Answer:
Two ways: using VIX futures and traded notes or S&P 500 options and neutral investment strategies.
Explanation:
Volatility is a market's tendency to rise or fall sharply within short periods of time. It is usually measured using standard deviation or return on investment. There are several ways to handle market volatility. One is to use exchange-traded instruments, such as VIX future contracts and exchange traded notes. VIX provides real time estimations of greed and fear levels, as well as volatility expectations in the next 30 sessions. The other way is to use S&P 500 options and delta-neural strategies.
Answer:
Explanation:
The journal entry to record the bad debt expense is shown below:
Bad debt expense A/c Dr $19,340
To Allowance for doubtful debts $19,340
(Being estimated uncollectible amount is recorded)
For recording this journal entry, we debited the bad debt expense account and credited the Allowance for doubtful debts so that the amount is correctly recorded in the correct item.
Answer:
A : $28.25 is the total production cost per unit under Absorption Costing.
Explanation:
The absorption costing method is a costing method that is applied in evaluating inventory which not only covers the cost of materials and labor but including both variable and fixed manufacturing overhead costs also.
Under the absorption costing, the unit product cost is calculated as follows:
<em>Total production cost per unit = Direct materials + Direct labor + Variable overhead + Fixed manufacturing overhead allocated</em>
Total production cost per unit = 8.00 + 7.25 + 5.50 + 7.50
= $28.25
$28.25 is the total production cost per unit under Absorption Costing.
Answer:
the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit
Explanation:
The computation of the effect on Molding Division’s net income if it accepts the $18 transfer price is shown below:
= Transfer price - variable cost per unit
= $18 - $12
= $6 per unit
Hence, the effect on Molding Division’s net income if it accepts the $18 transfer price is $6 per unit
So, the same is to be considered and relevant
