The given statement is TRUE
Explanation:
The global overhead rate is a standard overhead rate used by a company to transfer all of its overhead cost for production to goods or objects of cost. It is most widely used with simple cost models in smaller businesses.
In fact, the typical company prevents the use of a single overhead rate throughout the whole plane, instead using a small number of separately allocated cost pools with different overhead rates. In this way, the overall assignment is improved, but the time necessary to close the books is increased. There is a balance between a larger transparency effort to track and distribute multiple expense pools and the improved consistency of this additional effort in the financial statement.
Answer:
(B) mission statement
Explanation:
A mission statement broadly defines an organization's purpose—what it is seeking to achieve from its activities—identifies what is unique or important about its products to its employees and customers, and also distinguishes or differentiates the organization in some ways from its competitors.
Answer:
REV Co. has made disclosure in notes to the financial statement section. The disclosures include the details about related party transaction which was carried out by the brother of Chief Operating Officer. It is ensured that the transaction was completed on arm's length.
Explanation:
Disclosures are mandatory for any company which is listed. The companies provide details of specific transactions in Notes to the Financial statements. These additional information provides details of transaction to the shareholders and removes any ambiguity in the transaction. The purpose of disclosures is to ensure the shareholders that the company has not incurred any fraudulent activity in certain transactions and all transactions are fair and complies with International Accounting Standards.
Answer:
The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is $10,200.
Explanation:
In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is
, we have to make the following calculations.
First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100
Hence, First year preferred dividend = $9,100-$8,000 = $1,100
Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.
Answer:
(1) Payback period is 4.588 years or 4 years and 215 days
(2) 5.13%
Explanation:
(1)
Payback period is the time period in which Initial Investment made in the project is recovered in the form of cash inflows.
Payback period = Initial Investment / Annual net cash flow
Payback period = $390,000 / $85,000 = 4.588 years = 4 years and 215 days
(2)
As per given data
Net Income = $20,000
Initial Investment = $390,000
Annual rate of return is the ration of net income to the investment made in the project.
Annual rate of return = Annual net Income / Initial Investment
Annual rate of return = ($20,000 / $390,000) x 100 = 5.13%
