Answer: All of the other answer choices are true.
Explanation:
FIFO simply refers to “First-In, First-Out” and the method assumes that the oldest goods that are in the inventory of a company have been sold first and therefore, the costs that are paid for them will be used for the calculation.
The following are true regarding the FIFO method:
• FIFO under a perpetual inventory system results in the same cost of goods sold as FIFO under a periodic inventory system.
• A company can choose to account for the flow of inventory using the FIFO method even if this doesn’t match the actual flow of its inventory.
• Perishable goods often follow an actual physical flow that is consistent with the FIFO method assumptions.
Therefore, the correct option is D as all are true.
Answer:
1 Ask Fred to run team meetings in order to get to know people more quickly.
Explanation:
This alternative is the most effective to help Fred adjusting to the team and build cultural competence. There are 2 reasons: 1. The other options did not allow Fred of socializing with team members and take a lesson of them. 2. Cultural competence goes beyond knowing business rules and how to make decisions.
Answer:The product margin for product M5 is $7,385
Explanation:
To calculate the product margin for product M5,
Processing 3,870 ÷ 9,000
= 0.43 per MH
Supervising 25,000 ÷ 1,000
= $25 per batch
To calculate the overhead cost for product M5
Processing 0.43 per MH × 500
= $215
Supervising $25 per batch × 500 batches
= $12,500
Total = $12,500 + $215
= $12,715
To calculate the product margin for product M5 under activity based costing
$
Sales. 95,400
Less:
Direct materials 32,500
Direct Labour 42,800
----------------
Prime Cost. 75,300
Add: Overhead 12,715
----------------
Total Cost of production. 88,015
-----------------
Product Margin. 7,385
------------------
Total period cost for September is 292,000
