what are the characteristics of effective communication​

Answers

Answer 1

Answer:

Clear—main ideas easily identified and understood.

Concise—gets to the point without using unneeded words or images.

Concrete—includes specific examples or explanations.

Correct—in information, word choice, and grammar.

Coherent—information presented in a logical sequence.

Completeness. Effective communications are complete, i.e. the receiver gets all the information he needs to process the message and take action. ...

Conciseness. Conciseness is about keeping your message to a point. ...

Consideration. ...

Concreteness. ...

Courtesy. ...

Clearness. ...

Correctness.

Explanation:

Hope this helps.


Related Questions

Which of the following best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production?
a. Debit Work in Process, debit Manufacturing Overhead, and credit Raw Materials.
b. Debit Work in Process and credit Raw Materials.
c. Debit Manufacturing Overhead and credit Raw Materials.
d. Debit Work in Process, debit Manufacturing Overhead, and credit Direct Materials.

Answers

D. Debit work in process debit manufacturing overhead …..

Debit Work in Process, debit Manufacturing Overhead, and credit Direct Materials best describes the journal entry to record the withdrawal of raw materials from the storeroom for use as direct and indirect materials in production. Thus option d is the correct option

What is a journal entry?

A Journal entry can be defined as an accounting record in which the transaction is being made. Every transaction has two reactions, and all of these are accounted for with the help of a journal entry. About which a person can make a journal and a ledger, a balance sheet, and a profit and loss account.

Debit work in progress or any time of credit material describes the journal entry as the raw material is a part of inventory either taken with the help of debit or credit that is paid in cash, or sometimes it is through check or Bank. Therefore option d is the correct option

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On-Time Delivery Company acquired an adjacent lot to construct a new warehouse, paying $31,000 in cash and giving a short-term note for $278,000. Legal fees paid were $2,220, delinquent taxes assumed were $15,700, and fees paid to remove an old building from the land were $20,800. Materials salvaged from the demolition of the building were sold for $4,600. A contractor was paid $939,400 to construct a new warehouse. Determine the cost of the land to be reported on the balance sheet.

Answers

Answer:

the cost of the land that should be reported on the balance sheet is $343,120

Explanation:

The calculation of the cost of the land that should be reported on the balance sheet is given below:

= cash payment + Short term note payable + legal fees paid + delinquent taxes + fees paid for removing out the old building - salvage value

= $31,000 + $278,000 + $2,220 + $15,700 + $20,800 - $4,600

= $343,120

hence, the cost of the land that should be reported on the balance sheet is $343,120

Which section under Dispute Resolution in a CAR Buyer Representation Agreement states that a buyer and broker agree to mediate any dispute or claim arising before using court action or arbitration?

Answers

The answer to the question is Section 22A of Residential Purchase Agreement.

Dispute Resolution refers to the process by which the conflicts that takes place between two or more parties can be resolved.

Dispute Resolution can be done through negotiation, mediation, arbitration, e.t.c. C.A.R.

It should be noted that the buyer Representation Agreement refers to the document that indicates the terms and the conditions of an agreement that takes place between a buyer and the broker.

Lastly, the section that states that a buyer and broker agree to mediate any dispute or claim arising before using court action or arbitration is Section 22A of the Residential Purchase Agreement under the C.A.R. Buyer Representation Agreement.

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Morales Corporation produces microwave ovens. The following per unit cost information is available: direct materials $30, direct labor $20, variable manufacturing overhead $16, fixed manufacturing overhead $42, variable selling and administrative expenses $18, and fixed selling and administrative expenses $24. Its desired ROI per unit is $27.00. Compute its markup percentage using a total-cost approach. (Round answer to 2 decimal places, e.g. 10.50%.)

Answers

Answer:

111%

Explanation:

Computation to determine its markup percentage using a total-cost approach

First step

Variable cost per unit= Direct materials+Direct labor+Variable manufacturing overhead+Variable selling and administrative expenses

Variable cost per unit= $30+20+16+18

Variable cost per unit= $84

Second step

Fixed cost per unit= Fixed manufacturing overhead+Fixed selling and administrative expenses

Fixed cost per unit= $42+24

Fixed cost per unit= $66

Now let determine the Variable costing markup percentage

Variable costing markup percentage= (Desired ROI+Fixed cost per unit)*100/Variable cost per unit

Variable costing markup percentage= ($27+66)*100/84

Variable costing markup percentage=110.7 %

Variable costing markup percentage=111% (Approximately)

Therefore its markup percentage using a total-cost approach is 111%

Altex Inc. manufactures two products: car wheels and truck wheels. To determine the amount of overhead to assign to each product line, the controller, Robert Hermann, has developed the following information.

Car Truck
Estimated wheels produced 40,000 10,000
Direct labor hours per wheel 1 3

Total estimated overhead costs for the two product lines are $770,000.

Required:
a. Calculate overhead rate.
b. Compute the overhead cost assigned to the car wheels and truck wheels, assuming that direct labor hours is used to allocate overhead costs.

Answers

A) Direct labor hrs for car wheels = estimated wheels *direct labor per wheel  

40,000 *1hr = 40,000      

   

Direct labor hrs for Truck      

10,000 * 3hr= 30,000      

   

total direct labor hrs 40,000+30,000 = 70,000  hrs

Overhead rate is total est oh cost/ total direct labor hrs    

770,000/70,000= 11.00    

B) Car truck wheels 40,000*11 =440,000

Truck wheels 10,000*11=110,000

During its most recent fiscal year, Raphael Enterprises sold 270,000 electric screwdrivers at a price of $17.10 each. Fixed costs amounted to $729,000 and pretax income was $999,000. What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question

Answers

Answer:

$2,889,000

Explanation:

Sales units = 270,000 units

Sale Price = $17.10

Fixed cost = $729,000

Sales Value = 270,000 * $17.10

Sales Value = $4,617,000

Contribution Margin = Sales- Fixed cost

Contribution Margin = $4,617,000 - $729,000

Contribution Margin = $3,888,000

Variable Cost = Contribution margin- Pretax income

Variable Cost = $3,888,000 - $999,000

Variable Cost = $2,889,000

So, $2,889,000 is the amount that should have been reported as variable costs in the company's contribution margin income statement for the year in question.

When looking to advertise a new business online, what is one of the major benefits of display ads?

Answers

When looking to advertise a new business online, what is one of the major benefits of display ads?
They are seen by everyone.
They have higher click-through rate.
They can come in many different formats.
They don't cost too much to set up.

The Economic Order Quantity is when: holding costs equal ordering costs total costs are minimized the product cost is not considered to determine the quantity to be purchased all of the above none of the above

Answers

Answer:  all of the above

Explanation:

At the Economic Order Quantity level, the company is enjoying the lowest cost possible in relation to product ordering and storage because they are ordering just enough quantities that they are able to sell them just in time to order some new goods.

For this to happen, the holding cost must be equal to the ordering costs. At the EOQ, the product cost is irrelevant when the quantity to be bought is to be determined because it is minimized.

Dragon Sports Inc. manufactures and sells two products, baseball bats and baseball gloves. The fixed costs are $448,000, and the sales mix is 40% bats and 60% gloves. The unit selling price and the unit variable cost for each product are as follows: Products Unit Selling Price Unit Variable Cost Bats $40 $30 Gloves 100 60 a. Compute the break-even sales (units) for both products combined. fill in the blank 1 units b. How many units of each product, baseball bats and baseball gloves, would be sold at break-even point? Baseball bats fill in the blank 2 units Baseball gloves fill in the blank 3 units

Answers

Answer: a)the break-even sales (units) for both products combined= 16,000 units

b)break-even point for Baseball bats= 6, 400units

break-even point for Baseball gloves= 9,600units

Explanation:

a. Break-even sales (units) is given as:-

Contribution margin=Sales - Variable costs

Contribution margin for Bats = $40 - $30

= $10

Contribution margin for Gloves = $100 - $60

= $40

Weighted average Contribution margin = ($10 × 40%) + ($40 × 60%)

= $4+ $24

= $28

Break-even = Fixed cost ÷ Contribution margin

= $448,000 ÷ $28

= 16,000 units

b. The computation of units of each product is shown below:-

Baseball bats =  16,000 units × 40%= 6, 400units

Baseball gloves = 16,000units × 60%=9,600units

At December 31, Amy Jo's Appliances had account balances in Accounts Receivable of $308,000 and in Allowance for Uncollectible Accounts of $910 (credit) before any adjustments. An analysis of Amy Jo's December 31 accounts receivable suggests that the allowance for uncollectible accounts should be 4% of accounts receivable. Bad debt expense for the year should be: Multiple Choice $13,230. $12,320. $11,410. $11,911.

Answers

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Miscavage Corporation has two divisions: the Beta Division and the Alpha Division. The Beta Division has sales of $300,000, variable expenses of $152,100, and traceable fixed expenses of $70,300. The Alpha Division has sales of $610,000, variable expenses of $335,800, and traceable fixed expenses of $131,900. The total amount of common fixed expenses not traceable to the individual divisions is $133,200. What is the company's net operating income

Answers

Answer: $86700

Explanation:

The net operating income is used in knowing the profitability of an investment. The net operating income is gotten by subtracting the expenses from the revenue.

Based on the information given in the question, the net operating income is $86700. Kindly check the attachment for further details.

Rachel is preparing to open her own raft rental business, cleverly named Rachel's Rafts. She figures out that her fixed costs will be $7,500 and her unit variable costs are $2 per raft. She plans to rent all 2,500 rafts she has on hand. What is Rachel's breakeven price

Answers

Answer:

selling price= $5

Explanation:

Giving the following information:

Fixed cost= $7,500

Unitary variable cost= $2

Break-even point= 2,500 units

The break-even point is the number of units to sell to cover the fixed costs. At this level, net income is zero.

So given the costs structure and 2,500 units to sell, the selling price that provides the break-even point is:

Break-even point in units= fixed costs/ (selling price - unitary variable cost)

2,500 = 7,500 / (selling price - 2)

2,500selling price - 5,000 = 7,500

2,500selling price = 12,500

selling price = 12,500 / 2,500

selling price= $5

San Antonio Chair Inc. has direct labor cost standard of $14 per direct labor hour and an efficiency standard of 6 hours per chair. The actual results for the period when 30 chairs were built were 130 direct labor hours at an actual cost of $1,560. What is the direct labor cost variance

Answers

Answer:

Total direct labor variance= $960 favorable

Explanation:

Giving the following information:

We will separate the direct labor cost variance in rate and quantity variance. To calculate the direct labor rate and quantity variance, we need to use the following formulas:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Direct labor time (efficiency) variance= (30*6 - 130)*14

Direct labor time (efficiency) variance= $700 favorable

Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity

Direct labor rate variance= (14 - 12)*130

Direct labor rate variance= $260 favorable

Actual rate= 1,560/130= $12

Total direct labor variance= 700 + 260

Total direct labor variance= $960 favorable

When comparing the results of using the direct, sequential, and reciprocal services methods of allocating support department costs to production departments, which of the following statements is true for a manufacturing company that has a total of $1,500,000 in support costs to allocate?
a.The reciprocal services method allocates more than $1,500,000 to the production departments.
b.The reciprocal services method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the direct method.
c.The direct method yields the most accurate allocation of the $1,500,000.
d.The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method.

Answers

Answer: d. The sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method

Explanation:

For a a manufacturing company that has a total of $1,500,000 in support costs to allocate, it should be noted that the sequential method can be viewed as a compromise on accuracy and difficulty in allocating the $1,500,000 because it considers some, though not all, inter-support-department services and is easier to compute than the reciprocal services method

A(n) _____________ activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business. Multiple choice question. operating financing noncash investing

Answers

An operating activity includes those transactions and events that determine net income, including the purchase of merchandise, the sale of goods and services to customers, and expenditures to operate the business.

A business operates through certain actions that manage and keep the business alive. Such operating activities may include more than a couple of processes that help the business stay afloat.

The operating activities of a business include all the things that a company does to provide an ongoing flow of products and services to the market. Such activities may include setting a strategy, keeping accounts of the transactions like purchasing of merchandise, the sale of goods and services to customers, and the expenditures incurred to operate the business. Operating activities are important as they control the cash flow of the business and maybe the sole source of ensuring the business stays alive. It is directly linked to the deep-end workings of the company, like the production, sale, distribution, etc. of the company.

Thus, operating activities such as the determination of the incomes, purchase of merchandise, sale of goods and services, etc. all play a huge part in the successful running of the company. It's actions such as these that determine the success or failure of the company.

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he next dividend payment by Savitz, Inc., will be $5.05 per share. The dividends are anticipated to maintain a growth rate of 5 percent forever. If the stock currently sells for $43 per share, what is the required return

Answers

Answer:

16.74%

Explanation:

Current Price = Expected Dividend / (Required Return - Growth Rate)

Required Return = (Expected Dividend / Current Price) + Growth rate

Required Return = ($5.05 / $43) + 5%

Required Return = 0.1174419 + 0.05

Required Return = 0.1674419

Required Return = 16.74%

Its investment bankers have told Donner Corporation that it can issue a 25-year, 8.1% annual payment bond at par. They also stated that the company can sell an issue of annual payment preferred stock to corporate investors who are in the 40% tax bracket. The corporate investors require an after-tax return on the preferred that exceeds their after-tax return on the bonds by 1.0%, which would represent an after-tax risk premium. What coupon rate must be set on the preferred in order to issue it at par? (hint: a portion of dividends are tax-exempt for corporate investors).

Answers

The coupon rate must be set at 9.77%

The after-tax return on the bonds is:

= Annual payment rate * ( 1 - tax rate)

= 8.1% * ( 1 - 40%)

= 4.86%

The investors would like an after-tax return on preferred stock that is more than their bond return by 1% so they would like a preferred return of:

= 4.86% + 1%

= 5.86%

If the Preferred must be issued at par, its coupon rate must be equal its before-tax yield:

= After tax yield / ( 1 - tax rate)

= 5.86% / ( 1 - 40%)

= 9.77%

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Answer:

9.77 is the correct answer

i think this helps u

When marginal revenue equals marginal cost, the firm a. should increase the level of production to maximize its profit. b. may be minimizing its losses rather than maximizing its profit. c. must be generating positive economic profits. d. must be generating positive accounting profits.

Answers

When marginal revenue is equal to the marginal cost, then the firm should increase the level of production to maximize its profit.

Marginal revenue simply means the increase in revenue that a company makes as a result of selling an additional output of good. Marginal cost is the cost that a company incurs for production of one extra unit of good.

It should be noted that when the marginal cost if a firm is more than the marginal revenue, it means that the firm is producing too much.

When the marginal revenue of the firm equals the marginal cost, then the firm should maximize its profit.

The correct option is A.

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Is there any company or firm that doesn't use CRM?

May i know the name of that company? ​

Answers

Answer:

Choudhary group of company

Assuming a specific single project with normal cash flows and a cost of capital of 10%, which of the following statements will ALWAYS be true?

a. If NPV > 0 at the stated cost of capital (i.e., 10%), then NPV will also be > 0 at a cost of capital of 12%.
b. If NPV > 0, then Profitability Index > 0.
c. If NPV > 0, then Payback Period > 0.
d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).
e. If NPV > 0, then IRR > 0.

Answers

Answer:

b. If NPV > 0, then Profitability Index > 0.

c. If NPV > 0, then Payback Period > 0.

d. If NPV > 0, then a simple sum of the cash inflows of the project will always be greater than the cost of the project (i.e, the year 0 cash flow).

e. If NPV > 0, then IRR > 0

Explanation:

The net present value shows the net worth of the assets or the project at the discount rate or the cost of capital. In the case when the net present value comes in positive so the internal rate of return should be more than the cost of capital

Also the profitability index lies between -1 and +1 so if the net present value is positive so the profitability should be more than 1

Hence, b to e statements are correct

Name 2 of the 4 structures a business can have

Answers

Answer:

4 Types of Legal Structures for Business:

   Sole Proprietorship.    General Partnership.    Limited Liability Company (LLC)    Corporations (C-Corp and S-Corp)

Portman company operating at full capacity sold 1000000 units at a price of $188 per unit during the current year , it’s income statement is as follows

Answers

Answer:

Portman Company

1. The total variable costs and the total fixed costs for the current year are:

Total variable costs $88,000,000

Total fixed costs      $40,000,000

2. Determination of (a) the unit variable cost and (b) the unit contribution margin for the current year.

a) Unit variable cost               $88

b) Unit contribution margin   $100

3. The break-even sales (units) for the current year are:

= 400,000 units.

4. The break-even sales (units) under the proposed program for the following year are:

= 450,000 units.

5. The amount of sales (units) that would be necessary under the proposed program to realize the $60,000,000 of operating income that was earned in the current year is:

= 1,050,000,000 units.

6. The maximum operating income possible with the expanded plant is:

= $61,000,000.

7. If the proposal is accepted and sales remain at the current level, the operating income or loss be for the following year will be:

= $55,000,000.

8. Based on the data given (1 - 6), would you recommend accepting the proposal?

 

In favor of the proposal because of the possibility of increasing income from operations.

Explanation:

a) Data and Calculations:

Sales units = 1,000,000

Selling price = $188

                                                   Total

Sales                   $188,000,000

Cost of goods sold          (100,000,000)

Variable cost of goods sold = $70,000,000

Fixed cost of goods sold =      $30,000,000

Gross profit                      $88,000,000

Expenses:    

Selling expenses             $16,000,000

Variable selling expenses $12,000,000

Fixed selling expense = $4,000,000  

Administrative expenses  12,000,000

Variable administrative expenses = $6,000,000

Fixed administrative expenses = $6,000,000  

Total expenses               (28,000,000)

Operating income         $60,000,000

The division of costs between variable and fixed is as follows:

                     Variable      Fixed

Cost of goods sold          70% 30%  

Selling expenses                 75%         25%  

Administrative expenses 50%         50%  

                                                           Total           Unit Cost

Variable cost of goods sold =     $70,000,000      $70

Variable selling expenses             12,000,000         12

Variable administrative expenses 6,000,000          6

Total variable costs =                 $88,000,000      $88

Contribution margin = $100 ($188 - $88)

Fixed cost of goods sold =       $30,000,000

Fixed selling expense =                4,000,000  

Fixed administrative expenses = 6,000,000

Total fixed costs =                    $40,000,000

Break-even sales units = $40,000,000/$100 = 400,000 units

Proposal:

Sales revenue increase = $11,280,000

Fixed costs by $5,000,000 to $45,000,000 ($40 million + $5 million)

Sales units increase = 60,000 ($11,280,000/$188)

Break-even sales units = 450,000 ($45,000,000/$100)

Units to realize target profit of $60,000,000:

= ($45,000,000 + $60,000,000)/$100

= $105,000,000/$100

= 1,050,000,000 units

Profit with the expanded plan

= Total contribution - Fixed Costs

= $100 * 1,060,000 - $45,000,000

= $106,000,000 - $45,000,000

= $61,000,000

With sales at current level of 1,000,000 units

Sales revenue =      $188,000,000

Variable costs            88,000,000

Contribution           $100,000,000

Fixed costs                45,000,000

Operating income  $55,000,000

Economic life of equipment: 5 years. Implicit interest rate and lessee's incremental borrowing rate: 9% semiannually. Fair value of the computers at January 1, 2021: $23 million. What is the interest revenue that Technoid would report for this lease in its 2021 income statement

Answers

Answer:

$3,411,922.19

Explanation:

Calculation to determine the interest revenue that Technoid would report for this lease in its 2021 income statement

First step is calculate interest for the first six months

Interest for the first six months=[$23,000,000-lease payment of 3,287,947) × 9%]

Interest for the first six months=$19,712,053×9%

Interest for the first six months=$1,774,084.77

Interest for the first six months=$1,774,085 (Approximately)

Second step is to calculate the interest for the second six months

Interest for the second six months=[$23,000,000 - lease payment of 3,287,947 - ($3,287,947 - $1,774,085)] × 9%

Interest for the second six months=($19,712,053-$1,513,862)×9%

Interest for the second six months=$18,198,191×9%

Interest for the second six months=$1,637,837.19

Now let determie the interest revenue using this formula

Interest revenue=Interest for the first six months+Interest for the second six months

Let plug in the formula

Interest revenue=$1,774,085+$1,637,837.19

Interest revenue=$3,411,922.19

Therefore the interest revenue that Technoid would report for this lease in its 2021 income statement is $3,411,922.19.

A company estimates that the appropriate discount rate (i.e., the cost of capital) for Project A, Project B, Project C and Project D described below is 10 percent. Assuming that the projects are independent, which project(s) should the company accept?

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
b. Project B has an internal rate of return of 9.5 percent.
c. Project C requires an up-front expenditure of $1,000,000 and has a profitability index of 0.85
d. Project D requires an up-front expenditure of $200,000 and generates a net present value of negative $200
e. None of the projects above should be accepted.

Answers

Answer:

a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.

Explanation:

a.

The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.

b.

When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.

c.

The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.

d.

Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.

R&D Technology Corporation just paid a dividend of $0.50 per share. Analysts expect its dividend to grow at 24 percent per year for the next two years and then 8 percent per year thereafter. If the required rate of return in the stock is 16 percent, calculate the current value of the stock.

Answers

Answer:

$8.82

Explanation:

The computation of the current value of the stock is given below:

Given that

The dividend per share is $0.50

The growth rate is 24% for the next two years

And, then it should be 8 % per year

And, the required rate of return is 16%

Now based on the above information, the current value of the stock is $8.82

The calculation is to be shown in the attachment

Solving for PMT of an annuity​) To pay for your​ child's education, you wish to have accumulated ​$ at the end of years. To do this you plan on depositing an equal amount into the bank at the end of each year. If the bank is willing to pay percent compounded​ annually, how much must you deposit each year to reach your​ goal?

Answers

Answer:

$783.87

Explanation:

Complete question "To pay for your​ child's education, you wish to have accumulated ​$10,000 at the end of 8 years. To do​this, you plan to deposit an equal amount into the bank at the end of each year. If the bank is willing to pay 13 percent compounded​annually, how much must you deposit each year to obtain your​goal?"

NPER = 8

FV = 10,000

Rate = 13%

PV = 0

Future Value of Annuity = PMT(Rate, NPER, PV, FV)

Future Value of Annuity = PMT(13%, 8, 10000, 0)

Future Value of Annuity = 783.8671964727014

Future Value of Annuity = $783.87

So, one must deposit $783.87 each year to reach the goal.

Ice Co stock has a beta of 1.85, the current risk-free rate is 5.10 percent, and the expected return on the market is 15.10 percent. What is Ice Co's cost of equity

Answers

Answer:

23.60%

Explanation:

According to the capital asset price model:

cost of equity = risk free + beta x (market rate of return - risk free rate of return)

5.10 + 1.85 x (15.10 - 5.10)

= 5.10 + (1.85 x 10)

=23.60%

Mott Company's sales mix is 3 units of A, 2 units of B, and 1 unit of C. Selling prices for each product are $37, $47, and $57, respectively Variable costs per unit are $30, $31, and $34, respectively. Fixed costs are $456,000. What is the break-even point in composite units?
a) 1.239 composite units
b) 1357 composite units
c) 2763 composite units
d) 4,606 composite units.

Answers

Answer:

6,000 composite units

Explanation:

                                                 A    B     C      Total

Selling price per unit              37   47    57  

Less: Variable cost per unit   30   31     34

CM per unit                              7     16     23  

Sales mix                                  3     2       1

CM per sales mix                    21    32    23    76

Break even in composite unit = Fixed cost / CM per sales mix

Break even in composite unit = $456,000 / 76

Break even in composite unit = 6,000

Allocative efficiency occurs:

a. Anywhere inside or on the production possibilities frontier.
b. When the total cost of production is minimized
c. At all points on the production possibilities frontier.
d. At only one point on the production possibilities frontier.
e. At the points where the production possibilities frontier crosses the horizontal or vertical axis.

Answers

Answer:

a. Anywhere inside or on the production possibilities frontier.

Explanation:

In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.  

The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.

On the [tex]\text{equilibrium point,}[/tex] the price for a supply [tex]\text{exactly matches}[/tex] with the demand for the product [tex]\text{for that supply}[/tex] at that price, and thus all the products are sold.

It occurs anywhere on the production possibilities frontier or on the inside of the frontier.

Therefore, the correct option is (a).

At the end of the first year of operations, 6,400 units remained in the finished goods inventory. The unit manufacturing costs during the year were as follows:
Direct materials $75
Direct labor 35
Fixed factory overhead 15
Variable factory overhead 12
Determine the cost of the finished goods inventory reported on the balance sheet under (a) the absorption costing concept and (b) the variable costing concept.

Answers

Answer:

Results are below.

Explanation:

Giving the following information:

The unit manufacturing costs during the year were as follows:

Direct materials $75

Direct labor 35

Fixed factory overhead 15

Variable factory overhead 12

Number of units= 6,400

The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.

The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).

Absorption method:

Unit product cost= direct material + direct labor + total unitary overhead

Unit product cost= 75 + 35 + 15 + 12

Unit product cost= $137

Total ending inventory cost= 137*6,400

Total ending inventory cost= $876,800

Variable costing method:

Unit product cost= direct material + direct labor + variable overhead

Unit product cost= 75 + 35 + 12

Unit product cost= $122

Total ending inventory cost= 122*6,400

Total ending inventory cost= $780,800

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