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4 years ago

Which of the following statements is true of a normal costing system?

Business

1 answer:

Keith_Richards [23]4 years ago

3 0

Answer:

Option number 4 is correct,In a normal costing system, unit costs are determined by adding actual direct materials, actual direct labor, and estimated overhead.

Explanation:

This approach to costing that makes use of estimated overhead as against actual overhead is favored by Generally Acceptable Accounting Principles such as the International Financial Reporting Standards(IFRS) and the U.S GAAP in order to derive the unit cost of an item of inventory for financial reporting purposes.

This deviates completely from standard costing where the cost an item is entirely calculated from predetermined material,labor and overhead costs.

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The agent of a broker-dealer registered in State A, sells unregistered non-exempt securities to customers in State A. These cust

Tom [10]

Answer:

The clients may initiate a civil lawsuit to recover their losses

Explanation:

It is assumed that the agent sold the securities with an intention to defraud. Under the Uniform Securities Act, the client may initiate a civil lawsuit so as to recover losses. Clients would sue based on the fact that the securities were unregistered and non-exempt while attempting to get back what they have lost in finance, attorney fees, and interest inclusive. These 3 damages are only applicable to insider trading.

3 0

3 years ago

Mrs. Brown is a lawyer, specialized in common-law and she

jeka57 [31]

Mrs. Brown has to follow the provincial law regime.

<u>Explanation:</u>

The basic difference between federal and provincial law is that federal law or the federal government enacts laws and legislation for all the state of the country while provincial laws are those laws that are for the specific province or state. Furthermore, the Federal government has the authority to enact criminal laws and enactments while the provincial law has got no such authority.
The Canadian Federal Government is solely responsible for making laws and legislation that covers and impacts the entire country while the provincial government has the authority to make enactments which directly impacts and concerns their territory. The federal laws concern laws governing the national interest of the country including national defense, criminal law, and national postal services while health care, public education, and highways are part of provincial government legislation.
In the given question, Mrs. Brown who is a lawyer by profession wants to create a company to operate her business activities in all provinces and territories - this is a situation which requires provincial law to be implemented since it concerns the business formation and it's operation for an individual and hence doesn't concerns the national interest of the country.

7 0

4 years ago

Booher Book Stores has a beta of 1.0. The yield on a 3-month T-bill is 3% and the yield on a 10-year T-bond is 6%. The market ri

mart [117]

Answer:

Cost of equity = 10.5%

Explanation:

<em>The capital asset pricing model is a risk-based model. Here, the return on equity is dependent on the level of reaction of the the equity to changes in the return on a market portfolio. These changes are captured as systematic risk. The magnitude by which a stock is affected by systematic risk is measured by beta. </em>

Under CAPM, Ke= Rf + β(Rm-Rf)

Rf-risk-free rate (long-term i.e 10 year treasury bill rate), β= Beta, Rm= Return on market., Ke- Return on equity (cost of equity)

This model can be used to work out the cost of equity as follows:

Ke= Rf + β (Rm-Rf)

Rf- 6%, β= 1.0, Rm- 10.5, E(r)- ?

Ke = 6% + 1.0× (10.5 -6)% = 10.5%

Ke = 10.5%

Cost of equity = 10.5%

3 0

3 years ago

The liabilities and owners' equity for Campbell Industries is found here: LOADING.... a. What percentage of the firm's assets

Alenkasestr [34]

Answer: a. 29.01%

b. 44.4%

Explanation:

a) This question is asking for the Debt to Asset Ratio which checks how much of a Firm's assets are financed by debt.

It is calculated by dividing Total Liabilities by Total Assets.

Total Assets from the Accounting Equation is the sum of Liabilities and Equity.

The question gives that as $6,595,000.

The Total Liabilities can in like manner be calculated by subtracting Total Equity from Assets.

The Total Equity is given by as $4,682,000.

Total Liabilities are therefore,

= $6,595,000 - $4,682,000

= $ 1,913,000

The Debt to Asset Ratio is therefore,

= Total Liabilities / Total Assets

= 1,913,000 / 6,595,000

= 0.2901

Debt to Assets Ratio = 29.01%

29.01% of the firm's assets are financed by debt.

b) $1.4 million in debt is used to buy a new warehouse. This means that both debt and Assets increase by 1.4 million.

The New Debt to Asset Ratio will be,

= Total Liabilities / Total Assets

= (1,913,000 + 1,400,000) / (6,595,000 + 1,913,000)

= 3,313,000 / 7,995,000

= 0.41438

= 41.44%

The New Debt ratio is 41.44%

I have attached the missing part from a similar question below. Check with your question to see if the figures tally and adjust accordingly if they don't.

7 0

3 years ago

Which Sales Channel has been opened to manufacturers because of digital tools?

Aleksandr-060686 [28]

The sales channel that has been opened to manufacturers as a result of digital tools is B2B.

Through B2B e-commerce, manufacturers can be able to sell their goods directly to the consumers through online platforms.

It should be noted that because we're in a digital era now, consumers can be able to make purchases for products through online sales platforms and the goods will be delivered to the person's address. This is vital for businesses as manufacturers can make more sales and improve their revenue.

In conclusion, the correct option is B.

Read related link on:

brainly.com/question/14513493

3 0

3 years ago