Answer:
a) Direct labor (DL)
b) Direct materials (DM)
d) Variable manufacturing overhead (VOH)
f) Fixed manufacturing overhead (FOH)
Explanation:
Absorption costing method allocates to a product the direct costs: direct labor used in the production process, and the direct raw materials that were transformed into the product, and also allocates the two types of manufacturing overhead: variable and fixed.
Answer:
The correct answer is letter "A": the price of the good to the consumer and producer.
Explanation:
While talking about markets in Business, signaling refers to the asymmetry of information between buyers and sellers. Usually, sellers provoke a buying pattern in consumers because of a piece of information that is unknown by other parties. Individuals providing that information are called <em>insiders</em>.
Thus, <em>signaling is an aspect of the market system inherent to the price that influences in the behavior of buyers and sellers.</em>
Answer:
0.097 OR 9.7%
Explanation:
Cost of Equity using CAPM-
Re = Rf + Beta (Rpm)
where,
Rf = Risk free return = 6%,
Rpm = Risk premium = 4%,
Beta = 0.9
Therefore,
Re = .06 + .9 (.04)
= 9.6%
Unlevered cost of equity:
ReU = Wd × rd + We × re
where,
ReU = Unlevered cost of equity,
Wd = Debt = 20%
rd = cost of debt = 8%
We = equity = 80%
re = cost of equity = 9.6%
Therefore,
ReU = 0.20 × 8% + .80 × 9.6%
= 9.28%
Levered cost of Equity:
New Debt = 60%,
New Equity = 40%,
New rd = 9%
ReL = ReU + (ReU - rd) (D ÷ E)
= 9.28% + (9.28% - 9%) (0.60 ÷ 0.40)
= 0.097 OR 9.7%
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Answer: True
Explanation: The above statement relates to the importance of logic studying in day to day life and the value of critical thinking in making decisions affecting one's personal and professional life.
An individual having ability to think logically and construct good arguments can have strong impacts on others around him or her by showing an attractive and strong personality.
Thus, from the above points we can conclude that the given statement is true.
