Based on how each product consumes activities, activity-based costing allocates selling and administrative expenses. Hence, Option D is the correct statement.
<h3>What do you understand by Activity-based costing?</h3>
A costing technique that identifies activities in an organization and assigns the cost of every activity to all services and products in line with the real consumption via way of means of each is referred to as Activity-based costing.
This version of the costing technique assigns greater indirect costs into direct fees as compared to traditional costing.
Hence, Based on how each product consumes activities, Activity-based costing allocates selling and administrative expenses. Option D is the correct statement.
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Answer:
maybe a food delivery or clothes type website or a social networking website I don't know if this will help but I do know those 3 options are very common and well used
Explanation:
Answer:
Deductible expenses: 500 (hobby expense after revenue limit - 2% AGI floor)
.
Explanation:
AGI Before activity: $97,500
Hobby Rev. : $2,500
AGI after activity: 100,000
Hobby expense: 10,550
Hobby expense after revenue limit: 2,500 (lessor of hobby rev. and hobby expense)
2% AGI Floor: 2,000
Deductible expenses: 500 (hobby expense after revenue limit - 2% AGI floor)
$500 is the answer.
Answer:
E) $2.31
Explanation:
Shares offered to Firm B = Shares outstanding * 0.5
= 220 * 0.5
= 110 shares
Total shares of firm A after merger = Shares outstanding before merger + Shares offered to Firm B
= 750 + 110
= 860 shares
Total earnings of firm A after merger = $1,250 + 740
Total earnings of firm A after merger = $1,990
Earnings per share of firm A after merger = Total earnings of firm A after merger / Total shares of firm A after merger
Earnings per share of firm A after merger = $1,990 / 860
Earnings per share of firm A after merger = $2.31 per share
Answer:
The best estimate of the company’s cost of equity is 12%
Explanation:
Estimate of the company’s cost of equity = (Required Return as per Capital Asset Pricing Model + Cost of Equity) / 2
Required Return as per Capital Asset Pricing Model = Risk Free rate + Market Risk Premium * Beta
= 4.9 % + ( 6% * 1.2)
= 0.049 + 0.06 * 1.2
= 0.049 + 0.072
= 0.1210
= 12.10%
Cost of Equity = (Expected Dividend/Price) + Growth Rate
= [( $ 1.30 * 1.08) / $ 36] + 8%
= 0.039 + 0.08
= 0.1190
= 11.90%
The best estimate of the company’s cost of equity = (12.10 % + 11.90 % )/ 2
= 24% / 2
= 12%
Hence, the best estimate of the company’s cost of equity is 12%
