Answer:
D. The market value of the bond approaches its par value as the time to maturity declines. The yield-to-maturity approaches the coupon interest rate as the time to maturity declines.
Explanation:
Regardless of the market rate, the cash flow of the bond are fixed.
Thus, at maturity if the bond face value is 1,000 it will be traded at 1,000
days before it will be traded at 1,000 less the market discount rate but, they exposure to interest will be fewer than 10 years ago thus, their effect minimize. <u><em>As time passes the market value gets closer to maturity</em></u>
Same is throught for the YTM as time passes the interest weight in the market value decreases and thus, the maturity which tends to match face value increases. making the YTM closer than the actual bond rate.
Answer:
A. Consider all indirect manufacturing costs
B. Consider all manufacturing costs
C. Consider non manufacturing costs
Explanation:
A) Manufacturing overhead.
Consider all indirect manufacturing costs
B) Product costs.
Consider all manufacturing costs
C) Period costs.
Consider non manufacturing costs
Answer:
Correct option is B) $17.10
Total overhead rate per hour = $17.10
Explanation:
Overhead rates are based on cash outflow, they are not allocated and computed based on non cash items.
Total direct labor hours = 8,900
Thus total variable overhead rate = $5.50
Total cash fixed cost = $133,500 - $30,260 = $103,240
Fixed cost overhead rate = $103,240/8,900 = $11.60
Total overhead cost per hour = Variable overhead + Fixed Overhead = $5.50 + $11.60 = $17.10
<span>constantly changing in services but remain fairly stable in manufacturing</span>