In class, we discussed the differences between a contribution income statement versus the traditional approach (absorption which is gaap). there is no difference in operating income between the two: • if it is a merchandising company since all cost of goods sold are variable. • manufacturing company when the units produced are the same as the units sold. however, the operating income will be different for a manufacturing company when the units produced do not equal the units sold. if a manufacturing company sells a lot of inventory that was produced in a previous year, the fixed manufacturing overhead associated with the inventory that was on the balance sheet will be expensed under the traditional approach and under the contribution margin approach the fixed manufacturing overhead with the units sold was expensed in the previous year since fixed expenses are expensed when incurred. therefore, based on the previous paragraph, when inventory levels decrease, under which approach will show a higher operating income?
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Business, 22.06.2019 01:30, sophie5064
How will firms solve the problem of an economic surplus a. decrease prices to the market equilibrium price b. decrease prices so they are below the market equilibrium price c. increase prices
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Business, 22.06.2019 20:30, joaquin42
Hank itzek manufactures and sells homemade wine, and he wants to develop a standard cost per gallon. the following are required for production of a 70-gallon batch. 2,700 ounces of grape concentrate at $0.04 per ounce 77 pounds of granulated sugar at $0.43 per pound 133 lemons at $0.79 each 350 yeast tablets at $0.24 each 350 nutrient tablets at $0.14 each 2,500 ounces of water at $0.001 per ounce hank estimates that 4% of the grape concentrate is wasted, 9% of the sugar is lost, and 32% of the lemons cannot be used. compute the standard cost of the ingredients for one gallon of wine. (round intermediate calculations and final answer to 2 decimal places, e. g.
Answers: 3
Business, 24.06.2019 00:30, laylay120
Your employer has asked you to start working overtime and has offered to pay $18 per hour for every hour you work beyond forty hours a week. the wage rate for each of the first forty hours will continue to be the usual $15 per hour. in terms of dollars, what is the marginal benefit of working each hour of overtime?
Answers: 2
In class, we discussed the differences between a contribution income statement versus the traditiona...
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