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3 years ago

Discuss the difference between the income statement of Variable and absorption costing.

1 answer:

7 0

Absorption costing includes all of the direct costs associated with manufacturing a product, while variable costing can exclude some direct fixed costs. ... Variable costing includes all of the variable direct costs in COGS but excludes direct, fixed overhead costs.

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As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because t

Allisa [31]

Answer: diminishing marginal product

Explanation:

A. When a firm in the market increase its level of production it results in reduction of cost which is called economies of scale.

B. Increase in cost that resulted due to unnecessary increase in level of production is called diseconomies of scale.

C. Increasing marginal product can be defined as the increase in output resulting due to employment of one more unit of input such as labor.

D. Diminishing marginal product can be defined as the decrease in output resulting due to employment of one more unit of input such as labor.

From the above explanation we can conclude that right answer is diminishing marginal product .

4 0

3 years ago

An important assumption that is made when constructing a supply schedule is only price and quantity matter in determining supply

sergey [27]

Answer:

only price and quantity matter in determining supply

all other determinants of supply are held constant

Explanation:

At the time of constructing the supply schedule, only price and quantity should be considered and other factors should remain the same because the factors that impacts the supply other than the price so it shifted the supply curve but when only the price changed so there should be the movement also law of supply represent the direct relationship between tfhe price and the supply

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3 years ago

Angelo was all set to start his new business. Although he did not have as much cash as he would have liked, he figured that once

Mrrafil [7]

Answer:

The answer is undercapitalization

Explanation:

It is evident that the business is undercapitalized. Undercapitalization is a situation when a company/firm does not have enough or the needed funds to run the business operations or pay his creditors.

Angelo is undercapitalized because her sales are not generating the needed cash flows coupled with her inadequate capital. So she needs to raise enough capital or develop new strategy to increase her sales.

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3 years ago

When computing the present discounted value (pdv) of a future stream of labor income, an increase in the interest rate will redu

JulijaS [17]

For a given period of time, as the discount rate increases, the present value factor decreases.

<h3>What is discounted present value?</h3><h3>Discount Rate for Finding Present Value</h3>

The discount rate is the investment rate of return that is applied to the present value calculation.

In other words, the discount rate would be the forgone rate of return if an investor chose to accept an amount in the future versus the same amount today.

<h3>Why present value is important?</h3>

Present value is important because it allows investors to compare values over time.

PV can help investors assess future financial benefits of current assets or liabilities.

Used in areas like financial modeling, stock valuation, and bond pricing, based on its future returns, investors can calculate present value.

Learn more about present value here:

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7 0

2 years ago

Marlon had $22,000 of taxable income in 2018. Based on the table, how much federal income tax will Marlon owe in 2018?

bazaltina [42]

Answer:

The federal tax income that Marlon will owe in 2018 is $2,449.5

Explanation:

Based on the effective tax rate, we have;

Marginal Tax Rates,

10% on the first $9,525 of income

12% on taxable income over $9,525 to $38,700

22% on taxable income over $38,700 to $82,500

Therefore, we have;

The tax amount for the first $9,525 of income = 0.1×$9,525 = $952.5

The 12% on taxable income over $9,525 to $38,700 is given as follows;

$22,000 - $9,525 = $12,475

The tax amount for the taxable income over $9,525 to $38,700 is therefore;

Tax amount = 0.12 × $12,475 = $1,497

The total tax is therefore;

$1,497 + $952.5 = $2,449.5

The federal tax income that Marlon owe in 2018 = $2,449.5.

5 0

3 years ago