BUSINESS COLLEGE

Assume a certain firm regards the number of workers it employs as variable but regards the size of its factory as fixed. This assumption is often realistic a. in the short run but not in the long run. b. in the long run but not in the short run. c. both in the short run and in the long run. d. neither in the short run nor in the long run.

Answers

Answer 1
Answer:

Answer: a. in the short run but not in the long run

Explanation:

The Short Run is usually considered in Economics/ Business as a point in time where at least ONE factor of production is FIXED. This factor is usually the Factory because it is hard to change the capacity of a Factory in the Short run. For instance a wing might need to be constructed. Labour on the other hand is considered variable in the Short run though because more people can be hired and the people already hired can put in more overtime.

The Long Run is classified as a point where EVERY factor of production is Variable. There is enough time to even change the capacity of a Factory. So here even Factory is Variable.

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Answers

Answer: The correct answer is "C. Not recoverability test but fair value test".

Explanation: The impairment test to be used is Not recoverability test but fair value test. To determine whether intangibles of indefinite life have deteriorated and must present another value in their balance sheet, they must implement the fair value test.

Nombre Company management predicts $1,764,000 of variable costs, $2,364,000 of fixed costs, and a pretax income of $282,000 in the next period. Management also predicts that the contribution margin per unit will be $63. (1) Compute the total expected dollar sales for next period.
Contribution margin
Pretax income
(2) Compute the number of units expected to be sold next period.
Choose Numerator: / Choose Denominator: = Units
/ = Units

Answers

Answer and Explanation:

1. The computation of the total expected dollar sales for next period is given below:

Sales $4,410,000

Less: variable cost $1,764,000

Contribution margin $2,646,000

Less: fixed cost $2,364,000

Pre tax income $282,000

2. The number of units that should be sold is

= $2,646,000 ÷ $63 per unit

= 42,000 units

In this way it should be calculated

Manufacturing companies normally have three types of inventory: Select one: a. Economy, standard, and deluxe. b. Direct materials, direct labor, and manufacturing overhead. c. Raw materials, work in process, and finished goods. d. Work in process, finished goods, and returned merchandise.

Answers

Answer:

C. Raw materials, work in process, and finished goods.

Explanation:

Inventories are materials which have monetary value, and are assets to a company. An inventory can in the form of RAW MATERIALS (inventories which has not be used or converted in the production process), A WORK IN PROGRESS (materials which are within the production or conversion process, they have been partially transformed but not yet completed) and the FINISHED PRODUCTS ALSO CALLED FINISHED GOODS(materials which has undergone complete Transformation and are ready to be sold to the market).

A cost that remains unchanged in total despite variations in volume of activity within a relevant range is a: Multiple Choice Fixed cost. Curvilinear cost. Variable cost. Step-wise variable cost. Standard cost.

Answers

Answer:

The answer is Fixed cost.

Fixed cost remains constant for a given period and does other change with the eh level of production. However, the per unit fixed cost decreases when the Level of production increases and vice versa.

Also, fixed cost is difficult to.control and manage relatively to the variable.costs.

Explanation:

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Answers

Answer:

E. as current assets

Explanation:

As we know that the

Balance sheet records the total assets, total liabilities and the stockholder equity

Where

The total assets comprises of current assets, tangible assets, and the intangible assets

And, the total liabilities comprises of current liabilities and the long term liabilities

In the given scenario, the purchase of the newest Dorothy Cannell book be listed on the store's balance sheet. So here, the newest Dorothy Cannel book represent the current asset side of the balance sheet

Donkey-Kong Corporation manufactured 30,000 ice chests during August. The overhead cost-allocation base was $12 per machine-hour. The following variable overhead data pertain to September: Budgeted Actual
Production 30,000 units 24,000 units
Machine-hours 15,000 hours 10,800 hours
Variable overhead cost per machine-hour: $12.00 $11.25

What is the variable overhead efficiency variance?

a. 51890 favorable
b. $34,830 unfavorable
c. $36.720 unfavorable
e. 512.240 unfavorable

Answers

Answer:

Variable overhead efficiency variance= $14,400 favorable

Explanation:

Giving the following information:

Budgeted Actual

Production 30,000 units 24,000 units

Machine-hours 15,000 hours 10,800 hours

Variable overhead cost per machine-hour: $12.00 $11.25

To calculate the variable overhead efficiency variance, we need to use the following formula:

Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate

Variable overhead efficiency variance= (12,000 - 10,800)*12

Variable overhead efficiency variance= $14,400 favorable
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