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3 years ago

Finished goods inventory is reported on the

Business

1 answer:

Brut [27]3 years ago

7 0

Answer:

Explanation:

Finished goods inventory are considered part of the assets of a company, and due to their short life span, are recognized as current assets. Thus, they are recognized on the balance sheet as current assets.

Option A is incorrect because finished goods inventory are short-term assets and are usually disposed off within a year. Option B is incorrect as only sold finished goods make up revenue, not those held as inventory. Option D is incorrect because finished goods inventory are not period cost. However, the cost of purchasing or manufacturing them are considered as cost.

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3 years ago

One example of a primary market transaction would be the:

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3 years ago

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fiasKO [112]

Answer:

1. Overhead rate based on direct labor cost = Overhead applied * 100/Direct labor cost

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Overhead rate = 74% of direct labor cost

2. Preparation of the brief job-order cost sheet for the four jobs.

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Beginning balance, March 1 6,888 6,820

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3 years ago

Cazden Motors' stock is trading at $30 a share. Call options on the company's stock are also available, some with a strike price

slava [35]

Answer:

d. If Cazden's stock price rose by $5, the exercise value of the options with $25 strike price would also increase by $5.

Explanation:

A call option confers a right, not an obligation upon the call buyer to buy a security at a pre determined price, known as exercise price or strike price at a future date.

A call buyer would exercise his right only in the scenarios wherein the strike price is lesser than the current market price on maturity.

Profit of a call buyer is given by = CMP as on expiry - Exercise/Strike price - Option premium paid

wherein CMP= Current Market Price

A call option is "in the money" when it's strike price is less than it's current market price. In the given case, it means if the CMP today represents CMP upon expiry, call buyer would exercise his right and his gain would be $5 i.e $30 - $25.

Since the $25 exercise option is "in the money", an increase in stock price by $5 will also increase the strike price by $5.

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