Bell's Shop can make 1,000 units of a necessary component with the following costs: Direct Materials $72,000
Direct Labor 18,000
Variable Overhead 9,000
Fixed Overhead ?
The company can purchase the 1000 units externally for $ 39000. The unavoidable fixed costs are $ 2000 if the units are purchased externally. An analysis shows that at this external price, the company is indifferent between making or buying the part. What are the fixed overhead costs of making the component?
A. $24,000.
B. $12,000.
C. $18,000.
D. Cannot be determined.

Which of the following is a function performed by market prices? a. market prices communicate information to buyers and sellers. b. market prices coordinate the decisions of buyers and sellers. c. market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production. d. all of the above are functions performed by market prices.

Activity-based costing (abc) is not truly a cost collection mechanism as much as it is an inventory valuation method. the main purpose for implementing an activity-based cost system is to try to overcome some of the cost distortions that occur in traditional costing from product differences when there are variations in size and complexity. however, one of the disadvantages of utilizing abc is that the additional information gathering necessary to implement costing with that level of detail might be beyond the reach of some companies with resource or financial constraints. with this in mind, what kinds of industries or companies do you think would benefit most from using activity-based costing and why? in designing or modifying an accounting system to capture appropriate costs for abc, what considerations do you think would need to be made?

Lucas is planning a distribution strategy for his business. he is considering using direct marketing, direct selling, and automatic vending, which are all examples of retailing. select one: a. off-premise b. portfolio c. nonstore d. off-price e. direct