Answer:
B) $24,500
Explanation:
ABC's foreign tax credit should be $25,000, but there is a foreign tax credit limitation that it cannot exceed, that limitation would be:
[foreign income / (domestic income + foreign income)] x domestic tax liability
= [$80,000 / ($120,000 + $80,000)] x $61,250 = $24,500
Since $24,500 is lower than $25,000, then you have to take $24,500
Answer:
D
Explanation:
Late point differentiation is when the production process starts with a generic product and the end product is differentiated to a specific end product. Late point differentiation is used in firms where there is a high level of demand uncertainty
<u>Advantages of Late point differentiation</u>
1. it also consumers to receive a differentiated or customised product
2. It reduces the waiting time of consumers and allows consumers access quicker services
Answer: support level
Explanation:
The support level and the resistance levels are used by analysts for the identification of price points on a chart where a pause or reversal of the prevailing trend is being favored by the probability.
The support level occurs in a scenario whereby there'll a pause of a downtrend because of the concentration of demand. Therefore, in this case, the $43 price may be considered the support level.
Answer:
$1,200 favorable
Explanation:
Given,
Standard unit price for direct materials, SP = $8 per gallon
Actual direct materials price, AP = $22,800
Actual number of direct materials, AQ = 3,000 gallons
Actual unit price for direct materials = Actual direct materials price ÷ Actual number of direct materials
Actual unit price for direct materials = $22,800 ÷ 3,000 gallons
Actual unit price for direct materials = $7.6 per gallon
We know,
Direct Material Price Variance = (SP − AP ) × AQ
Direct Material Price Variance = $(8 - 7.6) × 3,000 gallons
Direct Material Price Variance = $1,200 favorable
