Answer:
A company whose products differ in batch size and complexity and consume different amounts of overhead resources
Explanation:
Plantwide overhead rate is the overheads absorption rate calculated based on the total entity activity. This is ideal when when product consume overheads in <em>same</em> manner but in <em>different</em> quantities.
Answer:
1. Dividend Payment Requirements:
a. Common stock dividend rates are not fixed, unlike the preferred stock dividends. They are not cumulative like cumulative preferred stock. They are only paid when the directors declare them.
b. Preferred stockholders usually have a fixed rate of dividend. They have preference over common stockholders in dividend payments. Some preferred stockholders enjoy cumulative dividends, unlike common stockholders.
2. Common stockholders expect higher dividends than the preferred stockholders because they bear the residual business risks associated with the company.
Explanation:
Dividend income results when management declares it to be paid to the stockholders. They are usually paid out of earned income. The discretion to declare dividends lies solely with management. On the other hand, stockholders can decide to take advantage of the movements in stock prices at the stock exchange by earning capital gains through selling their shares. This income is not at the discretion of management insofar as the entity is being run profitably.
Answer:
b. $5m
Explanation:
If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m
Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)
In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45
While the Total Consideration = $50
Therefore Goodwill = $50m - $45m = $5m
Answer:
C. budgeting
Explanation:
The main components of money management that involve creating a plan for spending and saving during particular periods, such as a year, month, or week is known as BUDGETING
Budgeting is a part of the components of money management. It is an act of estimating the total expenses and income that deals with establishing a plan for spending and saving and usually gathered and regularly re-examine, including yearly, monthly, or weekly
