Answer:
Letter d is correct.<u> Intermediate goods.</u>
Explanation:
Intermediate goods are those that correspond to the inputs or manufactured goods that are used to give rise to the production of a final good.
Any good that is acquired for the production of another good is considered an intermediate good. Its use occurs by incorporation into a good, or destruction, which is when they are destroyed for a new good to be produced.
Some examples of intermediate goods are: electronic components of a computer, bread baking, production equipment, tools used to produce another good, a car engine and others.
Answer: <u><em>Total production cost per unit = $8 +$7.25 + $5.50 = $20.75</em></u>
Explanation:
Given :
Direct labor at $7.25 per unit;
Direct material at $8.00 per unit;
Variable overhead at $5.50 per unit;
Fixed overhead at ($67,500/9,000 units) $7.50 per unit;
Total production cost of $28.25 per unit.
Now,
Under Absorption Costing, the total production cost per unit is calculated as
Total production cost per unit = Direct Materials +Direct Labor + Variable Overhead
<u><em>Total production cost per unit = $8 +$7.25 + $5.50 = $20.75</em></u>
Answer:
<em>For Year 2 and Year 1 the revenue to assets ratio is: </em>
<em>a. Year 2, 9.52; Year 1, 6.90</em>
Explanation:
<em>Year 2 Sales were equivalent to:-</em>
= 5,000,000 / (450,000 + 650,000) / 2 ]
= 9.52
<em>Year 1 Sales were equals to:-</em>
= 3,500,000 / [(565,000 + 450,000) / 2 ]
= 6,90
Answer:
True
Explanation:
Once the company starts taking loans to fund its investment their financial risk starts growing which is only beared by the Shareholders not by the bond holders. This additional risk faced by the ordinary share investors means that now they will require additional return. Remember the financial risk only exist if their is the use of leverage or we can say if the financial leverage increases then the financial risk increase. And if the financial risk increases then this additional risk is only beared by the ordinary share investors. Now additional risk beared is the reason why ordinary shareholders means that this has increased the riskiness of their equity investment.