Codes that are too detailed encourage employees to substitute rules for judgment.
1 answer:
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product cost ( direct materials,direct labour and manufacturing overheads).
It is a combination of products cost materialize cost on assets and period cost materialist on difference income and expenses in time.please find the attachment on the differences.
Explanation:
- Product cost idealizes on inventory, assets to the companies.
- It has segregation direct materials product sales.
- It has segregation direct labour cost maintaing products.
- It has segregation of manufacturing issues with machine for products.
- Period cost is an event which happens at certain point of time.
- It administrative,commission and significant understanding.
- Delivers different set of cost accounting.
- It raises issues and exponential cost incurred.
Answer:
= 0.3274 or, 32.74%
Explanation:
We know,
Capital Structure = Debt + Common Stock + Preferred stock
Given,
Common Stock = 4,000,000 shares
Share price = $21
Total common stock = No. of shares x share price
Total common stock = 4,000,000 shares × $21 = $84,000,000
Preferred Stock = 3,000,000 shares
Share price = $10
Total preferred stock = $10 x 3,000,000 shares
Total preferred stock = $30,000,000
Debt rate = 111% = 1.11
Debt = 50,000 bonds x $1000 par x 1.11
Debt = $55,500,000
Total Capital = $(55,500,000 + 84,000,000 + 30,000,000)
Total capital structure = $169,500,000
The weight for debt in the computation of OMG's WACC
=
=
= 0.3274
or, 32.74%