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When multiple production department rates are used to apply overhead to products, overhead costs are a. combined with all other support department costs using
When multiple production department rates are used to apply overhead to products, overhead costs are a. combined with all other support department costs using a single rate and then allocated to products with multiple rates. b. first directly traced or distributed to the products using multiple rates. c. expensed as period costs and direct labor and direct materials are traced to the products using multiple production department rates. d. first directly traced or distributed to support and production departments and then allocated to production departments based on support activity used by each production department.
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B First directly traced or distributed to the products using mu ltile rates The distribution channels do not just affect the price they influence other marketing decisions A distribution decision could give the product a unique position in the market The same brand may use different distribution channels based on pricing It is widely used in the distribution of consumer products like groceries drugs cosmetics etc It is quite suitable for smallscale producers whose product line is narrow and who require the expert services and promotional support of wholesalers Pricing of Multiple Products in Managerial Economics Multiple products are produced in variable proportions for a wide range of goods and services In the refining process crude oil gasoline diesel fuel heating oil and other products are produced in variable proportions Consider the following example of a multiproduct company The Monster company manufactures three products product X product Y and product Z The variable expenses and sales prices of all the products are given below The total fixed expenses of the company are 50000 per month For the coming month Consider the following example of a multiproduct company The Monster company manufactures three products product X product Y and product Z The variable expenses and sales prices of all the products are given below The total fixed expenses of the company are 50000 per month For the coming month Distribution is the process of getting your products to customers By choosing the right distribution channel ...
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Management Accounting Information for Decision-Making and Strategy Execution
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young
6th Edition
137024975, 978-0137024971
