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spin [16.1K]
3 years ago
9

Select the false statement from the following.

Business
1 answer:
lesantik [10]3 years ago
7 0

Answer: Option C.

General,selling and administrative cost cannot be assigned to a cost object.

Explanation:

General, selling and adminstrative cost is the total of both direct and indirect selling cost, administrative cost and all general cost of the organisation. This cost include all the non production cost that they company incured at a specific time bond i.e cost to sell, cost to deliver product and services, rent, cost to manage the company, marketing expenses, salaries, accounting, bonuses e.t.c.

It is not assigned to a cost object because it is general ,cost of selling, and administrative cost.

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How physical assets valuation and development and research pose risk.<br>​
Alex Ar [27]

Answer:

The differences between US GAAP and IFRS pose an extra cost because international corporations must prepare two separate accounting statements. But besides that, other potential risks include paying higher taxes than what the companies should pay int their home countries and the uncertainty generated by changing rules.

Not only do current tax rates affect potential investments, e.g. currently companies in the US pay relatively low corporate taxes (Tax Cuts and Jobs Act of 2017) but these benefits end on 2025. But also different methods for valuating physical assets and R&D costs can represent higher than expected taxes. E.g. depending on a company's needs, it may be beneficial to expense all R&D costs right away, or maybe it would be better to capitalize some of them after technical feasibility is achieved (IFRS).

The main advantage of having uniform rules (e.g. UCC) is that all the companies know exactly what to expect and how to act. Certainty decreases risk, and less risk reduces costs.

Explanation:

In the US, the vast majority of firms use US GAAP as their accounting method, but around the world the IFRS method is used.

Physical asset valuation is the process of determining the value of your physical assets including P, P & E, and also inventories.

  • When valuing inventories IFRS uses FIFO, while US GAAP allows FIFO, LIFO or weighted average costing methods. US GAAP also values inventory at lesser of cost or market value, while IFRS values inventory at lesser of cost or net realizable value.
  • US GAAP uses the cost method to determine the historic cost of an asset, while IFRS uses basically the same method but does not include all the costs of location of the assets (e.g. cost of removing or clearing a facility).
  • US GAAP recognizes non-monetary exchanges while IFRS doesn't.
  • IFRS also allows the cost of asset to be revalued, which can result in unrealized gains or losses. The US GAAP only considers historic costs.
  • There are also other minor differences regarding depreciation, disposals and impairment rules.

Research and development must be expensed right away under US GAAP, while IFRS basically requires the same, it allows some capitalization of development expenditures if certain criteria is met (technical feasibility is achieved).

7 0
3 years ago
Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Can
valkas [14]

Answer:

$0.65

Explanation:

The unit cost per can of soup transferred to finished goods warehouse during March is the total manufacturing costs incurred by both Mixing and Cooking department and Canning Department divided by the total number of cans of soup transferred.

Both departments incurred $122,900  in manufacturing costs i.e($113,400+$9,500) while the total number of gallons of soup transferred to finished goods warehouse was 190,000 cans

Unit cost per can of soup=$122,900/190,000=$0.65  

6 0
3 years ago
a bond issue with a face amount of $500,000 bears interest at the rate of 10%. the current market rate of interest is also 10%.
timofeeve [1]

The Bond will sell at a price that is equal to $500,000 (OPTION A).

Bond: Bonds are fixed-income securities that reflect loans from investors to borrowers (typically corporate or governmental).

A bond can be compared to an agreement outlining the terms of the loan and the associated payments between the lender and borrower.

Interest rates and bond prices are inversely correlated. Accordingly, bond prices decrease as interest rates rise and increase when interest rates fall.

In a portfolio, bonds continue to offer these advantages whether yields are rising or dropping. I mean, both stocks and bonds may experience a short-term price fall during times of rising interest rates. The price of the bonds will decrease as they react to increased interest rates.

To learn more about Bonds, visit the following link:

brainly.com/question/25965295

#SPJ4

7 0
1 year ago
It is natural for people to forget to do things, especially if the tasks are not interesting.
Anarel [89]
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8 0
3 years ago
Read 2 more answers
Bayou Financial Corporation holds a security interest in property owned by Cajun Farms. Perfection of this security interest may
gayaneshka [121]

Answer:

a

Explanation:

8 0
3 years ago
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