Answer:
c. difference between total variable costs and total costs at a particular activity level
Explanation:
The high low method consists of calculating costs on the basis of highest & lowest activity & comparing their corresponding total costs.
Variable cost per unit is found by : change in cost divided by the change in activity level for two points
Variable Cost per unit = <u>Highest activity cost - Lowest activity cost </u>
Highest activity units - lowest activity units
Fixed Cost is thereafter calculated by subtracting Total Variable Costs from Total Cost
Fixed Cost = Highest Activity Total Cost - [ (Variable cost per unit) x (highest activity units)
Fixed Cost = Lowest Activity Cost - [ (Variable cost per unit) x (lowest activity units)]
The pattern that is being referred to above is called the NARRATIVE PATTERN. If a speech contains a story or a series of short stories in it, and only includes a vivid imagery, the setting, plot and characters, then this would fall in the narrative pattern. Narrative means to narrate or to tell something according to the other of when it happened.
Answer:
WACC = ke(E/V) + Kd(D/V)
WACC = 15(0.40) + 9(0.60)
WACC = 6 + 5.4
WACC = 11.4%
Explanation:
WACC is a function of cost of equity multiplied by the proportion of equity in the capital structure plus cost of debt multiplied by the proportion of debt in the capital structure. The proportion of equity in the capital is expressed as E/V (0.40) while the proportion of debt in the capital structure is expressed as D/V (0.60).
Answer:
$905,800
Explanation:
Calculation for Cost of goods sold
Total manufacturing costs $ 920,000
Add Begining Work in process inventory 97,000
Less Ending Work in process inventory (119,000)
Cost of goods manufactured $898,000
Add Begining Finished goods inventory $148,000
Less Ending Finished goods inventory$ (140,200)
Cost of goods sold $905,800
Therefore the Cost of goods sold is calculated to be: $905,800
Answer:
Option (C) is correct.
Explanation:
The money multiplier = 1 ÷ reserve ratio
= 1 ÷ 0.1
= 10
If a bank purchases $65 million of government securities from the Fed then this will reduce the money supply in the economy because the money from the bank is going.
The decrease in money supply:
= purchase amount × money multiplier
= 65 × 10
= 650 million
