Answer:
Fixed cost is the one which remains fixed and doesn't changes within a range of level of activity changes which includes Factory property taxes (doesn't changes with furniture manufacturing), accounting staff salaries (doesn't changes with furniture manufacturing), sales office rent (doesn't changes with furniture manufacturing), Sales manager salary and Depreciation on factory equipment.
On the other hand, the variable cost changes with the change in the level of activity and this includes fabric for seats (greater usage for greater amount of seats), assembly labor and sales commissions paid.
Period cost is the cost that is associated with the passage of time and increases with the passage of time and is not dependent on level of activity.
This includes Factory property taxes, accounting staff salaries, sales office rent, Sales manager salary and Depreciation on factory equipment.
Product cost is the cost that is associated with costs that are directly linked with manufacturing of the product. This includes all the variable overheads, specific fixed cost and variable costs. The examples include Fabric for seats and Assembly labor.
Options:
Semistructured decisions
Structured decisions
Strategic decisions
Unstructured decisions
Definition
Answer:Semistructured decisions
Explanation: Semistructured decisions are decisions that have elements of both structured and unstructured decisions, they are decisions that have some agreement on the data on the process, and or evaluation or analysis technique to be used. Semistructured decisions are also noted by efforts to retain some degree of human judgment in the decision making process.
MOST DECISION SUPPORT SYSTEMS ARE CLASSED AS SEMISTRUCTURED DECISIONS.
Answer: The correct answer is "D) Because investment objectives deal with the future, it is useless to plan more than five years in the future.".
Explanation: The statement "D) Because investment objectives deal with the future, it is useless to plan more than five years in the future." is NOT TRUE because through a correct analysis of the variables and a good amount of quality information it is possible to plan more than 5 years in the future and obtain good results.
Answer:
the break even point is 300 cards sold
Explanation:
The computation of the break even point in units is shown below:
= Fixed cost incurred ÷ contribution margin per unit
= $300 ÷ ($2 - $1)
= $300 ÷ ($1)
= 300 cards sold
As we know that the contribution margin per unit is
= Selling price per unit - variable cost per unit
And, the same is to be followed
Hence, the break even point is 300 cards sold
Answer:
The budgeted required production for August is 11940 units and option B is the correct answer.
Explanation:
The opening inventory in August will be 20% of the August's sales in units.
Thus, the opening inventory for August = 0.2 * 11600 = 2320 units
The Production in August should be enough to meet the desired closing inventory for August and the remaining sales requirements for August after selling off the beginning Inventory for August.
The desired closing inventory in August is equal to 20% of September's sales requirements.
Desired Closing Inventory - August = 13300 * 0.2 = 2660 units
Production in August = Desired Closing Inventory + Sales - Opening Inventory
Production in August = 2660 + 11600 - 2320 = 11940 units