Answer:
Statement b. is True
Explanation:
When using variable costing method, all the costs which are variable in nature is charged based on per unit basis and is not periodic in nature, as depends o quantum of production and sales.
While considering fixed cost, it is considered periodic in nature as this does not depend on quantum of production or quantum of sales, as this is fixed in terms for a period it is periodic in nature, and is treated unavoidable even at a level where no units are produced.
Thus, Statement b. is True.
The tendency is easily explained. As price goes up, the quantity that consumers demand goes down. This is a common correlation between the price of goods and the willingness of the customers to buy products. All businesses today have to build demand in order to know how much do the customers want in order for them to increase their purchase ability.
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Answer:
$28,065
Explanation:
The moving averages method uses the means of the previous months as the forecast for the next months.
The formula for the moving average is as below.
Moving Average = (n1 + n2 + n3 + ...) / n
In this case, the Moving average = $26,908 +$28,386 +$28,730, $27,290+ $29,009 / 5
= $140,323 /5
=$28,064.6
=$28,065
Answer:
Net profit
Explanation:
Net profit is the monetary reward business people get for engaging in business. Profits calculation is only possible after establishing all the revenues and expenses of a business.
Revenues are all the business income from its activities, while expenses are the costs incurred in business operations. When revenues exceed expenses, a business will realize profits.
