0
What else can I help you with?
What costs are inventoriable under GAAP for service organisation merchandising businesses and manufacturing businesses?
service - none merchandising - freight costs, closing inventory manufacturing - direct material, direct labor, freight cost, manufacturing overhead
What are example of variable expenses?
Variable costs are costs that increase in total as output increases. For example, total labor costs increase per each hour worked; total direct materials costs increase per unit produced, etc.
What factors help reduce costs as volume increases?
buyer has placed an order with a supplier for 100 pieces at a per-unit price of $281 and has collected the following cost data: Material $100 Direct labor $50 (5 hours at $10 per hour) Overhead $75 (150% of direct labor) Total costs $225 Profit (25%) $56 Total per unit $281 The buyer now wants to place an order for an additional 700 pieces.
Why would reclassifying period costs as product costs increase this period's reported earnings?
You will increase the period's earnings because as a product costs, they may not be reported in the same period. Changing period costs to product costs improves how a company looks on paper, but does nothing for their actual financial position.
How would an increase in fixed cost affect average total cost?
An increase in fixed costs raises the total costs of production but does not affect variable costs. Since average total cost (ATC) is calculated by dividing total costs by the quantity of output, an increase in fixed costs will lead to a higher ATC, especially if output remains constant. This effect is more pronounced when production levels are low, as fixed costs are spread over fewer units. Conversely, as output increases, the impact on ATC diminishes since the fixed costs are distributed over a larger number of units.
Are the inventoriable costs applicable to manufacturing and merchandising companies applicable to service companies?
1. An example of an inventoriable cost would be: a) Shipping fees b) Advertising flyers c) Sales commissions d) Direct materials
What costs are inventoriable under GAAP for service organisation merchandising businesses and manufacturing businesses?
service - none merchandising - freight costs, closing inventory manufacturing - direct material, direct labor, freight cost, manufacturing overhead
How can escrow increase in a real estate transaction?
Escrow can increase in a real estate transaction when additional funds are required to cover unexpected costs or when the buyer requests more time to complete the purchase.
Which of the following situations would the price of a good be most likely to increase?
An increase in production costs results from a rise in wages.
If average cost increases does marginal cost increase?
It depends if the increase in Average Cost is caused by an increase in Fixed Costs or an increase in Variable Costs. An increase in Fixed Costs will not increase MC, because FCs do not vary with output (by definition) And increase in Variable Costs will increase MC
Does the seller to pay closing cost?
Generally the buyer pays closing costs. Some closing costs legally MUST be paid by the buyer. However, the seller could offer to pay some costs if they want to, or the buyer could ask the seller to pay some of the closing costs. Ultimately the seller has to decide how badly they want to make the sale.
In a freemarket system producers are motivated to reduce costs and increase revenues because of which of the following?
Profit Motive
Prove that profit maximizing firm will always minimise?
Profit is equal to total revenue minus total costs, if a firm wants to maximize its profit it has to lower the cost of producing a given level of output and or increase the item price if there is a willing buyer. If a firm is not minimizing costs then there exists a way for the firm to increase profits.
What is a buyer's premium?
A buyer's premium is a bonus paid by a buyer in addition to normal payments or cost, usually made to an auctioneer or merchandise club to cover administrative costs.
What is a Buyer's Premium?
A buyer's premium is a bonus paid by a buyer in addition to normal payments or cost, usually made to an auctioneer or merchandise club to cover administrative costs.
What is 'concession' in real estate?
Seller concessions are buyer costs that the seller is willing to pay on behalf of the buyer like closing costs, points, house payments, etc. Also these could be extras they are willing to throw in for free like building the buyer a fence or providing window treatments.
How much does the e buyer cost?
It is unknown how much the e buyer costs. There is no average and it would most likely depend on your personal situation.
