Question: Why are companies with small levels of inventory generally unconcerned
Why are companies with small levels of inventory generally unconcerned with the choice of variable or absorption costing?
Answer to relevant Questions“Service firms trace only direct-labor costs to jobs. All other costs are applied as a percentage of direct-labor cost.” Do you agree? Explain.Sometimes direct-labor cost is the best cost-allocation base for overhead application even if wage rates vary within a department.” Do you agree? Explain.Many costs on a product’s value chain, such as R&D and product design costs, are considered period costs and are not assigned to units of product. An absorption-costing system could be expanded to apply such costs to the ...Study Appendix 13. Consider the following data for the Hamlin Company:From the preceding information, fill in the following blanks. Be sure to mark your variances F for favorable and U forunfavorable.Assume the same facts as in the preceding problem. In addition, consider the following actual data for 20X1:Direct materials ...... $ 262,000Direct labor ......... 171,000Variable factory overhead ... 38,000Fixed factory ...
Post your question