a retailer acquires merchandise for resale. how would this be recorded in a perpetual inventory system?

When switching from a traditional costing system to an activity-based costing system that contains some batch-level costs: Multi

Naddika [18.5K]

Answer:

Option D- The unit product costs of high volume products typically decrease and the unit product costs of low volume products typically increase.

Explanation:

The reason is that the company has batch level costs which are fixed indirect costs that are to be assigned to the product and are fixed amounts say $100. Also assume that there are two type of units, Unit A and B. Suppose that the batch cost any number of units of A produced will remain the same and similarly for product B. This means if the units produced of A are at 20 unit per batch and product B produced are 10 units per batch then Activity Based Costing says that the unit cost of batch cost absorbed in Product A would be $5 ($100 / 20) and that for product B would be $10 ($100 / 10). So this example better explains cost behavior of batch cost which is fixed for different levels of production.

This means the fixed cost per unit which decreases with increase in production will keep decreasing if the number of units produced starts increasing. In other words, the similar class of units if are produced in higher quantity then the cost per unit will be decreased due to decrease in fixed cost per unit and vice versa.

3 0

3 years ago

Luna Manufacturing uses a process costing-system. Luna uses the weighted average method . The following information pertains to

Goshia [24]

Answer:

conversion cost per equivalent unit: 10.47

Explanation:

Luna uses the weighted average method:

complete units + equivalent units ending WIP

Completed during the period 187,000

ending WIP 197,000 x 30% =<u> 59,100‬ </u>

Equivalent units 246,100‬

cost: beginning invenotry + added during the period

165,600 + 2,410,800 = 2,576,400‬

cost per equivalent unit: cost / equivalent untis

2,576,400 / 246,100 = 10,4689 = 10.47

3 0

3 years ago

Jack, Jamie, Ronnie, and Stephan own the only computer software manufacturing companies in the country. When Jack increases the

Likurg_2 [28]

Answer: Perfect Competition

Explanation:

This is a situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent.

6 0

3 years ago

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The statement reflecting changes in permanently restricted, temporarily restricted and unrestricted net assets for a private sec

ki77a [65]

Answer:

Statement of Net Assets or statement of financial position.

Explanation:

Statement of net assets shows the permanently restricted, temporarily restricted, and unrestricted funds. This is represented into he equity section.

A template for the creation of statement of financial position is provided by the IRS form 990.

Unrestricted assets are donations to the organisation that can be used for general expenses.

Temporarily restricted assets are set aside for a particular project by donors

Permanently restricted assets are those that are invested in perpetuity, and the revenue earned is used for a specific purpose.

3 0

3 years ago

Which is the best way to prepare yourself for a job in the sports industry

Nataliya [291]

Are there any answer options? I know the answer if you have options

8 0

3 years ago

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