Assets that are not expected to provide benefits for a number of accounting periods are called b. fixed assets
Answer:
decreases
Explanation:
When bonds are sold at a premium, it is sold at a price higher than the par value. For example, if the par value is $100, the bond would be selling at a premium if it is sold at $101. At expiration of the bond's tenor, the price of the bond must equal its par value, so at each each interest payment day, the interest expense decreases
Answer:
the freedom for individuals to choose businesses, the right to private property, profits as an incentive, competition, and consumer sovereignty.
Explanation:
Answer:
d.$18,900
Explanation:
Gross Profit is the net of Sales value and production cost in the period for the units sold. Under absorption costing all the direct and indirect costs incurred in the production of products are included in the total production cost. As the cost is available for 100 units produced we need to calculate the cost of 90 unit and deduct this cost from the sales value to determine the gross profit and then deduct the operating expenses to calculate the operating income.
Sales (90 units) $90,000
Less: Production costs:
Direct materials ( $40,000 x 90/100 ) $36,000
Direct labor ( 20,000 x 90/100 ) $18,000
Variable factory overhead ( 2,000 x 90/100 ) $1,800
Fixed factory overhead ( 7,000 x 90/100 ) <u>$6,300</u>
Total Production cost <u>($62,100)</u>
Gross Profit $27,900
Less Operating expenses:
Variable operating expenses $8,000
Fixed operating expenses $1,000
<u>($9,000)</u>
Operating Income <u>$18,900</u>
