Answer:
B. secondary markets
Explanation:
The secondary market is the market in which the original issue of securities does not take place that means only existing securities are taken place i.e traded like purchase and sale of securities but not new one only existing one.
Therefore according to the given options, option B is correct
Hence, the other options are wrong
Assume you have a margin account with a 50% initial margin. You purchase 100 shares of stock at $80 per share. The price increases to $100 per share. What is the net value of your investment (margin) now
Answer:
Net value of the investment (margin) is $6,000
Explanation:
The initial margin = (100 shares * $80) * 50%
The initial margin = $4,000
Increase in the Margin value = 100 shares* ($100-$80)
Increase in the Margin value = 100 shares * $20
Increase in the Margin value =$2,000
Net value of the investment (margin) = $4,000 + $2,000
Net value of the investment (margin) = $6,000
"One of the ten IG principles is a Continuous improvement. What is the importance of this principle to the organization program"
Answer:
the importance is to provide periodic program review and necessary adjustments against gaps and it short comings
Explanation:
Information governance is a full way of managing information in a corporation by the implementation of a series of processes, controls and roles. It can be simply said to be a process of managing information assets as this will cause a balance between security and usage.
continuous improvement is one of its 10 principles. And it simply means that programs in information governance have to go through continuous reviews and updates as doing such will help to reduce shortcomings.
You purchased a stock at a price of $46.55. The stock paid a dividend of $1.79 per share and the stock price at the end of the year is $52.45. What was the dividend yield
Answer:
3.84%
Explanation:
Calculation for dividend yield
Using this formula
Dividend Yield(%) = D / P0
Where,
D=$1.79
P0=$46.55
Let plug in the formula
Dividend Yield(%) =$1.79/$46.55
Dividend Yield(%) =0.0384*100
Dividend Yield(%) =3.84%
Therefore the dividend yield will be 3.84%
write at list 4 point about book and account
Explanation:
Bookkeeping is the recording of financial transactions, and is part of the process of accounting in business. Transactions include purchases, sales, receipts, and payments by an individual person or an organization/corporation. There are several standard methods of bookkeeping, including the single-entry and double-entry bookkeeping systems. While these may be viewed as "real" bookkeeping, any process for recording financial transactions is a bookkeeping process.
Contemporary businesses have embraced leaner corporate hierarchies, simultaneously relying on teams, eliminating division walls, and blurring the lines of authority. As teams and managers are abandoning the traditional command structure, excellent persuasive skills are becoming ever more important at work.To be persuasive, you must be respectful and _________a. Authentic b. Commanding c. Blunt d. Authoritative How has persuasion changed in the digital age? a. All businesses are in the persuasion business b. Persuasion is more complex and impersonal c. Persuasive techniques are more subtle and misleading d. Persuasive messages are slow to engage audiences e. Persuasive messages are targeted to very specific audiences
Answers:
Option a: authentic.
Option A-E of the second question are all correct.they are the characteristics of Persuasion in this digital age.
Option a. All businesses are in the persuasion business
Option b. Persuasion is more complex and impersonal
Option c. Persuasive techniques are more subtle and misleading
Option d: Persuasive messages are slow to engage audiences
Option e. Persuasive messages are targeted to very specific audiences
Explanation:
In business, persuasion is the ability to influence others especially in decision making. Persuasive skills are essential at work as teams and managers leaves traditional command structure and focus instead on influencing others. An individual must be genuinely respectful and authentic that is they are people who are very intuitive and will know any effort to manipulate them. Using authority as a way to persuade does not generate respect. Instead of a blunt,commanding, pushy hard-sell approach, persuaders play on emotions by using flattery, empathy.
Persuasive techniques in the digital age are more subtle and misleading due to the fact that blunt, pushy hard-sell approach, persuaders play on emotions by using flattery, empathy, nonverbal cues, e. t. c which can be more subtle and misleading
A firm pays a current dividend of $1.00 which is expected to grow at a rate of 5% indefinitely. If current value of the firm’s shares is $35.00, what is the required return based on the constant growth dividend discount model (DDM)?
Answer:
8%
Explanation:
A firm pays a current dividend of $1
The growth rate is 5%
= 5/100
= 0.05
The current value of the firm's share is $35
Therefore, the required return using the constant growth discount dividend model can be calculated as follows
K = 1×(1+0.05)/35 + 0.05
K= 1×1.05/35 + 0.05
= 1×0.03 + 0.05
= 0.03 + 0.05
= 0.08×100
= 8%
Hence the required return is 8%
Paper Express Company has a balance sheet which lists $85 million in assets, $40 million in liabilities, and $45 million in common shareholders' equity. It has 1,400,000 common shares outstanding. The replacement cost of the assets is $115 million. The market share price is $90.What is Paper Express's market value per share?
Answer:
$90
Explanation:
Based on the information given we were told that after the assets was replaced at the amount of $115 million, the Company market share price was the amount of $90 which simply means that Paper Express's market value per share will be the market share price of the amount of $90.
Therefore Paper Express's market value per share will be $90.
Suppose annual inflation rates in the U.S. and Mexico are expected to be 6% and 80%, respectively, over the next several years. If the current spot rate for the Mexican peso is $.005, then the best estimate of the peso's spot value in 3 years is Group of answer choices $.00276 $.01190 $.00321 $.00102
Answer:
$.00102
Explanation:
The forward peso's spot value in 3 years can be computed using the below formula:
forward exchange rate=current spot rate*(1+US inflation)^3/(1+Mexican inflation)^3
current spot rate=$.005,
US inflation rate is 6%
Mexican inflation rate is 80%
forward exchange rate=$.005,*(1+6%)^3/(1+80%)^3
forward exchange rate(in 3 years)=$0.00102
based on the characteristics of constructive conflicts, which of the following would help a manager create constructive conflicts during a debate?
1. Support the weaker members during a debate
2. Explain conflict in terms of interpersonal incompatabilities
3. Support the stronger memebrs during the debate
4. Keep the debate focused on the issue
5. Maintain competitive oreientation on the debate
Answer:
The correct answer is: 4. Keep the debate focused on the issue
Explanation:
A constructive conflict can be understood as different points of view that arise in an organization on the same issue.
Therefore, it can be a great way for the organization to enrich itself with new ideas, thoughts and different ways of carrying out actions that will help the organization to achieve its objectives and goals.
Therefore, the most suitable alternative for building a constructive conflict during a debate is for the manager to always focus on the issue discussed, and not for the debate to turn to support due to interpersonal relationships.
Debra and Merina sell electronic equipment and supplies through their partnership. They wish to expand their computer lines and decide to admit Wayne to the partnership. Debra's capital is $200,000, Merina's capital is $160,000, and they share income in a ratio of 3:2, respectively.Required:Record Wayne's admission for each of the following independent situations:a. Wayne directly purchases half of Merina's investment in the partnership for $97,000.b. Wayne invests the amount needed to give him a one-third interest in the partnership's capital if no goodwill or bonus is recorded.
Answer:
a. Merina's captal is $160,000. Half would be $80,000.
Entry;
DR Merina, Capital ..................................................................$80,000
CR Wayne, Capital ....................................................................................$80,000
(To record purchase of half of Merina Capital)
b.
DR Cash......................................................................$180,000
CR Wayne, Capital.........................................................................$180,000
(To record Wayne investment)
Working
The current Capital amount is;
= 200,000 +160,000
= $360,000
If Wayne joins and adds to this such that he owns 1/3 then;
2/3x = 360,000
x = 360,000/2/3
x = $540,000
Wayne's share would be;
= 1/3 * 540,000
= $180,000
The journal entries that would take place will take effect as A- A debit in Merina's capital amount and Cash account as $17000 and a credit effect in Wayne's capital account. The amount of debit and credit will be $97000.
And for B- There will be Debit in Cash account effecting a credit in The Wayne's capital account. The amount effecting the debit and credit side will be $180,000.
The journal entries are added in the images attached to the answer. The entries would take place in the journal entries on the respective date of their occurrence.( Image attached below).When Wayne is introduced as partner for one third share the calculation of the amount of his capital would be shown as considering the capital as x. The capital by existing partners is $360000. (Image below).,[tex]\dfrac{2}{3}x\ = 360000[/tex]
[tex]x= \dfrac {360000}{\dfrac{2}{3}}[/tex]
Now the value of x will be calculated as
[tex]x= \dfrac{540000}{3}[/tex]
[tex]x=180000[/tex]
Therefore Wayne's capital will be calculated as $180,000, so he will be required to bring in additional $180,000 capital in the firm for getting one third share in the profits and losses of the company.Hence, the correct statements for A will be that Wayne pays $97000 which will be divided in Merina's capital and cash accounts in the proportion of $80000 and $17000 respectively.
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Jax Recording Studio purchased $8,200 in electronic components from Music World. Jax signed a 90-day, 10% promissory note for $8,200. Music World's journal entry to record the sales transaction is:
Answer:
World's journal entry to record the sales transaction is:
Note Receivable ; Jax Recording Studio $8,200 (debit)
Sales Revenue $8,200 (credit)
Explanation:
Music World is the seller and must recognize Revenue following the sale.The Revenue is initially recognized at the value of sale of $8,200. Music World must also recognize an Asset on the promissory note signed to the value of $8,200.
Cash balance, September 1 (from a summer job) $7,560
Purchase season football tickets in September 100
Additional entertainment for each month 260
Pay fall semester tuition in September 4,100
Pay rent at the beginning of each month 370
Pay for food each month 210
Pay apartment deposit on September 2 (to be returned December 15) 500
Part-time job earnings each month (net of taxes) 940
Personal Budget:
At the beginning of the 2016 school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:
Required:
Prepare a cash budget for September, October, November, and December.
Answer:
Katherine Malloy
Personal Cash Budget for September, October, November, and December:
September October November December
Balance $7,560 $2,960 $3,060 $3,160
Apartment deposit return 500
Earnings (net of taxes) 940 940 940 940
Borrowing 340
Total Cash Receipts $8,500 $3,900 $4,000 $4,940
Season football tickets 100
Additional entertainment 260 260 260 260
Semester Tuition 4,100 4,100
Rent 370 370 370 370
Food 210 210 210 210
Apartment deposit 500
Total cash payment $5,540 $840 $840 $4,940
Balance $2,960 $3,060 $3,160 $0
Explanation:
Katherine Malloy's cash budgets for the months of September, October, November, and December give some snapshots of her cash receipts and payments, including the planned borrowing of no less than $340 that she must arrange in December in order to pay for her spring semester tuition on December 31. From the budget, she gets a clearer picture of her cash needs, receipts and expenses. She is comfortable from September till the end of the year. But, Katherine must arrange for some cash receipts, either in student loan or support or get another part-time work to increase her income, to enable settle her tuition in December.
Manufacturing overhead—multiple application bases Staley Toy Co. makes toy flutes. Two manufacturing overhead application bases are used; some overhead is applied on the basis of machine hours at a rate of $5.60 per machine hour, and the balance of the overhead is applied at the rate of 240% of direct labor cost.
Required:
a. Calculate the cost per unit of October production of 4,200 toy flutes that required
1. Raw materials costing $490.
2. 21 direct labor hours costing $357.
3. 36 machine hours.
b. At the end of October, 3,870 of these toy flutes had been sold. Calculate the ending inventory value of the toy flutes still in inventory at October, 31.
Answer:
a. $ 0.45
b. $148.50
Explanation:
Production Cost Schedule for 4,200 toy flutes
Raw materials costing $490.00
Direct Labor $357.00
Overheads ($5.60 × 36) $201.60
Overheads ($357 × 240%) $856.80
Total Cost $1,905.40
Cost per unit = Total Cost / Total Number of Units produced
= $1,905.40 / 4,200
= $ 0.45
Closing Inventory = Units Left × Cost per unit
= (4,200 - 3,870) × $ 0.45
= 330 × $ 0.45
= $148.50
Brodrick Company expects to produce 21,200 units for the year ending December 31. A flexible budget for 21,200 units of production reflects sales of $508,800; variable costs of $63,600; and fixed costs of $142,000. Assume that actual sales for the year are $587,200 (26,300 units), actual variable costs for the year are $113,900, and actual fixed costs for the year are $137,000. Prepare a flexible budget performance report for the year.
Answer:
Flexible budget performance report for the year
Flexible budget Actual Variance Fav/Unf
Sales 631,200 587,200 44,000 UNF
Variable cost (78,900) (113,900) 35,000 F
Contribution 416,000 368,000 48,000 UNF
margin
Fixed cost (142,000) (137,000) 5000 UNF
Net operating 274,000 231,000 43,000 UNF
income
Working:
a. At flexible budget, selling price per unit = $508,800 / 21,200 = $24 per unit . Total sales =26,300 *24 = $631,200
b. Variable cost per unit = $63,600 / 21,200 = $3 per unit . Total cost = 3 * 26,300 = 78,900
A seller has accepted another offer, but your client doesn't want to give up. Even now, she can submit an offer to the seller, called a:
Answer: b. backup offer
Explanation:
A backup offer is one that is made when an offer has already been made by another. With a backup offer, the person offering it is acknowledging that someone else has made another offer that was accepted but they still offer this in case the accepted offer falls through for whatever reason.
If the seller accepts this offer, they will have a contract with the person offering that legally obliges them to sell the good in question to the person offering if the current offer is not honored.
During group meetings, Douglas is never able to discuss his idea for reducing energy usage in the office. He has a detailed, well-thought out plan for how to accomplish this. He thinks it is a really great idea that can save the company money. But during the meetings, he does not even get a chance to share his ideas. Douglas should focus his efforts on _______________.
Answer: B) controlling the agenda
Explanation: During group meetings, Douglas is never able to discuss his idea for reducing energy usage in the office. He has a detailed, well thought out plan for how to accomplish this. He thinks it is a really great idea that can save the company money. But, within the current context, he does not even have a chance to share his ideas. Douglas should focus his efforts on ________. A) researching his idea more B) controlling the agenda C) finding out how his employees view him D) asking outside sources to validate his idea
Douglas would better benefit from controlling the agenda of the meeting so he is better able to pitch forward his well thought out idea concerning reducing energy usage in the office.
Douglas should focus his efforts on controlling the agenda.
What is controlling the agenda?Agenda manage can be described because the capacity to affect the way wherein options enter collective selection-making. Even as agenda control is important generally, it plays a unique position inside the rational-preference-primarily based concept of democratic establishments (or the “new institutionalism”).
What is an agenda in a negotiation?A proper agreed-upon list of dreams to be accomplished or objects to be discussed in a particular order at some stage in an assembly or negotiation. Agendas may be formal and apparent, or casual and diffused in negotiations. A negotiation timetable can be used to control the negotiation assembly.
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Vaughn Manufacturing is constructing a building. Construction began in 2020 and the building was completed 12/31/20. Vaughn made payments to the construction company of $3114000 on 7/1, $6456000 on 9/1, and $5950000 on 12/31. Weighted-average accumulated expenditures were
Answer:
$3,709,000
Explanation:
7/1 Time weighted amount = $3,114,000 * 6/12 = $1,557,000
9/1 Time weighted amount = $6,456,000 * 4/12 = $2,152,000
12/31 Time weighted amount = $5,950,000 * 0/12 = $0
Weighted-average accumulated expenditures = 7/1 Time weighted amount + 9/1 Time weighted amount + 12/31 Time weighted amount
Weighted-average accumulated expenditures = $1,557,000 + $2,152,000 + 0
Weighted-average accumulated expenditures = $3,709,000
) A company finds that consumer demand quantity changes with respect to price at a rate given by D'(p) = - 2000 p 2 . Find the demand function if the company knows that 834 units of the product are demanded when the price is $5 per unit.
Answer:
D(p) = 2,000 ÷ Price + 434
Explanation:
The computation of the demand function is shown below:-
Number of units of the product = 3000 ÷ Price + C
834 = 2,000 ÷ $5 + C
834 = 400 + C
C = 834 - 400
C = 434
So, D(p) = 2,000 ÷ Price + 434
Therefore for computing the demand function we simply applied the above formula also we considered all the given information mentioned in the question
solve the equation
(2x-5x)(4y-6x)
[tex] \sf \: (2x - 5x)(4y - 6x)[/tex]
Use distributive property.
[tex] \sf \: 2x(4y - 6x) - 5x(4y - 6x) \\ \sf \: = 8xy - 12 {x}^{2} - 20xy + 30 {x}^{2} \\ \sf \: = 8xy - 20xy - 12 {x}^{2} + 30 {x}^{2} \\ = \boxed{ \bf \: - 12xy + 18x ^{2} }[/tex]
The solution for the equation is - 12xy + 18x².
You can further simplify the equation formed as - 6x (2y - 3x).
Hope it helps.
RainbowSalt2222
Answer:
18x²-12xy
Explanation:
(2x-5x)(4y-6x)
8xy-12x²-20xy+30x²
18x²-12xy
Standard rate per direct labor-hour $ 2 Standard direct labor-hours for each unit produced 3 Units manufactured 1,000 Actual direct labor-hours worked during the month 3,300 Total actual variable manufacturing overhead $ 6,600 Knowledge Check 01 Assume that direct labor-hours is used as the overhead allocation base. What is the variable overhead efficiency variance
Answer:
Variable overhead efficiency variance= $600 unfavorable
Explanation:
Giving the following information:
Standard rate per direct labor-hour $2
Standard direct labor-hours for each unit produced 3
Units manufactured 1,000
Actual direct labor-hours worked during the month 3,300
To calculate the variable overhead efficiency variance, we need to use the following formula:
Variable overhead efficiency variance= (Standard Quantity - Actual Quantity)*Standard rate
Variable overhead efficiency variance= (1,000*3 - 3,300)*2
Variable overhead efficiency variance= $600 unfavorable
Issuing Stock
Professional Products Inc., a wholesaler of office products, was organized on February 5 of the current year, with an authorization of 50,000 shares of preferred 2% stock, $40 par and 1,000,000 shares of $8 par common stock. The following selected transactions were completed during the first year of operations:
Journalize the transactions.
Feb. 5. Issued 600,000 shares of common stock at par for cash.
Feb. 5
Feb. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Feb. 5
Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively.
For a compound transaction, if an amount box does not require an entry, leave it blank.
Apr. 9
June 14. Issued 30,000 shares of preferred stock at $53 for cash.
For a compound transaction, if an amount box does not require an entry, leave it blank.
June 14
Answer:
Feb. 5. Issued 600,000 shares of common stock at par for cash.
Dr Cash 4,800,000
Cr Common stock 4,800,000
Feb. 5. Issued 1,500 shares of common stock at par to an attorney in payment of legal fees for organizing the corporation.
Dr Organization costs 12,000
Cr Common stock 12,000
Apr. 9. Issued 45,000 shares of common stock in exchange for land, buildings, and equipment with fair market prices of $100,000, $310,000, and $85,000 respectively.
Dr Land 100,000
Dr Buildings 310,000
Dr Equipment 85,000
Cr Common stock 360,000
Cr Additional paid in capital: common stock 135,000
June 14. Issued 30,000 shares of preferred stock at $53 for cash.
Dr Cash 1,590,000
Cr Common stock 240,000
Cr Additional paid in capital: common stock 1,350,000
Countess Corp. is expected to pay an annual dividend of $4.63 on its common stock in one year. The current stock price is $74.11 per share. The company announced that it will increase its dividend by 3.75 percent annually. What is the company's cost of equity?
Answer:
r = 0.099974 or 9.9974% rounded off to 10.00%
Explanation:
Using the constant growth model of DDM we calculate the price of a stock today which is expected to pay a dividend which increases at a constant rate through out. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price under this model is,
P0 = D1 / r - g
Where,
r is the required rate of return or cost of equityg is the constant growth rate in dividendsPlugging in the available values in the formula, we calculate r to be,
74.11 = 4.63 / (r - 0.0375)
74.11 * (r - 0.0375) = 4.63
74.11r - 2.779125 = 4.63
74.11r = 4.63 + 2.779125
r = 7.409125 / 74.11
r = 0.099974 or 9.9974% rounded off to 10.00%
When entering a foreign market, Montain stream brewery purchases a manufacturing plant and sets up a new brewery. Instead of using their signature name, the product produced in the foreign market is labeled as “Everest Prak Brew” This is an example of?
it's an example of brand localization
Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform. cousrse hero
Answer:
A promise to deliver a deed
Explanation:
The term, 'strict performance' is used to describe a contract between two parties. A contract is an agreement between two parties, and it is legally binding. When discharging contracts involving services, 'substantial performance' is required. For example, if I tell a painter to paint my house blue except for the kitchen and storeroom which should be painted white, and he does accordingly but failed in painting the kitchen white, he has performed substantially even though there was a minor breach. The consequences of which would be borne by him.
'Strict performance' is required in contracts where the terms are stated in express terms and the standards are very high. A 'deed' is such a contract because it is a document specifying the legal rights of a person or the ownership of a property. It requires the signatures of the two parties. Therefore, strict performance and adherence to the contractual deed are required.
Wentworth's Five and Dime Store has a cost of equity of 11.4 percent. The company has an aftertax cost of debt of 5 percent, and the tax rate is 35 percent. If the company's debt–equity ratio is .74, what is the weighted average cost of capital?
Answer:
WACC = 6.66 %
Explanation:
Weighted average cost of capital is the average cost of all of the long-term types of finance used by a company weighted according to the that amount of finance used in relation to the total pool of fund
WACC = (Wd×Kd) + (We×Ke)
After-tax cost of debt = Before tax cost of debt× (1-tax rate)
Kd-After-tax cost of debt = 5%
Ke-Cost of equity = 11.4%
Wd-Weight f debt -74%
We-Weight of equity = 26%
WACC = (0.74× 5%) + (0.26 × 11.4%) = 6.66 %
WACC = 6.66 %
Which of the following is not a global economic forum of nations?
G-8
O G650
+ 5
G-20
Answer:
c
Explanation:
answer is c
Suppose that in a competitive output market, firms hire labor from a competitive labor market (so that the profit maximization conditions for hiring labor are as we discussed in class). If the supply of this kind of labor increases, we would expect a(n) _____________.
A. increase in equilibrium wage, W, and increase in equilibrium quantity of labor, L, employed.
B. an increase in W and a decrease in L.
C. A decrease in W and a decrease in L.
D. A decrease in W and no change in L.
E. None of the above.
Answer:
e
Explanation:
When supply of labour increases, the supply curve shifts outward. As a result there would be an increase in equilibrium quantity but a decrease in wages
Refer to the following lease amortization schedule. The five payments are made annually starting with the inception of the lease. A $2,000 bargin purchase option is exercisable at the end of the five-year lease. The asset has an expected economic life of eight years.
Lease Payment Cash Payment Effective Interest Decrease in Balance Balance
34,600
1 8,000 ?? ?? 26,600
2 8,000 2,660 5,340 21,260
3 8,000 2,126 5,874 15,386
4 8,000 1,539 6,461 8,925
5 8,000 ?? ?? ??
6 2,000 182 1,818 0
What is the effective annual inerest rate?
A. 9%
B. 10%
C. 11%
D. 20%
Answer:
B. 10%
Explanation:
The computation of the effective annual interest rate is shown below:-
Effective annual interest rate = Lease payment third effective interest ÷ Lease payment second balance × 100
= $2,126 ÷ $21,260 × 100
= 10%
Therefore for computing the effective annual interest rate we simply applied the above formula.
Hence the correct option is B.
Akram owns a small farm. He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The income of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbour’s farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares
Question Completion:
Requirement. Identity two types of short-term finance Akram could use when the farm income is low
Answer:
Akram's Farm
Akram's farm can make good use of the following short-term financing sources:
1. Akram's farm can use Accounts Payable to provide short-term trade finance when the farm buys farm inputs, equipment, and other supplies on credit. The farm's Accounts Payable can provide interest-free trade loans by allowing the farm to take longer time to settle the suppliers. But, the farm should not miss out on cash discounts - an important source of trade finance.
2. Akram's farm can generate finances by ensuring early collections of the Accounts Receivable. Akram's farm can also go ahead and borrow on the accounts receivable through short-term bank loans guaranteed on the accounts. The farm can also factor the accounts receivable by selling them to factoring and finance houses for less.
Explanation:
Akram's farm is still a small farm that is not yet formed as a company. The immediate concentration is growing the entity and starting the processes for changing its corporate status so that it can take advantage of the sources of finance available to companies.
What is the difference between full absorption costing and variable costing?A. In full absorption costing, all of the non-manufacturing costs are expensed. In variable costing, all of the non-manufacturing expenses are included in the cost of the product.B. In full absorption costing, fixed manufacturing overhead is expensed. In variable costing, fixed manufacturing overhead is included in the cost of the product.C. In full absorption costing, fixed manufacturing overhead is included in the cost of the product. In variable costing, fixed manufacturing overhead is expensed.D. Variable costing must be used for external financial reports while full absorption costing can only be used for internal reporting.
Answer: C. In full absorption costing, fixed manufacturing overhead is included in the cost of the product. In variable costing, fixed manufacturing overhead is expensed.
Explanation:
Full absorption costing accounts for all the costs involved in making a product including the indirect and the direct costs. That means both variable costs like direct materials and direct labor as well as fixed costs like rent, and insurance are included in the cost of the product.
Variable costing on the other hand expenses fixed manufacturing overhead separately. As a result, Full absorption has a higher cost of inventory than does Variable costing.