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3 years ago

true or false An agent may continue to represent the principal even after the agency relationship is terminated.

Business

1 answer:

Annette [7]3 years ago

7 0

Answer:

False

Explanation:

Agency refers to a kind of agreement wherein the first party, known as the Principal confers a right on the second party, called an agent, to act on his behalf or as per his directions.

It establishes a fiduciary responsibility i.e that of a legal trust between the parties.

Once the agency agreement is terminated, the relationship between a principal and an agent ceases. Thereafter, the agent cannot continue representing the principal and if he does, he shall be held personally liable for such acts which result into any damage or loss to a third party.

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Wooten & McMahon Enterprises produces a product with the following per-unit costs: Direct materials $13.00 Direct labor 8.80

Setler [38]

Answer:

b.$5,912.50

Explanation:

The computation of the operating income is shown below:

= Sales - Direct materials cost - Direct labor cost - Manufacturing overhead cost - Total selling and administrative expense

where,

Sales = Number of units × selling price per unit

= 825 units × $74.80

= $61,710

Direct materials cost = Number of units × Direct materials per unit

= 825 units × $13

= $10,725

Direct labor cost = Number of units × Direct labor per unit

= 825 units × $13

= $7,260

Manufacturing overhead cost = Number of units × Manufacturing overhead per unit

= 825 units × $16.50

= $13,612.50

And, the Total selling and administrative expense is $24,200

Now put these values to the above formula

So, the value would equal to

= $61,710 - $10,725 - $7,260 - $13,612.50 - $24,200

= $5,912.50

6 0

3 years ago

On November 1, 2021, New Morning Bakery signed a $191,000, 6%, six-month note payable with the amount borrowed plus accrued inte

rosijanka [135]

Answer:

$196,730

Explanation:

The note payable signed has an interest rate of 6% per year. Since the amount is paid back in 6-months, only half a period should be considered when calculating interests due. The total amount that New Morning Bakery should pay back on May 1, 2022 is given by:

$A =\$191,000*(1+(0.06*0.5))\\A=\$196,730$

The company will need to pay $196,730.

8 0

3 years ago

Say the marginal tax rate is 20 percent and that government expenditures do not also that the economy is at potential output and

Readme [11.4K]

<u>Solution and Explanation:</u>

a) The deficit is structural deficit, not cyclical deficit

b) Structural deficit is $450 billion

Revenue less than outlays; the GDP = Potential GDP

cyclical - during a recession , Structural - normal times

This is the budget deficit at potential GDP

Structural deficit = Total Government deficit - Cyclical Deficit

Government expenditures do not change with output

c) the deficit is both structural and cyclical

200 billion below potential; at potential output it will be 200 billion higher

Cyclical deficit = $200 billion

Structural = 450 - 200 = 250

d) Cyclical surplus = $350 billion

Structural deficit = $100 billion

e) Structural as normal stabilization policies will not remove a structural deficit

5 0

2 years ago

eally Great Corporation manufactures industrial−sized landscaping trailers and uses budgeted machine−hours to allocate variable

Anton [14]

Answer:

$7.60 per unit of output

Explanation:

Budgeted output units 51,000 units

Budgeted machine−hours 10,200 hours

Budgeted variable manufacturing overhead costs for 51,000 units $387,600

budgeted variable overhead cost per unit of output = $387,600 / 51,000 units = $7.60 per unit of output

In this case, the applied variable overhead rate = 35,750 units x $7.60 = $271,700, which would have been under-applied since the actual variable overhead costs were much higher, $328,900.

4 0

3 years ago

As a private limited firm dealing with garment manufacturing, you have little cash in hand but considerable business potential.

Alborosie

Answer:

A private limited firm refers to a corporation. A corporation’s internal sources of financing are mostly limited to its retained profits, and money realized from the sale of its assets. In case of the given example, because the company does not have enough cash on hand, it will have to rely on several external sources of financing. The most important source of procuring financing for the company is a bank loan. Thus, the company can raise money from institutions such as banks or other creditors in the form of loans. The company will need to repay loans in the future, and therefore the company will record this as a liability in its accounts. However, these ways of procuring money would help the company arrange $15,000 in order to purchase the fabric and other accessories.

The sources of financing will remain the same even in the case of a sole proprietorship; that is, retained earnings or loans from external sources such as banks. However, in the case of a public limited company, the answer would change. In the case of a public limited business, it has another option of raising financing through the issue of common or equity shares.

4 0

3 years ago