When management policy is to write off completely the production volume variance to cost of goods sold and the organization is experiencing increasing inventory.
The impacts of various denominator levels under absorption, costingincome in fixed overhead allocation rates.
We provide a pedagogical method for teaching students how "denominator level choice" affects absorption costing income in a typical costing system with predefined overhead application rates.
Alternately, using larger denominator levels while inventory is falling mitigates the decline in absorption costing income since fixed overhead is released into cost of goods sold.
Therefore, We also prove mathematically that the denominator level choice has no impact on absorption costing income if the production volume variance is prorated based on the units causing the variance.
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Market economic system
Answer:
Preparation of Cash flow statement is below:-
Explanation:
Please find the full information of question
The following are the financial statements of Nosker Company. NOSKER COMPANY Comparative Balance Sheets December 31 Assets 2017 2016 Cash $36,400 $19,600 Accounts receivable 33,000 19,200 Inventory 31,000 20,400 Equipment 59,400 77,600 Accumulated depreciation—equipment (29,800 ) (23,700 ) Total $130,000 $113,100 Liabilities and Stockholders’ Equity Accounts payable $28,700 $ 16,100 Income taxes payable 7,100 8,000 Bonds payable 26,300 32,500 Common stock 18,200 13,600 Retained earnings 49,700 42,900 Total $130,000 $113,100 NOSKER COMPANY Income Statement For the Year Ended December 31, 2017 Sales revenue $242,100 Cost of goods sold 175,500 Gross profit 66,600 Operating expenses 23,900 Income from operations 42,700 Interest expense 2,400 Income before income taxes 40,300 Income tax expense 8,100 Net income $32,200. Prepare a statement of cash flows for Nosker Company using the direct method.
Nosker Company
Statement of cash flow
For the year ended 31 December, 2017
Cash flow from operating activities
Receipt from customers $228,300
($242,100 - $13,800)
Less Cash payment
Suppliers $173,500
($175,500 + $10,600 - $12,600)
Operating expenses $8,300
(23,900 - $15,600)
Income tax expenses $900
($8,100 + $900)
Interest expenses $35,100
Cash flow from investing activities
Sale of equipment $8,700
Net cash provided by Investing activities $8,700
Cash flow from financing activities
Issuance of company stock $4,600
Less: Land Redemption $6,200
Less: Payment of cash dividend $25,400
Net cash used by financing activities $27,000
Net Increase in cash $16,800
Beginning cash $19,600
Cash at end of period $36,400
Answer:
Demand And Supply
Explanation:
Demand and supply are the biggest factors of buisness when demand becomes higher than supply it results in angry customers and unhappy reviews
Answer:
b. spending by individuals and households on only non-durable goods.
Explanation:
Consumption spending is spending by individuals and households on only non-durable goods. Consumption is a component of GDP which includes spending on goods and services by individuals and households as it includes non-durable as well as durable goods on the basis of consumption patterns.
Answer:
Jaxon Furnishings Company Vs Logging Opportunities in Alaska
Comparison of the benefits of increased wood production to the costs of deforestation:
The company is using the __environmental sustainability___ approach to make this ethical decision.
Explanation:
According to brittanica.com, environmental "sustainability is understood as a form of intergenerational ethics in which the environmental and economic actions taken by present persons do not diminish the opportunities of future persons to enjoy similar levels of wealth, utility, or welfare."
An approach to an ethical decision is sustainable when it considers the long-term benefits and costs associated with the decision, instead of concentrating on the short-term benefits as some business transactions are done. Short-termism selfishly considers the immediate gains from a transaction. It lacks a futuristic appetite for the good of future generations.
Answer:
The government needs to revamp the Social Security program to make it sustainable.
Explanation:
A normative economic statement is always a suggestion for the economy, whereas a descriptive economic statement is a statement providing information, as it states the facts and do not provide any suggestion.
Here, in given instance the statement,
Government needs to improve or form the Social Security Program, so that the program is sustainable, is a suggestion and not a fact.
Thus, it is a normative economic statement.
Among the provided statements, the one suggesting the government needs to revamp the Social Security program to be sustainable is the normative economic statement due to its prescription for improvement.
Normative economics involves judgments and prescriptions for economic policies or outcomes. Among the provided statements, 'The government needs to revamp the Social Security program to make it sustainable' is a normative economic statement. This statement is normative because it is based on value judgments and expresses an opinion on how things should be. It suggests a course of action that ought to be pursued to improve the Social Security program and doesn't merely describe factual aspects of the economy like the rest of the statements do.
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