Answer:
Quarterly dividend (D) = $0.75
Annual return (Ke) = 10.5% = 0.105
Quarterly return = 0.105/4 = 0.02625
Current market price = <u>Quarterly dividend</u>
Quarterly return
=<u> $0.75</u>
0.02625
= $28.57
Explanation:
Current market price is the ratio of quarterly dividend paid divided by quarterly return.
Answer:
$0
Explanation:
According to US GAAP the reduction in the value of the asset due to a decrease in the fair value. It means when fair value of the asset is reduced than the book value of the asset.
Amortized Cost / Book value = $50,000
Market Value = $53,000
Discounted Value = $51,000
There is no Impairment loss on this asset as the fair market value is more than the book value of the asset.
Answer:
b. measurement error.
Explanation:
Measurement error is defined as the difference in the provided information and the desired information. It is also known as observational error. The value that is measured and the real value that brings out the differences. These errors can emerge and grow rapidly. Random error and systematic error are the two distinct parts of measurement errors.
That statement is false.
Variable cost is the type of cost that incurred everytime a product is being produced. In flexible budget, the total budget will be adjusted to the amount of changes in volume or activity, which make the variable cost pretty much the same even though the activity is declined
Answer:
D. General Office Administrative Costs
Explanation:
A Profit Center
A profit center represents a business unit or department in an organisation that generates revenue, profits or losses.
A Direct Fixed Cost
A direct fixed cost represents a cost that is directly traceable to a product, a service or to a center. In this question, the consideration is to identify the option that does not represent a cost directly traceable or directly incurred by the profit center.
General Office Administrative Costs
In accounting, the rule of the thumb is that general office administrative costs are not directly attributable to the production of goods or services. This cost represents the costs incurred to carry out a business' day to day operations including building rent, office supplies and subscriptions among others. The right option is therefore, the General Office Administrative Costs. Put differently, it represents costs that the business will incur even without the profit center, department or unit.
The other options from are costs that are directly related to the profit center and should not be incurred if the profit center does not exist. For instance, the Manager's salary will not be incurred if there is no center and there will be no depreciation on center's equipment if the center does not exist in the first place.