Question

Define the term Reduced cost?

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: Mr. Evans Otabil has been in business for a number of years. In the past year, he has been busy Lear...

A: Statement showing Profit and Loss for the year ended 31st May 2018: Reference:

Q: Please, help me solve this! Thanks!

A: The decision and conclusion of management are incorrect. There will not be an improvement in the pro...

Q: List and define the four basic management activities.

A:  Definition: Managerial accounting: Managerial accounting is a system, or a process of collecting an...

Q: A $485,000 bond issue on which there is an unamortized discount of $35,000 is redeemed for $470,000....

A: A bond is an interest-bearing loan instrument that is issued by the companies to raise funds for the...

Q: If a fixed asset, such as a computer, were purchased on January 1st for $1,562.00 with an estimated ...

A: Straight-line method: Under the straight-line method of depreciation, the same amount of depreciati...

Q: The treasurer of Kakeldadi’S Club has presented the following Information to you on 31st December, 2...

A: Trading account is the part of financial statement prepared by the business firm. Trading accounts s...

Q: Explain why the quantity purchased (PQ) is used in computing the direct-material purchase price vari...

A: Material Purchase Price Variance: Material price variance occurs when the price expected to purchase...

Q: What is a revenue variance and what does it mean?

A: Click to see the answer

Q: Kleen Company acquired patent rights on January 10 of Year 1 for $2,800,000. The patent has a useful...

A: The expenses for successfully defending the patent in a lawsuit increases the value of the patent an...

Q: Bonds Payable has a balance of $1,200,000 and Premium on Bonds Payable has a balance of $18,750. If ...

A: Click to see the answer

Q: Why is it difficult to interpret a difference between how much expense was budgeted and how much was...

A: It is difficult to interpret a difference between how much expense was budgeted and how much was act...

Q: Mr. Yiadom decided on 1 July, to invest his insurance compensation of GHȼ 4,000,000 in a retail busi...

A: 'FIFO' means First In First Out. This method assumes that inventory is sold in the order of purchase...

Q: 

A: a) Cost of Goods Manufactured = Direct Material + Direct Labor + Factory Overhead + Opening WIP - Cl...

Q: Consider the following data on an asset:Cost of the asset, I                      $38.000Useful life...

A: Straight-line depreciation method: The depreciation method which assumes that the consumption of eco...

Q: How does activity-based budgeting explain the logic of budgeting?

A: Activity based budgeting: It is a budgeting system where budgets are prepared based on the expected...

Q: Define the term accounts receivable?

A: Click to see the answer

Q: Matthew Bell, a salesman, couldn’t have been expected to know that CPAs are explicitly prohibited fr...

A: The contingency fee is charged as a percentage of the refund obtained. In this case, Pam Williams pr...

Q: What adjustment is made for underapplied overhead on the schedule of cost of goods sold? What adjust...

A: Overhead cost: The costs other than the direct costs such as insurance, interest, repairs, taxes etc...

Q: Week 2- Analyzing Transactions and the Adjusting Process Define the following: Accrual basis of a...

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,...

Q: How solvent is the business and how many interest payments can the business service on its own?

A: Solvency of the company is the ability of a company to meet its long-term debts and financial obliga...

Q: Define activity-based costing (ABC)

A: Cost:   It is the economic value of resources incurred by a firm to manufacture a product or render ...

Q: 1.Read the statements below and answer the question - The earnings process should be completed entit...

A: Hello. Since you have posted multiple questions and not specified which question needs to be solved,...

Q: 3. Nizwa Co. has the following information available for September 2015. R.O. 10,800 R.O. 2,600 R.O....

A: Cost Volume Profit Income Statement Cost Volume Profit (CVP) Income Statement is a statement that sh...

Q: Express the two ways of contribution margin?

A: Contribution margin is the difference between the sales revenue and the variable costs.

Q: What is the most important difference between a manufacturing firm and a service industry firm, with...

A: Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare the merchandis...

Q: A partnership is currently holding $400,000 in assets and $234,000 in liabilities. The partnership i...

A: Click to see the answer

Q: How does the definition of Owner's Equity of Islamic Banks differ from owner's equity in a conventio...

A: Owner’s equity: It can be defined as the rights of the owner to the assets of the company. The asset...

Q: How could the administration at Immunity Medical Center’s Primary Care Unit use the information deve...

A: Click to see the answer

Q: Would a sale of equipment for cash be considered a financing activity or an investing activity? Why?

A: Investing activity relates to activities relating to sale or purchase of assets which is related to ...

Q: Prentice Company is considering dropping one of its product lines. What costs of the product line wo...

A: Relevant Cost: Relevant cost is the avoidable cost which incurred at the time of the decision making...

Q: The following data were collected for a retailer:Cost of goods sold $3,500,000Gross profit $700,000O...

A: Click to see the answer

Q: Thompson manufacturing produces industrial scales for the electronics industry. Management is consid...

A: Break-even is that point at which the project or an entity is in a situation of no profit & no l...

Q: What is meant by customer-profitability analysis? Give an example of an activity that might be perfo...

A: Customer Profitability Analysis:  It is the process of ascertaining the amount of revenue earned fro...

Q: Please, help me solve it!

A: The difference between the absorption and variable costing methods is the treatment of fixed manufac...

Q: Identify two simplifying assumptions associated with discounted cash flow methods of making capital ...

A: Click to see the answer

Q: A company with an advanced manufacturing environment typically will have a higher break-even point, ...

A: Advanced manufacturing environment: It can be defined as a situation where a strong competition take...

Q: Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammerheads, s...

A: Asset turnover: This ratio analyzes number of times sales or revenue generated from the available as...

Q: Describe how a bank might use standards.

A: Standards are a set of the parameter for any process which is used to run the businesses. It is main...

Q: You are an audit senior of OLA & Co, planning the final audit of a new client, EAHO Construction...

A: Audit Risks: The risk that may arise from the materially incorrect financial statements that were op...

Q: An asset was purchased for $138,000.00 on January 1, Year 1 and originally estimated to have a usefu...

A: Click to see the answer

Q: On May 3, Zirbal Corporation purchased 5,000 shares of its own stock for $45,000 cash. On November 4...

A: Treasury stock when shares reissued= (Cost of purchase / Number of shares) * Number of shares reissu...

Q: How does the fixed cost per unit change as the level of activity (or cost driver) increases? Why?

A: Fixed cost refers to such overheads that are not directly related to the business and which do not v...

Q: A hotel pays the phone company $100 per month plus $.25 for each call made. During January 6,000 cal...

A: Since multiple sub-parts are posted only the first three will be answered. Kindly resubmit the quest...

Q: Distinguish between discretionary fixed costs and committed fixed costs.

A: Fixed Cost:   Cost which is not influenced by the production volume in short run is known as fixed ...

Q: Why can undue emphasis on labor efficiency variances lead to excess work in process inventories?

A: Labour efficiency variance is a tool which shows the variance in labour cost due to difference in st...

Q: Suppose that an oil well is expected to produce 12, 00,000 barrels of oil during its first productio...

A: Present worth is the present value of revenues over respective years. It is calculated by discountin...

Q: What does the term sales mix mean? How is a weighted-average unit contribution margin computed?

A: Contribution Margin is defined as the difference between the sales and the variable cost. In other w...

Q: Briefly explain what is meant by each of the following ethical standards for managerial accountants:...

A: Managers use managerial accounting for identifying, measuring, analysing, and interpreting informati...

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used i...

Q: Daybook Inc. budgeted production of 403,500 personal journals in 20Y6. Paper is required to produce ...

A: Paper required to produce journal = No. of journals x Paper required per journal = 403,500 journals ...