Answer:
a
Explanation:
Vertical integration is when a firm acquires a business further in its production chain. For example, a sandwich company purchasing a bakery
Companies often do work on a cost-reimbursement basis. That is, Company B reimburses Company A for the cost of doing work for Company B. Suppose your company has a contract that calls for reimbursement of direct materials and direct labor, but not overhead. Following are costs that various organizations incur; they fall into three categories: direct materials (DM), direct labor (DL), or overhead (OH). Classify each of these items as direct materials, direct labor, or overhead.
Answer:
Correct option is D.
<u>End of the month after the quarter.</u>
Explanation:
FUTA taxes must be paid quarterly by the last day of the month following the end of the calendar quarter.
- April 30th
- July 31st
- October 31st
- January 31st
Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".
Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>
The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.
Answer:
The annual worth of the overhead costs for 7 year-period is
A = $389743.42.
<em>Then the time value of the annual worth is discounted by 8%</em>
∴ $389743.42 x 0.08 = $31179.47.
Explanation:
Using the formula
A = P(1 + r/n)
Where:
A = ?
t = 7
P = $200,000.00
r = 10%
n= 1
TVM =8%
∴ A = $200,000.00(1 + 0.10/1)
A = $200,000.00(1.10)
A = $200,000.00(1.9487171)
A = $389743.42
<em>Then the time value of the annual worth is discounted by 8%</em>
∴ $389743.42 x 0.08 = $31179.47
