A. Requires the investment be increased by the reported net income of the investee.
Answer:
True
Explanation:
The economic environment comprises of economic factors to which an organization is exposed to. Economic environment is an organization's external environment since all organizations are exposed to it and it is not organization specific.
Economic environment includes factors such as changes in interest rates, currency fluctuations, government economic policies, wages etc.
These refer to the factors which affect the whole economy and since organizations are a part of this environment, their market operations are affected.
Answer:
B. The required rate of return must exceed the growth rate.
Answer:
The correct answer is letter "B": Indirect materials.
Explanation:
Indirect materials are useful for the production process of a good but that cannot be traced. Normally, these types of materials are used in small amounts. Examples of indirect materials are oil, glue, tape, fittings and fasteners, and cleaning supplies.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Materials handling $27,000
Direct materials $3,000 Direct labor (600 hours) $9,000 Number of material moves 4
Expected activity for the four activity drivers that would be used are: Machine hours 5,000 Material moves 600 Setups 200 Quality inspections 1,000
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 27,000/600= $45 per material move
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 45*4= $180