Ask Question
BusinessBusiness
20 June, 02:30

The basic problem with the average-cost approach is that it:

A. does not consider cost variations at different levels of output.

B. does not consider historical values.

C. does not add a reasonable markup to the average cost of a product.

D. is not commonly used.

E. is a complex method

+1
Answers (1)
  1. 20 June, 03:29
    0
    The correct answer is (A)

    Explanation:

    Average cost approach is utilised to analyse the average cost of inventory available for sale. There are various advantages of using average cost techniques, but at the same time it has few limitations. Average cost methods do not account for the cost variation in different level of outputs. Cost variation is important to account for as it can change the overall cost of estimations, and cost averages.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The basic problem with the average-cost approach is that it: A. does not consider cost variations at different levels of output. B. does ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The trial balance before adjustment of Pina Inc. shows the following balances. Dr. Cr. Accounts Receivable $97,400 Allowance for Doubtful Accounts 3,300 Sales Revenue (all on credit) $643,200 Give the entry for estimated bad debts assuming that the
Answers (1)
Which combination of events could have caused the equilibrium interest rate to fall and the equilibrium quantity of loanable funds (both borrowed and lent) to rise a. A baby boom begins, investor confidence rises. b.
Answers (1)
You are climbing a stair case. It takes n steps to reach to the top. Each time you can either climb 1 or 2 steps. In how many distinct ways can you climb to the top?
Answers (1)
Why did merchants and craftsman form guilds?
Answers (1)
Assume the Murtha Company reported the following adjusted account balances at year-end. 2016 2015 Accounts Receivable $1,560,200 $1,210,920 Allowance for Doubtful Accounts (79,000) (64,600) Accounts Receivable, Net $1,481,200 $1,146,320 Assume the
Answers (1)
New Questions in Business
Selma deposited a paycheck for $378.42. She'll use the check register to record her transaction. What will be her new balance? $2,257.99 $2,337.06 $3,014.83 $3,057.31
Answers (2)
A company recently paid out a $4 per share dividend on their stock. Dividends are projected to grow at a constant rate of 5% into the future, and the required return on investment is 8%.
Answers (1)
What is the average tax rate for a firm with taxable income of $118,740 in 2017? Taxable Income Tax Rate $ 0 - 50,000 15 % 50,001 - 75,000 25 75,001 - 100,000 34 100,001 - 335,000 39 Group of answer choices 34.87 percent 39.00 percent 24.
Answers (1)
State chartered banks are required to become members of the federal reserve system. a. True b. False
Answers (1)
Freddie's Market offers customers tissues, canned goods, napkins, and various detergents in basic packaging with no identified brand.
Answers (1)
Home » Business » The basic problem with the average-cost approach is that it: A. does not consider cost variations at different levels of output. B. does not consider historical values. C. does not add a reasonable markup to the average cost of a product. D.
Sign Up Forgot Password?