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3 years ago

Product costs estimated using the sequential method of cost allocation

Business

1 answer:

TiliK225 [7]3 years ago

8 0

Answer:

The correct answer is letter "C": one service department is chosen to allocate costs first.

Explanation:

The sequential method of cost allocation or the allocation method is used to place the cost of service departments to other departments in the same firm. The first department chosen does not receive an allocation from the other departments. Then, the cost of each department is distributed one by one.

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If per capita gdp in 2014 was $900, in 2015 was $1,000, and in 2016 was $1,200, the growth rate of per capita gdp between 2014 a

worty [1.4K]

The formula for Growth rate of per capita GDP is:

Growth Rate = (per capita GDP in 2016 - per capita GDP in 2014) * 100 / per capita GDP in 2014

Growth Rate = (1,200 - 900) * 100 / 900
= 300 * 100 / 900
= 30,000/900
= 33.33 or 33

Therefore, 33% is the per capita growth rate between 2014 and 2016.

6 0

3 years ago

Lewis is the manager of the marketing department at his company. Some of his colleagues are also his friends. Lewis often lets h

pshichka [43]

Answer: Justice.

Explanation:

Justice is not being totally applied by Lewis in controlling the marketing department, as he uses different controlling technique for his friends and a harsher control technique for others. For Lewis to be just, he has to apply same controlling techniques for all workers.

3 0

3 years ago

Unit Test

ad-work [718]

The work value that Ramona feels the strongest is that the work with people

Explanation:

Work values are the values that are employed in a work place and there are many kinds of work values that develop the inter personal relationship between peoples

In the given statement she loves to work with the people in the after school program she loves to interact with the people talk with them and gain some personal experience and she feels them the strongest

4 0

3 years ago

Equity method for stock investment Obj. 3 Show Me How icon At a total cost of $5,600,000, Herrera Corporation acquired 280,000 s

marusya05 [52]

Answer and Explanation:

The journal entries are shown below:

1 Investment in Tran Corp $210,000

To Investment Income (280,000 ÷ 800,000 × $600,000) $210,000

(Being the investment in Tran corp. is recorded)

For recording this we debited the investment in tran corp as it increased the assets and credited the investment income as it also increased the revenue

2 Cash (280,000 × $0.50) $140,000

To Investment in Tran Corp $140,000

(Being the payment of cash dividend is recorded)

For recording this we debited the cash as it increased the assets and credited the investment in tran corp as it decreased the assets

(B) The equity method is appropriate as the Herrera owns 35% which come from

= $280,000 ÷ $800,000

= 35%

And it can be exercised when there is a significant influence or effect over the investor

6 0

3 years ago

You bought one of Great White Shark Repellant Co.’s 5.8 percent coupon bonds one year ago for $1,030. These bonds make annual pa

defon

Answer:

total rate of return on the Bond = 9.40%

Explanation:

given data

coupon bonds = 5.8%

bonds price = $1,030

maturity time = 14 year

required return on the bonds = 5.1 percent

solution

we know here market price of the bond is Present Value of Coupon Payments + Present face Value

so that face Valueof bond = $1,000

and here annual Coupon Amount will be

annual coupon amount = $1000 × 5.80%

annual coupon amount = $58

and here Market Price of the Bond will be

Market Price of Bond = Present Value of Coupon Payments + Present face Value ......................1

here Present Value of Coupon Payments at PVIFA 5.10% and 14 Years

Present Value Annuity Inflow Factor (PVIFA) = $\frac{1-(1/(1+r)^t}{r}$ ....2

Present Value Annuity Inflow Factor = $\frac{1-(1/(1+0.0510)^14}{0.0510}$

Present Value Annuity Inflow Factor = 9.83566

and

Present Value Inflow Factor (PVIF) 5.10%, 14 Years= $\frac{1}{(1+r)^t}$ ...........3

Present Value Inflow Factor (PVIF) = $\frac{1}{(1+0.0510)^14}$

Present Value Inflow Factor = 0.49838

Market Price of Bond = ( $58 × 9.83566 ) + ( $1,000 × 0.49838 )

Market Price of Bond = $1,068.85

so total rate of return on the Bond will be

total rate of return on the Bond = [ { Annual Coupon Amount + ( Change in Bond Price ) } ÷ Current Price] ...............4

total rate of return on the Bond = $\frac{58+(1068.85-1030)}{1030}$

total rate of return on the Bond = 9.40%

5 0

3 years ago