Answer:
Companies that use ABC allocate all costs including direct materials, direct labour and manufacturing overhead to the product based on an activity cost allocation rate.
This statement is False.
Explanation:
In ABC, it is only the overhead that will be allocated to the product based on an activity cost allocation rate (cost drivers). Direct material cost and direct labour cost will be recorded at the actual cost incurred on direct material and direct labour.
(B) lower than it was in short-run equilibrium but higher than it was originally (before aggregate demand increased).
(C) lower than it was originally (before aggregate demand increased).
(D) equal to what it was originally (before aggregate demand increased).
Answer:
The answer is (A) higher than it was in short-run equilibrium.
Explanation:
Answer:
9.50 times
Explanation:
The computation of the accounts payable turnover ratio is shown below:
= Total purchase ÷ average accounts payable
where,
Average accounts payable = (Opening balance of Accounts payable + ending balance of Accounts payable) ÷ 2
= ($48,000 + $40,000) ÷ 2
= $44,000
And, the total purchase is $418,000
Now put these values to the above formula
So, the answer would be equal to
= $418,000 ÷ $44,000
= 9.50 times
Calculating CLV is most helpful for Assessing the viability of any pricing strategy.
The correct option is B
What is customer lifetime value?
The total amount of money a client is anticipated to spend with your company or on your products over the course of an average business relationship is known as customer lifetime value.
If you can reach a CLV that is between three and five times your cost per new customer, it is a good range. Therefore, you should strive for a CLV of at least $450 if you are investing an average of $150 in acquiring a new customer.
The formula for customer lifetime value is: CLV = Average Transaction Size x Number of Transactions x Retention Period.
To learn more about customer lifetime value, visit:
#SPJ4
I understand that the question you are looking for is:
Calculating CLV is most helpful for which of the following?
(A) Opening a new retail location
(B) Assessing the viability of any pricing strategy
(C) Estimating demand for a product
(D) Calculating research investment for a new product
Answer:
Cyclical Unemployment
Explanation:
Cyclical Unemployment occurs due to irregularities surrounding an economy and these said cycles eventually brings about recession and thus, a good number of willing workers would not be able to get jobs due to this fact. What Joseph is experiencing is called Cyclical unemployment.
Labor 1.5 hours @ $15.00 per hour
1. What was Glass Vessel’s flexible budget variance for materials in March? (As part of your answer, please indicate whether this variance was favorable or unfavorable.)
2. What was Glass Vessel’s labor efficiency/usage variance for March? (As part of your answer, indicate whether this variance was favorable or unfavorable.)
Must show work
Answer:
(i) -62.5 (Unfavorable)
(ii) -450 (Unfavorable).
Explanation:
(1) Material variance:
Material cost variance is the difference between standard cost for actual output produced and the actual cost of materials.
Material cost variance = (SQ × SP) – (AQ × AP)
Where SQ = Standard quantity for actual output, AQ = Actual quantity, SP = Standard Price and AP = Actual price.
This material cost variance can be subdivided into material price variance and material usage variance.
Material price variance = AQ × (SP – AP)
Material usage variance = SP (SQ - AQ)
In the problem, it is given that materials 2 pounds @ 1.25 per pound.
Therefore, SP = $1.25 and SQ per unit = 2 pounds.
It is given that Glass vessel produced 300 vases using 650 pounds of material.
Therefore, AQ = 650 pounds and actual output = 300 vases.
Therefore SQ for actual output:
= (SQ per unit) × (Actual output)
= (2 pounds) × (300 vases)
= 600 pounds.
It is given that Glass vessel purchased 650 pounds of material for $845.
Therefore Actual price = $845 ÷ 650 pounds
= $ 1.3
SP = $1.25 and AP = $1.3
SQ = 600 pounds and AQ = 650 pounds.
Material cost variance = (SQ × SP) – (AQ × AP)
Material price variance = AQ × (SP – AP)
Material usage variance = SP × (SQ-AQ)
Material cost variance (MCV):
= (600 × 1.25) – (650 × 1.3)
= -95 (Unfavorable)
Material price variance (MPV):
= 650 × (1.25 – 1.3)
= -32.5 (Unfavorable)
Material usage variance (MUV):
= 1.25 (600-650)
= -62.5 (Unfavorable)
Verification:
MCV = MPV + MUV
= (-32.5) + (-62.5)
= -95.
(2) Labor variances:
Labor cost variance is the difference between standard labor cost and the actual cost.
Labor cost variance = (SH × SR) – (AH × AR)
Where SH = Standard hours for actual output, AH = Actual hours, SR = Standard rate and AR = Actual rate.
Labor cost variance can be subdivided into Labor rate variance and Labor efficiency variance.
Labor rate variance = AH × (SR-AR)
Labor efficiency variance = SR × (SH – AH)
It is given that Labor 1.5 hours @ $15 per hour is the standard.
Therefore, SR = $15 and SH per unit = 1.5 hours.
SH for actual output = SH per unit × actual output
= 1.5 × 300
= 450 hours.
It is given that the actual total labor costs for March were $7200, which entailed 480 hours of labor.
Therefore, AH = 480 hours.
AR = Labor cost ÷ labor hours
= 7,200 ÷ 480
= $15.
SH = 450 hours, AH = 480 hours, SR = $15 and AR = $15.
Here, standard rate and actual rate are same. Therefore the labor rate variance is NIL. So the entire labor variance will come under labor efficiency variance.
Labor cost variance = (SH × SR) – (AH × AR)
Labor rate variance = AH × (SR-AR)
Labor efficiency variance = SR × (SH – AH)
Labor cost variance = (450 × 15) – (480 × 15)
= -450 (Unfavorable)
Labor rate variance = 480 × (15-15)
= 0
Labor efficiency variance = 15 × (450 - 480)
= -450 (Unfavorable).
Answer:
Well, it depends on the product. But, I'd say, first, an idea for the product. Creating/designing and refining the product is next. Then, when finally satisfied, begin mass production
Explanation: