Answer:
One of the great dangers in allocating common fixed corporate costs is that such allocations can make a product line look less profitable than it really is.
Explanation:
Therefore, care must be exercised so that a product line is not eliminated because the common fixed costs have been allocated to it such that it becomes unprofitable. This is why it is necessary to identify activity cost pools into which such fixed costs can be accumulated and from which they can be allocated to product lines. Using ABC costing approach, for instance, offers a means of escape because the system tries to allocate costs based on the level of usage or consumption of such common costs by each product line instead of using arbitrary allocation formulas.
Answer:
b) $1,900
Explanation:
The computation of the total liabilities is shown below:
= Accounts Payable + Deferred revenue
= $700 + $1,200
= $1,900
The other items are related to the expenses which are shown in the income statement and current assets which are shown on the balance sheet
Therefore, only two items are shown in the total liabilities.
Answer:
Intrinsic value of the stock = $46.67
Explanation:
D1 = $7
Required return = 30%
Growth rate = 15%
Intrinsic value of the stock = D1 / (Required return - Growth rate)
Intrinsic value of the stock = $7/(0.3 - 0.15)
Intrinsic value of the stock = $7 / 0.15
Intrinsic value of the stock = $46.67
Answer: See explanation
Explanation:
I believe that the main thing here that can favor my company is if there's documentation for every process involved with my dealings with Regina Fabrics.
This could have been solved if she didn't reject the cash that was offered to her company after two months, so there should be a formal documents that shows that she rejected the cash which should be acknowledged and signed by her. Also, the monthly payments received by her should be documented as well.
With regards to the above, if there is a formal documentation in place, then I won't have to pay as the guaranty but if this isn't in place, then I may have to pay since there won't be evidences against her.