Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
Explanation:
Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.
For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .
The present value of both are:
= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²
= $1,486.43 = $8,264.46
<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>
Foreign Corrupt Practices Act
https://en.m.wikipedia.org/wiki/Foreign_Corrupt_Practices_Act
Answer:
COGS= $543,000
Explanation:
Giving the following information:
Cost of goods manufactured for the period 548,000
Finished Goods Inventory, January 1 44,000
Finished Goods Inventory, December 31 49,000
<u>To calculate the cost of goods sold (COGS), we need to use the following formula:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 44,000 + 548,000 - 49,000
COGS= $543,000
Answer:
$12.50
Explanation:
Variable costs are those costs which changes with the change in activity driving the cost (Sales. production etc.). It can be direct or indirect costs.
Whereas fixed costs are those costs which remains constant and do not change with the change in activity.
All the following costs are variable costs
Average Cost per Unit
Direct materials $6.45
Direct labor $3.30
Variable manufacturing overhead $1.25
Sales commissions $1.00
Variable administrative expense <u>$0.50</u>
Total variable cost per unit <u>$12.50</u>
All the following costs are fixed costs.
Fixed manufacturing overhead $3.00
Fixed selling expense $1.05
Fixed administrative expense $0.60