An example of delayed purchasing is when you would pay for a hot tub in 39 weeks and receiving the hot tub today. It is like a car loan, you would pay for the car over a certain time frame and you would drive home with the car that day. The correct answer is B.
As the processing costs are directly related to the direct and the indirect costs of the manufacturing processes. These costs are usually assigned to large scale batch processings and assigned to every individual cost of each unit. Assigned when the company processes huge homogeneous products.
<u>Thus has the following four steps</u>:
1. Summarize the flow of all physical units of the output.
2. Compute the output in the terms of the equivalent units.
3. Summarize total costs to the account for and the Compute equivalent unit of costs.
4. Assign total costs to the units completed and to the units in ending work in the process inventory.
Mary's gross income should include her $73,000 salary, the $1,200 she earned in corporate bond interest and the $23,000 car that she won on a game show (game show prizes are filed as miscellaneous income).
Employer provided disability insurance is not included in the gross income of the employee. The $600 can be deducted as a business expense by the employer.
Worker compensation is a type of insurance that employers pay to insure employees from job related illnesses or accidents. So the $5,000 in worker compensation are also business expenses and are not part of the gross income of the employee.