Answer: D. A manager's salary for work that is done in the corporate head office.
It is a cost incur in the process of production, but has no relationship with the production inventory, for example a manager and other worker's salary, marketing expenses, rent, advertising expenses, etc.
Explanation:
A period cost is also known as period expenses, it is a cost incur during a period when a business has no production, or business activities, it is a type of cost that cannot be recorded as production asset, production inventory, prepaid expenses, period cost are easily linked with accounting period and time than being linked with any production process or finished product.
Answer:
E) A and B only.
- A. Identifying the qualifying expenditures that lead to the creation of the intellectual property.
- B. Deciding how broadly or narrowly to define the concept of intellectual property.
Explanation:
The problem with valuating intellectual property is not what the intellectual property is worth once it is completed (e.g. patent), the real challenge is to properly identify the costs of developing the intellectual property. Research and development costs are usually reported as expenses for this same reason.
Another problem is to really define what can be considered intellectual property and specially what intellectual property should be assigned value. A trademark is an intellectual property, but most trademarks are really worthless, but some like Apple or Coca Cola are worth millions.
Answer:
$14 million
Explanation:
Operating working capital = Operating current assets - Operating current liabilities
Operating working capital = $20 million - $6 million
Operating working capital = $14 million
The total net operating capital that XYZ, Inc. has is $14 million
Answer:
D. encourages process-value analysis.
Explanation:
Activity based costing aims to allocate cost of different processes and activities to the department which utilizes the cost at maximum, on the basis of actual cost drivers.
Every activity has a cost driver, as for example for the expense or activity of rent is based on area allocated to each department thus cost driver here is area of the department.
Therefore, Activity based Costing encourages the process value analysis, which process is best.
It states which process added how much value to each product or department, it is a kind of process analysis.
Thus, correct option is D
<span>Saving decreases a firm's capital stock and investment increases its capital stock.
When a company isn't giving out many shares or allowing a person to invest in the companies shares, there is a decrease in the firm's capital stock. In this case, the firm is saving the amount of shares they are allowing to be purchased. When investors are able to invest in the company, there is an increase in capital stock.
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