Answer:
The responses to these question can be defined as follows:
Explanation:
Given:
For point a:
Before tax
For point b:
After tax
So,
In a, answer is
In b, answer is
Answer: input control
Explanation:
From the question, we are informed that Coda Inc. is an apparel manufacturer and that the management at Coda prefers moderate control over the operations of the different departments such as R&D, design, marketing, and sales.
We are further told that it allocates a budget to each function at the beginning of each quarter. This is an example of implementing input control.
Answer:
$85.80 million.
Explanation:
The total compensation cost pertaining to the incentive stock option plan can simply be calculated by multiplying the the number shares the options permit holders to acquire by the fair value per option which is estimated by an appropriate option pricing model as given below:
Total compensation cost = 22 million × $3.90 = $85.80 million.
Therefore, the total compensation cost pertaining to the incentive stock option plan is $85.80 million.