Answer:
False
Explanation:
A low risk investment slightly increase over time whereas high risk investment may loose or win a lot of money.
So, a person who is risk averse is likely to attract towards capital than preference over higher return.
Answer: True
Explanation:
Decision regarding an asset replacement is usually based on both the internal rate of return and the net present value of the incremental cash flows.
Therefore, it should be noted that this brings about the complications when comparing the development of relevant cash flows to the expansion decisions.
Answer:
Answer is Option 2: Life insurance proceeds received after the death of a spouse.
Explanation:
Life insurance proceeds are generally not taxable. They are paid after insurer's death. It would only be taxable if the policy was given to the spouse for a price. Even if proceeds are paid under accidental policy or health insurance policy, they are not taxable. Proceeds are always paid as a lump sum amount and not in installments.
Other given options, 1, 3 and 4 like reimbursement for medical expenses, taxable portion of a disaster relief payment and dividends exceeding net premiums paid are taxable.
Answer:
The correct answer is: Managerial Judgment.
Explanation:
To begin with, the concept known as "Managerial Judgment" in the field of business refers to the process of managerial decision making done by the manager of the organization, therefore that it could be also understood as the ability that they have in order to resolve the situations that might cause harm to the operations or to the plans of the company. That is why that when sometimes the mathematical models are insufficient to predict future personnel requirements then the managerial judgment enters in the game in order to try to acquire the best solution as possible depending on the situation presented for the managers.
Answer:
the allocated direct manufacturing overhead costs of Job 56 is $25
Explanation:
Overheads in manufacturing process are allocated to jobs or products using cost drivers or surrogates.
<em><u>First Step : Determine the Pre-determined Overhead rate</u></em>
Pre-determined Overhead rate = Budgeted Overheads / Budgeted Activity
= $2,000 / 800
= $ 2.50 per labor hour
<em><u>Step 2 : Determined the Amount of Overhead allocated to Job 56 based on labor hours utilised</u></em>
Overhead for Job 56 = Pre-determined Overhead rate × Hours Used
= $ 2.50 × 10
= $25
