Answer: True
Explanation:
Variable selling and administrative expenses increase with the number of sales so in order to get them, one needs to multiply the number of sales by the variable and administrative expenses.
This also goes for the budgeted variable selling expenses. To find out these costs, multiply the expected variable and admin expenses by the budgeted number of sales. The amount you get will show the amount of variable expenses to budget based on the sales you budgeted.
One thing that a process cost system cannot be used for from the given options is Motion pictures.
<h3>What is process costing?</h3>
This is a method of allocating cost that is based on the same item being mass-produced such that there is no discernable difference between the goods that were produced.
Motion pictures cannot be mass produced which is why they cannot use process costing, Every motion picture is unique and so something more specific is needed to apportion their cost.
Find out more on process costing at brainly.com/question/17129908
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Answer:
The list is follows:
a. Inflation has been abound 2.5% for some time. Village Realtors is considering measuring its land values in inflation-adjusted amounts - Stable-monetary-unit assumption
b. You get an especially good buy on a laptop, paying only $ 300$300 when it normally costs $ 800. What is your accounting value for this laptop? - Historical cost principle
c. Burger King, the restaurant chain, sold a store location to McDonald. How can Burger King determine the sale price of the store long dash—by a professional appraisal, Burger King's original cost, or the amount actually received from the sale? - Historical cost principle
d. General Motors wants to determine which division of the company long dash—Chevrolet or Cadillac long dash—is more profitable - Entity assumption
Answer: 1. A.Both firms will choose the low price.
2. B. Both firms would choose the high price.
Explanation:
1. If the firms cannot cooperate with each other and must choose simultaneously, both firms will choose the low price.
This is because at the low price both of them are at the highest profit they can make when they are not cooperating. For instance, if Firm B chooses Low Price and Firm A chooses High Price, Firm A will make $3 million while Firm be will make $8 million.
If Firm B decides to have a high price then firm A will take the low price and make $8 million in profit while Firm B makes $4 million. If they are not working together, they will both have to take the low price to make the most profit.
2. If the firms could cooperate with each other, both firms would choose the high price.
The is because they will be making more than competing and getting a lower profit. Should they cooperate they will each get $7 million in profit because they will pick the option they can both make the highest profit at. The is better than competing and making only $5 and $6 million respectively.
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