Jefferson Company's demand for its only product exceeds its manufacturing capacity. The company provided the following information for the machine whose limited capacity is prohibiting the company from producing and selling additional units. Actual run time this week Machine time available per week Actual run rate this week 7,020 minutes 9,000 minutes 9.35 units per minute

Q: Define opportunity costs and explain why they represent acommon source of error in making cost…

A:

Q: Explain how the activity resource usage model is used in assessing relevancy.

A: Decision making is an important component of every single business. The end results of the…

Q: Define initial direct costs.

A: Initial direct cost: A cost that is incurred during the process of initiating the agreement of lease…

Q: Give detail definition on operational cost and explain in detail how the operational cost is…

A: Introduction:- The following definition of operational cost as follows under:- Operating costs are…

Q: Explain briefly what the EOQ model is andhow it can be used to help establish an optimalinventory…

A: Economic Order Quantity (EOQ) Model It is a method of inventory costing that aims to identify the…

Q: Why is it important to distinguish flexible and committed resources?

A: The economic elements that allow one to perform activities are referred to as the resources.…

Q: Standard costing improves the control functions” discuss this statement give some examples.

A: Standard Costing: It is the accounting system in which standard cost is measured with actual cost to…

Q: Explain the measures of cost allocation.

A: The company incurs a different cost to provide goods and services to the customers. The entity…

Q: Explain price improvement

A: It is a process where the purchasing customer gets the opportunity to buy shares at a lower cost…

Q: Explain the following concepts: indirect materials Mixed cost Budgeting Margin of safety

A: The total manufacturing cost of the product is determined by including the direct material, labor,…

Q: Process value analysis is the examination, quantification, and explanation of the effects of cost…

A: Process Value Analysis: Process value analysis involves a critical analysis of all the processes…

Q: Which type of cost center has a planning focus, and which type has an evaluation focus?

A: Cost Center: It is a department within an organization to which costs can be assigned.

Q: Explain the term overhead absorption rate and briefly explain how an entity may select a  suitable…

A: In accounting, the term "absorption rate" typically refers to the overhead absorption rate or…

Q: Discuss relevant cost.

A: Relevant cost term is used in making decision whether to buy or not.Whether to produce a goods or…

Q: Define total productive efficiency

A: Cost accounting is the branch of accounting that inspects the cost structure of a business. This…

Q: Define Cost recovery method

A: Cost recovery is a method in accounting wherein a business only records the revenue it earns from a…

Q: Discuss ROPs and to tal costs.

A: Answer: ROP is defined as reorder point. This is the inventory level that is to be maintained at the…

Q: What is modified accelerated cost recovery system (MACRS)?

A: Any fixed asset purchased has a fixed life throughout which it has to be used. Over the course of…

Q: Explain Classifying Costs for Predicting Cost Behavior?

A:

Q: Explain why it's assumed that the cost-time curve is straight. What is the most practical form to…

A: The project cost/project time tradeoff is a significant addition to the fundamental network analysis…

Q: are measures of activities that require the use of resources and thereby cause costs Value Chain…

A: Solution: Cost drivers are measure of activities that requires the use of resources and thereby…

Q: Why is it important to establish appropriate cost pools?

A: Activity cost pools are used in activity based costing which attempts to absorb overheads in a more…

Q: Adoption of Activity based costing?

A: Introduction:- In this context, the question is asking about the factors that influence the adoption…