Answer:
c)
Explanation:
The costumer has no spouse or dependents. This negates the value of the death benefit. The founds has no liquid due to the surrender fees, and there is also 10% penalty on withdrawals before age 59.5
Answer:
Activity-based department costs
Explanation:
Activity Based Costing refers to a method : that allocates the cost of activities in organisation among produced goods & services, in proportion to that activity consumed by each good & service.
The model is a better representative of particular goods & services production costs, unlike conventional cost methods - that divide the activity cost among each good or service equally. It assigns more indirect (overhead) costs into direct costs compared to Conventional Costing.
So, the approach states that overhead to products, supporting department costs - are referred to as <u>Activity Based</u> Department Costs
Answer:
The amount of the cash flow to creditors is $74
Explanation:
Beginning of the year:
Long-term debt = $308
Total debt = $339
At the end of the year:
Long-term debt = $269
Total debt = $349.
Interest = $35
Net new borrowing = Ending Long-term debt - Beginning Long-term debt
= $269 - $308
= ($39)
Cash flow to creditors = Interest paid - Net new borrowing
= $35 - ($39) = $ 74
Explanation:
<u>5.1 Discuss the role of personal selling in promoting products. What advantages does personal selling offer over other forms of promotion?</u>
Personal selling is a traditional sales method that consists of a more personalized service and a more efficient product promotion compared to other forms of promotion. This is due to the fact that, in a personal sale, there is the direct influence of the seller to explain the functionalities and characteristics of a product, which is usually done using sales and negotiation techniques that directly influence the buyer to feel the need for the product that is being promoted. The advantages of personal selling as opposed to other types of promotion, is the possibility of reducing the time and effort of purchase, since in this type of sale, the seller goes to the customer to offer the product.
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<u>5.2 What are the major advantages of personal selling to the company selling a product? What are the advantages to the person or company buying the product?</u>
The biggest advantages of personal selling for the company that sells a product is the greater possibility of having a closed purchase, since the potential sales are made with your potential customers. There is also a decrease with other types of product promotion, which can be costly, such as advertising an advertisement on television, and which may not generate the expected goal of increasing product sales.
The advantages for the person or company that buys the product is the possibility of knowing and seeing the functionality of the product before purchasing and the possibility of negotiating and providing meaningful feedback, which can influence the seller to make the sales proposal more flexible by making it more attractive to the customer. Personal selling also creates value for the customer, as the service is personalized, based on their profile, characteristics, desires and needs.
Answer:
A)If interest rates decline, the prices of both bonds will increase, but the 15-year bond would have a larger percentage increase in price.
TRUE
As it has more time to maturity it will have a higher time expose to the rate therefore, will be more volatile against the rate fluctuations
Explanation:
The 10-year ond is issued at premium, above par as the coupon rate 12% is higher than market rate 10%. Each year will decrease the market value to come closer to maturity date.
The 15-year ond is issued at discount, below par as the coupon rate 8% is lower than market rate 10%. Each year will increase the market value to come closer to maturity date.
