The following are the respective costs and revenues incurred by Company ABC COSTS for months 1, 2, 3 : P80,000.00, P90,000.00, P100,000.00. REVENUES for months 2, 3, 4: P70,000.00, P95,000.00, P105,000.00. ABC wants to know from you if it has made any profit or not. What will your answer be? Fully Explain. Use i = 12 % compounded yearly.

The following are the respective costs and revenues incurred by Company ABC COSTS for months 1, 2, 3 : P80,000.00, P90,000.00, P100,000.00. REVENUES for months 2, 3, 4: P70,000.00, P95,000.00, P105,000.00. ABC wants to know from you if it has made any profit or not. What will your answer be? Fully Explain. Use i = 12 % compounded yearly.

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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