Answer: .B. Using the fair value method
Explanation: Executive stock options (ESO) are documents that permits certain number of shares in a company's stock to be purchased at an approved strike price within a given time. This is a type of stock option is offered to company's executive and members of its management as a form of incentive and reward system.
The incentive is not made compulsory for company executive to use, but the company must respect the contract if a company's executive decides to use it.
Forms of Executive Stock Options.
• Non qualified stock Option: This is a type of executive stock option that does not allow for long term capital tax rate.
•Incentive stock option: A type of ESO in which capital gain tax rates are allowed but only under certain rules and conditions which must be followed and adhered to.
Goal displacement, satisficing, and groupthink are the<u> advantages of </u><u>group decision-making.</u>
Group decision-making simply means the process where several individuals act collectively in order to analyze a particular problem.
During group decision-making, several ideas are considered and the best approach or idea is chosen in order to achieve a particular goal.
Some of the advantages of the <em>group decision-making</em> include goal <em>displacement, satisficing</em>, and groupthink.
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Answer: a. Explicit Cost
b. Implicit cost
c Implicit cost
d. Explicit cost
Explanation:
Implicit cost is refers to the cost which has happened already but might not be shown as a separate expense. It is the opportunity cost which occurs when internal resources are used towards a project. Explicit costs, are the tangible assets and also the monetary transactions that can be found in real business opportunities.
Based on the explanation above, the answer to the following include:
a The wholesale cost for the guitars that Andrew pays the manufacturer = Explicit cost
b. The rental income Andrew could receive if he chose to rent out his showroom = Implicit cost
c. The salary Andrew could earn if he worked as an accountant = Implicit cost
d. The wages and utility bills that Andrew pays = Explicit cost
Answer:
818 units
Explanation:
Unit Contribution margin
= 300 - 160 - (2 × $26)
= $88
Fixed cost period
= (2 × $36) × 1,000 units
= $72,000
Break even = Fixed cost / Contribution margin
Break even = $72,000 / $88
Break even = 818 units
Therefore, XYZ company must sell 818 units to break even.
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