Answer and Explanation:
a. The president remark in case of the allocated fixed expenses should be ignored the misleading result as it is seen that the division B has suffered a loss of $6,000 due to which the president exclaimed "I knew it!.
Moreover the president ignored the given information i.e $172,000 included $94,500 that had been split evenly between divisions as they are classified as a general corporate expenses
So if it is split evenly the general corporate expenses for division B is $31,500 which is come from by dividing the $94,500 from 3 divisions
And if we do not allocated the expenses so all divisions would come in profit
Answer:
Aston has given the information required to meet division profit objective. Increasing the profit objective is common goal of every manager. Here manager wanted to meet profit objective by minimising fixed cost which is not wrong motive. Whether the excess production can be sold in the market. If there is a chance to sell, more production can be made.
Absorption costing means that all of manufacturing costs are absorbed by units produced. It calculates every cost on no. of units produced but it does not mean to increase production only in order to match income objective or to reach this goal instead of fact that inventory remains at end, and sale of that increased production does not take place and income objective met because of the lower cost per unit.
Answer:
C. An appraisal the practitioner prepared in connection with the 2017 federal income tax return.
Answer:
economic responsibility.
Explanation:
Layton has decided to donate a portion if his business Music Box earning's to a charity every year. His action of making donation decision is of economic responsibility. The decision is made to help out community in a good faith and is considered as social responsibility as Layton does not have any legal responsibility to make charity but still he decides to serve the society through his business earnings.
