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3 years ago

True or false: Without knowing the future, it is best to have a cost structure with high variable costs.

Business

1 answer:

konstantin123 [22]3 years ago

7 0

Answer:False

Explanation:It is not obvious which cost structure is better, both have advantages and disadvantages

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In an output contract, the seller can operate a factory on a 24-hour-a-day schedule and can legally require that the buyer take

Len [333]

Answer:

yes

Explanation:

5 0

3 years ago

Given the following data: Average operating assets $ 504,000 Total liabilities $ 23,520 Sales $ 168,000 Contribution margin $ 85

kipiarov [429]

Answer:

Explanation:

According to the given situation, the solution of return on investment is shown below:-

Return on investment = (Net operating income ÷ Average operating assets) × 100

now, we will put the values into the above formula

= ($45,360 ÷ $504,000) × 100

= 0.09 × 100

= 9%

Therefore for computing the return on investment we simply applied the above formula.

7 0

3 years ago

Orders for clothing from a particular manufacturer for this year's Christmas shopping season must be placed in February. The cos

antoniya [11.8K]

Based on the concept of expected value, the units that the company should order to meet February demand is <u>57 units.</u>

<h3>What is expected value?</h3>

In mathematics under the probability distribution theory, the expected value is the weighted average of possible values of some random variables. The weights are based on the theoretical probabilities of the variables.

<h3>Data and Calculations:</h3>

Cost per unit = $20

Selling price per unit = $50

<h3>Projected Demand</h3>

Demand Units Probability Expected Demand Units

1. 50 units 40% 20 units (50 x 40%)

2. 60 units 50% 30 units (60 x 50%)

3. 70 units 10% 7 units (70 x 10%)

Total expected demand units = 57 units

Thus, the expected demand in February is <u>57 units</u>.

Learn more about calculating expected values at brainly.com/question/10675141

8 0

3 years ago

Smith Company reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,0

Hoochie [10]

Answer:

$10,200

Explanation:

The computation of the deferred income tax expense or benefit is shown below:

Favorable temporary difference = $50,000

Less: Unfavorable temporary difference -$20,000

Net favorable temporary difference $30,000

We assume the tax rate is of 34%

So, the deferred tax expense is

= $30,000 × 34%

= $10,200

By finding out the net favorable temporary difference and then multiplied with the tax rate we can get the deferred tax expense and the same is shown above

3 0

3 years ago

In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20

alekssr [168]

Answer:

Entry to record adjustment:

COGS Dr $9.4m

Inventory Cr $9.4m

Explanation:

The question relates to a change in accounting policy. According to IAS 8 (changes in accounting policy and estimate), a change in accounting policy is to be reflected retrospectively and prospectively, which means any changes should be implemented by bringing changes in the past records. Since CPS company has been using FIFO method, the inventory has been overstated in the financial statements. A shift to AVCO has resulted in a decrease in inventory value.

The value of inventory has to be reduced as a result of change in accounting policy (i.e $38m - $28.6m). This is the closing inventory so a reduction in the value of closing inventory results in an increase in cost of goods sold (COGS), therefore, the adjusting entry will be aimed at reducing inventory and increasing cost of goods sold, see as follows:

Entry:

COGS Dr $9.4m

Inventory Cr $9.4m

8 0

3 years ago