Answer:
DR. CR.
Inventory Premium $6,880
Cash $
6,880
Cash $
339,200
Sales $
339,200
Premium Expense $3,464
Inventory Premium $3,464
Premium Expense $1,624
Premium Liability $1,624
Explanation:
Inventory Premium = 8,600 x $0.80 = $6,880
Sales = 106,000 unit x $3.20 = $339,200
Premium Expense = (43,300/10) x $0.8 = $3,464
Premium Liability = (((106,000 x 60%) - 43,300) / 10) x $0.8 = $1,624
Answer
The answer and procedures of the exercise are attached in the following archives.
Explanation
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
activity based costing
Explanation:
In activity based costing all the expense are provided as according to the activity status it is concerned to. Basically no expenses are charged simply, Rather they are charged based on the activity they are linked to.
Here also the employee expense are not normally charged to salary head, rather it is charged on some activity and as cost of completing such activity.
As the expense is specifically charged to a specific activity as a costing to it, it is following the activity based costing technique.
Answer:
O True
Explanation:
Amortization is the gradual reduction in a value or balance of anything over a specified period. Evenly over life amortization of loan is the distribution of outstanding amount over remaining life / period. in this example $20,000 is amortized over 60 months which is 20,000 / 60 = $333.33 per month. So the statement is True.
Buying several different investment alternatives to spread the risk helps an investor achieve diversification. The correct option among all the options that are given in the question is the last option or option "D". By diversifying the investment, a person can earn less, but will never loose all his investments in one shot.