A study has been conducted to determine if Product A should be dropped. Sales of the product total $200,000 per year; variable expenses total $140,000 per year. Fixed expenses charged to the product total $90,000 per year. The company estimates that $40,000 of these fixed expenses will continue even if the product is dropped. These data indicate that if Product A is dropped, the company's overall net operating income would:

Answers

Answer 1

Answer:

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Explanation:

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Related Questions

what effect does a rise in fuel prices have on product prices​

Answers

Answer:

Rise in product prices

Explanation:

It becomes more expensive to produce and to transport the goods, so the product price will increase to make up for it.

The project management plan is the output of the planning process of project _____. a. scope management b. procurement management c. integration management d. quality management

Answers

Hola lo siento no te entiendo

The planning for project management should be the result of the planning process of project integration management.

The information related to the project integration management is as follows:

It involved the coordination of all the parts of the projects. It is the formal document that measured how the project should be executed, controlled & checked.

Therefore, the other options are incorrect.

Thus we can conclude that the planning for project management should be the result of the planning process of project integration management.

Learn more about the project here: brainly.com/question/15999858

High owns 60% of Low. In 2019, Low sold inventory (cost $70,000) to High for $100,000. 40% of this inventory was not sold to third parties by High until 2020. In 2020, Low sold inventory (cost $72,000) to High for $120,000. Of this inventory, $50,000 was not sold to third parties by High until 2021. In 2020, Low reports $70,000 of net income. What is the noncontrolling interest in 2020 income of Low. $24,800 $31,200 $37,200 $46,800

Answers

Answer: $24800

Explanation:

To calculate the noncontrolling interest in 2020 income of Low goes thus:

Profit reported by Low in 2020 = $70000

Add: Profit in opening stock that isn't sold to third party = ($100,000 × 40%) × 30% = $12,000

Less Profit in Opening stock that's not sold to third party = $50000 ×40% =$20000

The Total Profit will be:

= $70000 + $12000 - $20000

= $62000

Then, the noncontrolling interest in 2020 income of Low will be:

= $62000 × 40%

= $62000 × 0.4

= $24800

Members of 67 countries attended a conference on economic development hosted by an international organization based in Gent, Belgium. Attendees of the workshop learned about techniques designed to assist countries in expanding their degree of economic development. Emerging markets act as manufacturing bases for global Miltinationals Enterprises because of ________.

Answers

Answer:

High availability.of cheaper labour

Explanation:

An emerging market is defined as one that does not meet the standards of a fully developed market. For example in the area.of labour cost there is no standard set for it.

So companies can get cheap labour from these economies.

Companies like Apple and Nike have used cheap labour from emerging countries to reduce their cost of production.

Manufacturing bases are established in relatively poorer economies where the workers are willing to work for cheap wage

Assume you are using the dividend growth model to value stocks. If you expect the inflation rate to increase, you should also expect: A. market value of all stocks to decrease, all else equal. B. market value of all stocks to remain constant as the dividend growth will offset the increase in inflation. C. stocks that do not pay dividends to decrease in price while dividend paying stocks maintain a constant price.

Answers

Answer:

A

Explanation:

the constant dividend growth model

price = d1 / (r - g)

d1 = next dividend to be paid

r = interest rate

g = growth rate

Interest rate used is usually nominal, thus, it increases with inflation rate

We can see that the interest rate is an inverse function of the value, thus when inflation increases, interest rate increases and price declines

Example

d1 = 5

r = 10%

g = 5%

5/ (0.1 - 0,05) = 100

when interest rate increases to 20% as a result of inflation, value becomes

5 / 0.2 - 0.05 = 33.33

value decreased with increase in inflation

Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback

Answers

Answer:

5.155 year

Explanation:

The computation of the projected discounted payback period is shown below:

Year      Inflow     Present value   Present value   Cumulative PV

                           factor at 8%  

1          11000             0.926                  10186               10186

2         11000             0.857                  9427                 19613

3          11000           0.794                   8734                28347

4          11000           0.735                   8085               36432

5          11000          0.681                    7491                43923

6          11000          0.631                   6941                 50864

7         11000           0.583                  6413                  57277

8         11000          0.540                  5940                 63217

Now

Discounted payback period  is

= 5 year + (45000-43923) ÷ 6941

= 5 year + 0.155

= 5.155 year

A holiday sales flyer advertised a video game system for a significantly reduced price and
video game with purchase. Later that day, the sales associate told you that the store is out of
both items. Instead, you were offered a different system and games at full retail prices. What is this type of fraud called?

Answers

Answer: Bait and switch

Explanation:

The type of fraud here is referred to as the bait and switch fraud. This fraud occurs when customers are told about the low prices and quality of a product but aren't available when customers want to purchase such products and they're then given products that are costlier or products that are of lesser quality.

This can be seen in the question when the sales associate advertised the video game system for a reduced price which wasn't available when customers wanted to buy but were offered a game that was costlier.

For calendar year 3, Clark Corp. had depreciation of $300,000 on its income statement. On its Year 3 tax return, Clark had depreciation of $500,000. Clark's income statement also included $50,000 accrued warranty expense that will be deducted for tax purposes when paid in a future year. Clark's enacted tax rates was 25% for all years. These were Clark's only temporary differences. The total deferred tax expense for year 3 should be:

Answers

Answer:

Clark Corp.

The total deferred tax expense for year 3 should be:

= $62,500.

Explanation:

a) Data and Calculations:

Accounting depreciation expense = $300,000

Tax depreciation expense = $500,000

Temporary Difference =  $200,000 ($500,000 - $300,000)

Accrued Warranty Expense 50,000

Total temporary differences = $250,000

Clark's enacted tax rate = 25%

Total deferred tax expense = $62,500 ($250,000 * 25%)

On December 1, 2021, Keenan Company, a U.S. firm, sold merchandise to Velez Company of Canada for 150,000 Canadian dollars (CAD). Collection of the receivable is due on February 1, 2022. Keenan purchased a foreign currency put option with a strike price of $0.97 (U.S.) on December 1, 2021. This foreign currency option is designated as a cash flow hedge. Relevant exchange rates follow:

Date Spot Rate Option Premium
1-Dec-18 $0.97 $0.05
31-Dec-18 $0.95 $0.04
1-Feb-19 $0.94 $0.03

Required:
Compute the fair value of the foreign currency option at February 1.

Answers

Answer:

Keenan Company (U.S.) and Velez Company (Canada)

The fair value of the foreign currency option at February 1 = $4,500.

Explanation:

a) Data and Calculations:

Value of merchandise sold to Velez Company = CAD 150,000

Collection date of the receivable = February 1, 2022

Strike price of foreign currency put option purchased by Keenan = US$0.97

Relevant exchange rates follow:

Date        Spot Rate   Option Premium

1-Dec-21       $0.97          $0.05

31-Dec-21    $0.95          $0.04

1-Feb-22      $0.94         $0.03

The fair value of the option is based on the the change that has occurred in the Spot Rates from December 1, 2021 to February = $0.03 ($0.97 - $0.94)

Therefore, the fair value = 150,000 * $0.03 = $4,500

When the price of a good is $5, the quantity demanded of a good is 30 units, and the quantity supplied of the good is 50 units. For every $1 decrease in the price of this good, quantity demanded rises by 5 units and quantity supplied falls by 5 units. The equilibrium price of this good is ___________and the equilibrium quantity of this good is _________ units.

Answers

Answer:

the equilibrium price is $3 and equilibrium quantity is 40

Explanation:

The computation of the equilibrium price and quantity is shown below:

Price       Quantity demanded          Quantity supplied

$5                 30                                     50

$4                  35                                     45

$3                  40                                     40

$2                  45                                      35

$1                   50                                      30            

The equilibrium price is the price where the quantity demanded is equivalent to the quantity supplied        

So the equilibrium price is $3 and equilibrium quantity is 40

Learning involves changes in an individual's behavior resulting from previous experiences and information.
t or f

Answers

I believe it’s false here’s a link to see it https://quizlet.com/216989329/chapter-13-marketing-helping-buyers-buy-flash-cards/

It is a true statement that Learning involves changes in an individual's behavior resulting from previous experiences and information.

What is a Learning?

It refers to when we acquire knowledge or skills through personal study, experience, lesson, lecture etc

Hence, this process creates changes in an individual's behavior resulting from previous experiences and information as they tends to manifest in the learners action.

Therefore, it is a true statement

Read more about Learning

brainly.com/question/24959987

Discuss the negative impact of piracy on businesses.​

Answers

Let's take a game company for example. To make a video game you have to invest into a large team of developers who work hard several years so that the final product comes out polished and ready to be played. Game piracy directly hurts the company's income and the company has to somehow pay their developers. This model applies to each industry today and that's why piracy is technically illegal today, in a way we can even call it stealing.

Which of these statements is true?
O Simple interest percentages must be lower than compound interest percentages
O Compound interest will lead to a larger sum of money than a comparable simple interest payment
O Simple interest payments equal compound interest payments if invested over 10 years
all of these

Answers

Answer:

Compound interest will lead to a larger sum of money than a comparable simple interest payment.

Explanation:

The true statement is that compound interest will lead to a larger sum of money than a comparable simple interest payment because the interest are compounded for a certain number of times such as daily, weekly, quarterly or annually while simple interest isn't compounded at all.

To find the future value, we use the compound interest formula;

[tex] A = P(1 + \frac{r}{n})^{nt}[/tex]

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

n is the number of times the interest is compounded in a year.

t is the number of years for the compound interest.

Mathematically, simple interest is calculated using this formula;

[tex] S.I = \frac {PRT}{100} [/tex]

Where;

S.I is simple interest.

P is the principal.

R is the interest rate.

T is the time.

The following materials standards have been established for a particular product at Zoom Industries: Standard quantity per unit of output 6.3 pounds Standard price $15.10 per pound The following data pertain to operations concerning the product for the last month: Actual materials purchased 7,650 pounds Actual cost of materials purchased $64,780 Actual materials used in production 7,150 pounds Actual output 890 units The direct materials purchases variance is computed when the materials are purchased. What is the materials quantity variance for the month

Answers

Answer:

the material quantity variance is $23,299.30 unfavorable

Explanation:

The computation of the material quantity variance is shown below:

= (standard quantity - actual quantity) × standard rate

= (6.3 × 890  - 7,150) × $15.10

= (5,607 - 7,150) × $15.10

=  $23,299.30 unfavorable

Hence, the material quantity variance is $23,299.30 unfavorable

Park Co. holds a 80% interest in San Marino Co. During 2019, San Marino sold inventory costing $1,155,000 to Park for $1,650,000. A total of $600,000 of this inventory was not sold to outsiders until 2020. During 2020, San Marino sold inventory costing $1,080,000 to Park for $1,800,000. A total of $750,000 of this inventory was not sold to outsiders until 2021. In 2020, Park reported a net income of $2,250,000 while San Marino reported $1,350,000. What is the noncontrolling interest in the 2020 income of the subsidiary

Answers

Answer:

Park Co and San Marino Co.

The noncontrolling interest in the 2020 income of the subsidiary is:

= $270,000.

Explanation:

a) Data and Calculation:

Interest in San Marino Co. = 80%

Cost of 2020 Inventory sold by San Marino to Park = $1,080,000

Sales value of the inventory = $1,800,000

Profit element = $720,000 ($1,800,000 - $1,080,000)

Sales value of unsold inventory = $750,000

Profit element in unsold inventory = $750,00/$1,800,000 * $720,000

= $300,000

Net income of San Marino for 2020 = $1,350,000

Less profit element in unsold inventory  300,000

Adjusted net income =                         $1,050,000

Non-controlling interest (20%)                  210,000 (20% of $1,050,000)

Non-controlling interest (20%) in

unsold inventory =                                     60,000

Total net income attributable to

Non-controlling interest                        $270,000

(which is equal to 20% of the subsidiary's net income)

Break-Even Sales Currently, the unit selling price of a product is $1,500, the unit variable cost is $1,200, and the total fixed costs are $4,500,000. A proposal is being evaluated to increase the unit selling price to $1,600. a. Compute the current break-even sales (units). fill in the blank 1 units b. Compute the anticipated break-even sales (units), assuming that the unit selling price is increased and all costs remain constant. fill in the blank 2 units

Answers

Answer and Explanation:

a. The computation of the current break-even sales (units) is shown below:

= Fixed cost ÷ (Selling price - variable cost)

= $4,500,000 ÷ ($1,500 - $1,200)

= $4,500,000 ÷ $300 units

= 15,000 units

b. The anticipated break-even sales (units) is

= Fixed cost ÷ (Selling price - variable cost)

= $4,500,000 ÷ ($1,600 - $1,200)

= $4,500,000 ÷ $400 units

= 11,250 units

What steps will allow you to use the Keep Together property to ensure that none of the records are broken between two pages when they are printed?

Answers

Answer: 1. design

2. property sheet

3. yes

Explanation: just did it

On January 1, 2018, Advanced Airline purchased a used airplane at a cost of $60,500,000. Advanced Airline expects the plane to remain useful for eight years (5,000,000 miles) and to have a residual value of $5,500,000. Advanced Airline expects the plane to be flown 1,100,000 miles the first year and 1,200,000 miles the second year.

Requirements
1.​Compute first-year (2019) depreciation expense on the plane using the following methods:
a.​Straight-line
b.​Units-of-production
2.​Show the airplane’s book value at the end of the first year for the two methods.

Answers

Answer:

Results are below.

Explanation:

First, we need to calculate the annual depreciation using the straight-line method:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (60,500,000 - 5,500,000) / 8

Annual depreciation= $6,875,000

Now, using the units of production method:

Annual depreciation= [(original cost - salvage value)/useful life of production in miles]*miles operated

Annual depreciation= [(55,000,000 / 5,000,000)]*1,100,000

Annual depreciation= $12,100,000

Finally, the book value:

Book value= purchase price - accumulated depreciation

Straight-line:

Book value= 60,500,000 - 6,875,000= $53,625,000

Units-of-production:

Book value= 60,500,000 - 12,100,000=  $48,400,000

1. Descriptive research is conducted for all of the following reasons except ________. a. to describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas b. to determine the degree to which marketing variables are associated

Answers

Answer: c. To understand which variables are the cause and which variables are the effect of a phenomenon

Explanation:

The options include:

a. To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas

b. to determine the degree to which marketing variables are associated

c. to understand which variables are the cause and which variables are the effect of a phenomenon

d. to determine the perceptions of product.

Descriptive research simply refers to a research type that is used in the description of a population that the researcher is studying.

It simply answers questions such as when, what or how in the research. The subject of the research is being described here.

From the options given, we should note that the descriptive research isn't conducted to understand which variables are the cause and which variables are the effect of a phenomenon.

At which stage should Joan discuss the look and feel of her website with her website designer?
At the _____?______ stage, Joan should discuss the look and feel of her website with her website designer.

Answers

Answer:

Joan and Website Design

At the ____Visual ____Elements_____ stage, Joan should discuss the look and feel of her website with her website designer.

Explanation:

The visual elements stage details the visual style together with the visual brand that Joan has specified for her desired website.  At this stage, the site architecture with some content is already in place.  The website designer must have utilized such tools like style tiles, mood boards, and element collages to create the visual appeal that resonates with Joan's specifications and requirements.

why did the gradute students and professors score lower than chimpanzees in Rosling's global health pre test?​

Answers

Answer:

...

Explanation:

"The problem... was not ignorance; it was preconceived ideas ." other words, pre-existing misconceptions in the minds of the test-takers caused them to return a worse result than if they had had no conceptions at all.

Ely Company has two support departments, Maintenance Department and Personnel Department, and two producing departments, X and Y. The Maintenance Department costs of $60,000 are allocated on the basis of standard service hours used. The Personnel Department costs of $9,000 are allocated on the basis of number of employees. The direct costs of Departments X and Y are $18,000 and $30,000, respectively. Data on standard service hours and number of employees are as follows:

Data on standard service hours and number of employees are as follows:
Maint. Person. Dept. Dept.
Dept. Dept. X Y
Standard service hours used 100 50 300 150
Number of employees 5 10 45 45
Direct labor hours 50 50 250 250

Predetermined overhead rates for Departments X and Y, respectively, are based on direct labor hours.

What is the overhead rate for Department Y assuming the direct method is used?

a. $120.00
b. $218.00
c. $109.00
d. $250.00

Answers

Answer:

b. $218.00

Explanation:

Calculation to determine the overhead rate for Department Y assuming the direct method is used

First step

Department Y$30,000

Maintenance Department $20,000

($60,000 × 150/450)

Personnel Department $4,500

($9,000 × 45/90)

Total $54,500

Now let calculate the overhead rate for Department Y

Department Y Overhead rate=$54,500/250

Department Y Overhead rate = $218

Therefore the overhead rate for Department Y assuming the direct method is used will be $218

A liquid asset is one that is easy to cash in.
What is the most liquid asset?
Which is more liquid, a savings account or a loan to a business?

Answers

Cash on hand is the most liquid asset. Money in a savings account is a popular liquid asset and is very easy to withdraw and more liquid than a loan to a business.
Cash on hand is considered the most liquid type of liquid asset since it is cash itself.

The notes to a recent annual report from Weebok Corporation indicated that the company acquired another company, Sport Shoes, Inc. Assume that Weebok acquired Sport Shoes on January 5 of the current year. Weebok acquired the name of the company and all of its assets for $511,000 cash. Weebok did not assume the liabilities. The transaction was closed on January 5 of the current year, at which time the balance sheet of Sport Shoes reflected the following book values and an independent appraiser estimated the following market values for the assets:

Sport Shoes, Inc.
January 5 of the Current Year Book Value Market Value
Accounts receivable (net) $35,000 $35,000
Inventory 210,000 183,000
Fixed assets (net) 23,000 46,500
Other assets 10,000 16,000
Total Assets $278,000
Liabilities $72,000
Stockholders' equity 206,000

Market values for the purchased assets were provided to Weebok by an independent appraiser.

Required:
Compute the amount of goodwill resulting from the purchase.

Answers

Answer: $230,500

Explanation:

Goodwill is the amount over the value of a company that is purchased for.

Fair market value is the relevant value used in goodwill calculation because it represents the current value of the assets acquired.

Goodwill = Acquisition price - Fair market values of the assets

= 511,000 - 35,000 - 183,000 - 46,500 - 16,000

= $230,500

The bond, which has a $1,000 face value and a coupon rate equal to 10 percent, matures in six years. Interest is paid every six months; the next interest payment is scheduled for six months from today. Assuming the yield on similar risk investments is 14 percent, calculate the current market value (price) of the bond.

Answers

Answer:

Market value of bond = 841.14

Explanation:

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate.

Value of Bond = PV of interest + PV of RV

The value of bond  can be worked out as follows:

Step 1  

Calculate the PV of interest payments

Semi annual interest payment

= 10% × 1,000× 1/2 = 50

PV of interest payment

A ×(1- (1+r)^(-n))/r

r- semi-annual yield = 14%/2 = 7%

n- 6× 2 = 12

= 50× (1-(1.07^(-12)/0.07

= 397.13

Step 2

PV of redemption Value

PV = $1000 × (1.07)^(-12)

= 444.011

Step 3

Price of bond

= 397.13 +444.01

=841.14

Market value of bond = 841.14

There are 3 servers in the checkout area. The interarrival time of customers is 2 minutes. The processing time is 5 minutes. The coefficients of variation for the arrival process and the service process are 1 and 0.85 respectively. What will be the impact on the average number of customers in service if one more server is added

Answers

Answer:

As the one more server is added the Average number of customers in service reduces from  ( 5.585 to 3.019  )    which is a reduction of 2.566

Explanation:

interval time of customers ( a )  = 2 minutes

processing time ( p ) = 5 minutes

coefficient of variation for arrival process ( Cva ) = 1

coefficient of variation for service process ( Cvp ) = 0.85

Determine the impact on the average number of customers in service if one more server is added

For three (3) servers (  m ) we will have

flow rate = 1 / a = 1/2 = 0.5

x =  ( 2 (m+1) -1 ) ^0.5

where m = 3 ( number of servers )

hence X = 2.645

now lets determine

i) utilization =  p / (m*a). where p = 5 , m = 3 , a = 2

hence utilization ( u ) = 0.833 ,  1 - u = 1 - 0.833 = 0.167

ii) Time spent in queue

time spent in queue = 6.17 minutes

number of customers been served = mu = 3 * 0.833 = 2.500

number of customers waiting to be served = waiting time / arrival time

= 6.17 / 2 = 3.085

iii) Average customer in queue = number of customers been serviced + number of customers waiting to be served =  2.5 + 3.085 = 5.585

For 4 servers  ( m = 4 )

x = ( 2 (m+1) -1 ) ^0.5  

   = ( 2 ( 5 ) - 1 ) ^ 0.5 = 3

utilization =  p / (m*a). where p = 5 , m = 4 , a = 2

   hence utilization = 0.625 ,  

Time spent in queue =  1.039 minutes  ( using equation 2 )

number of customers been serviced = m* u = 2.5

number of customers waiting to be served = waiting time / arrival time

= 1.039 / 2 = 0.520

Average customer in queue = number of customers been serviced + number of customers waiting to be served = 2.5 + 0.520 = 3.019

hence as the one more server is added the Average number of customers in service reduces from  ( 5.585 to 3.019  )    which is a reduction of 2.566

Employer is desperate to hire sales people. Employer conducts initial telephone interviews and offers employment immediately over the telephone. In making the offer, the employer will always inflate the guaranteed sales commissions that the employee can expect by 200-300%. A potential employee takes the job, relocates and soon realizes that she was misled in terms of compensation. Which of the following is most true? A. A claim by the employee will probably be based on promissory estoppel B. A claim by the employee will probably be based on breach of contract C. Employers are permitted to exaggerate figures to entice people to apply D. Under the doctrine of ‘caveat canem’ an employee bears the risk of being misled in the employment screening

Answers

Answer:

A. A claim by the employee will probably be based on promissory estoppel

Explanation:

Promissory estoppel doctrine refers to trying to enforce a promise. In other words, a person that makes a promise is responsible for performing it as long  as:

the promissor made a promise and the promisee acted because of it the promisee relied on the promisethe promisee suffers a loss due to the unfulfilled promise

During 2017, Grambling Company purchased 10,000 shares of Southern Corp. common stock for $215,000 as a passive interest investment. The fair value of these shares was $289,000 at December 31, 2017. During 2018, Grambling sold all of the Southern stock for $226,000. Grambling Company should report a realized gain on the sale of stock in 2018 of:______.A. $25,000.
B. $26,000.
C. $11,000.
D. $37,000.

Answers

Answer:

C. $11,000

Explanation:

Calculation to determine what Grambling Company should report as a realized gain on the sale of stock in 2018

Using this formula

2018 Realized gain on the sale of stock =Selling price-Cost of securities

Let plug in the formula

2018 Realized gain on the sale of stock=

$226,000 -$215,000

2018 Realized gain on the sale of stock=$11,000

Therefore Grambling Company should report a realized gain on the sale of stock in 2018 of $11,000

Shiffon Electronics manufactures music players. Its costing system uses two cost​ categories, direct materials and conversion costs. Each product must pass through the Assembly​ Department, the Programming​ department, and the Testing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production. Shiffon Electronics uses weightedaverage costing. The following information is available for the month of March 2020 for the Assembly department. Work in​ process, beginning inventory units Conversion costs ​(​% ​complete) Units started during March units Work in​ process, ending​ inventory: units Conversion costs ​(​% ​complete) The cost details for the month of March are as​ follows: Work in​ process, beginning inventory Direct materials Conversion costs Direct materials costs added during March Conversion costs added during March What are the equivalent units for direct materials and conversion​ costs, respectively, for​ March?

Answers

Answer:

1,100 units; 1,050 units

Explanation:

Calculation to determine the equivalent units for direct materials and conversion​ costs, respectively, for​ March

DIRECT MATERIALS CONVERSION COSTS L

Completed and transferred out

1,000 units 1,000 units

(300 units+800 units - 100 units)

Add Work in process, ending

100 units 50 units

(50% Complete*100 units=50 units)

Total equivalent units

1,100 units 1,050 units

Therefore the equivalent units for direct materials and conversion​ costs, respectively, for​ March will be 1,100 units; 1,050 units

General Mattress Company makes Memory Foam mattresses, a mass-market high-volume product, and Magnetic Levitation mattresses, a premium low-volume product. The company uses a traditional cost allocation with a single cost pool. It is planning to implement activity-based costing (ABC). After implementing ABC, the company will likely find that the traditional cost allocation: Group of answer choices

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

First of all, this question is not complete and lacks the group of answer choices. However, I have found that question with complete options on the internet.

So,

The Correct option is: D

Option D =  Not enough information

Reasoning:

For overestimated or underestimated or not full information required i.e. cost under traditional method and cost under activity based cost method , both information required for compare methods cost under each method.

Under Activity base costing all indirect cost is applied as per activities use by each product but under traditional method only one key factor use for applied overheads i.e. direct labor hours or machine hours etc.

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