Inez does not have to pay Josh at all.

7 0

2 years ago

After graduation, you face a choice. One option is to work for a multinational consulting firm and earn a starting salary (ben

saveliy_v [14]

Answer:

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

Explanation:

Total explicit costs will be the total amount spent.

Therefore explicit costs =

Rent + office supplies + office staff + telephone expenses

Explicit costs = 10000 + 1000 + 24000 + 4000 = $39,000

Implicit costs= 40000 + (6000 * 0.07) =$40,420

Accounting profit = Total revenue - Total explicit costs

Accounting profit = $147,600 - $39,000 = $108,000

Economic profit = Total revenue - Total opportunity cost.

(Where total opportunity cost= explicit cost + implicit cost)

Therefore economic profits =

$147,600 - ($39,000+$40,420)

= $68,180.

Therefore,

Total explicit cost = $39,000

Implicit cost = $40,420

Accounting profit = $108,600

Economic profit = $68,180

5 0

2 years ago

Read 2 more answers

An effective Financial Management Process is dependent on a number of factors. Crucial is the establishment of a sound system of

Margaret [11]

Answer:

Internal control area: it is responsible to stablish monitoring process in all the areas of the organization that prevent unlawful practices that are not in compliance with the regulations, laws or any external norm applicable to the company.

Key areas: below find 3 areas as subjects important to control and 3 areas as departments within the company

prevention of reputational risk, prevention of credit risk, prevention of operational risk.

Internal audit area, Compliance area, Legal area.

Key controls:

dual controls in the manufacturing of products prevent operational errors
due dilligences of the commercial area regarding the customers that stablish a relationship with the company
setting manuals that contain how the procedures must be done.

8 0

3 years ago

A city street is a. always a public good, whether or not it is congested. b. a public good when it is congested, but it is a com

anyanavicka [17]

Answer:

a common resource when it is congested, but it is a public good when it is not congested.

Explanation:

We live in different areas, across city streets, with roads and they can either be public goods or common resources. Now, when the streets are not congested, it simply means that an individual can freely access the areas without that affecting any other person. In this simple case, the use by one person is not in rival consumption and so the streets are said to be a public good. But when the area is fully congested, people might find it difficult to move around through the areas. The use of the areas could cause negative externalities. Because the place would be overcrowded, people can only move at a slow pace. In this case, the street are said to be a common resource.

4 0

2 years ago

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Baker traded a building used in her business for some new land. Baker originally purchased the building for $50,000 and it had a

Fittoniya [83]

Answer:

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

Explanation:

Step 1: Determine the initial loss/gain in value of the building

initial loss/gain=original purchase price-adjusted basis

where;

original purchase price=$50,000

adjusted basis=$30,000

replacing;

initial loss/gain=50,000-30,000=$20,000

initial loss in value=-$20,000

Step 2: Determine the loss or gain from the exchange

loss/gain=35,000-30,000=$15,000

gain=$15,000

Step 3: Determine other additional costs

Costs=loss=-$5,000

Step 4: Determine the net gain/loss

net gain/loss=-20,000+(15,000)+(-5,000)=-$10,000

The adjusted basis in the land after the exchange=-$10,000, meaning Baker realized a loss of $10,000 from the exchange

8 0

3 years ago