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guajiro [1.7K]
3 years ago
15

The agency problem wherein ownership and control of a corporation are separate is associated with:_______

Business
1 answer:
11Alexandr11 [23.1K]3 years ago
7 0

Answer: The shareholder model of corporate governance

Explanation:

The agency problem is typically a conflict of interest in a relationship whereby a party is expected to act in the best interest of the other party. It should be noted that in corporate finance, the agency problem is a conflict of interest that takes place between the management of the company and the stockholders.

The agency problem wherein ownership and control of a corporation are separate is associated with the shareholder model of corporate governance.

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2 years ago
Read 2 more answers
Conversion cost per equivalent unit is the combined costs of direct materials and factory overhead.
Maksim231197 [3]

Answer:

False

Explanation:

Cost

This is simply defined as a payment of cash or the commitment to pay cash in the future for revenues purpose. E.g. The cash used to purchase a tractor, is the cost of the tractor.

Conversion costs

This is simply regarded as direct materials, direct labor, and factory overhead costs that can be selected together or grouped together for analysis and reporting. It consist of direct labor in factory overhead costs.

The Equation for Conversion cost is simply = Direct Labor Cost + Manufacturing Overhead Cost.

While the Equivalent Units of Production = Number of Units Transferred to the next department + Equivalent Units in Ending Works in Process Inventory.

The equation for Equivalent units of production for conversion cost is given below: Units completed and transferred out + Equivalent units in ending work in process for conversion cost.

The equation for Cost per equivalent unit for conversion cost is simply =

(conversion cost of beginning work in process + conversion cost added during the period)/ Equivalent units of production for conversion cost.

8 0
2 years ago
How did speculative investing weaken the stability of the stock market
Lena [83]
The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks. 
7 0
3 years ago
Compass Inc. purchased 1250 bags of insulation, on account, from Glassco Inc. The bags of insulation cost $5.50 each. Compass pa
Alina [70]

<u>Solution and Explanation:</u>

<u>Journal entry to record the purchase the bags of insultaion.</u>

Date            Particulars                                  Debit                       Credit

                 Inventory                                       $6875

                 accounts payable                                                        $6875

(Purchased insulated bags from Glassco Inc., 1250bags at the rate $5.5 each)

<u>entry to record the payment for shipping</u>

                Inventory                                          $320

                   cash                                                                           $320

( paid shipping charges for bags to warehouse)

<u>entry for return of the defective bags</u>

              accounts payable                                 $275

                   Inventory                                                                       $275

( returned defective bags to glassco Inc)

<u>To record the payment for the bags kept by compass.</u>

          Accounts payable                                        $6600

            cash                                                                                           $6600

( payment for remaining bags to Glassco Inc., )

4 0
3 years ago
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