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3 years ago

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

Business

1 answer:

Keith_Richards [23]3 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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Which of these is the most likely outcome of a financial crisis?

abruzzese [7]

More bankruptcies because if there is a crisis people are losing a lot of money and are more than likely filling for bankruptcies.

5 0

2 years ago

Read 2 more answers

Internal failure costs are costs incurred ________. A. after the company delivers poorminusquality goods or services to custome

Grace [21]

Answer:

c. when the company corrects poorminusquality goods or services before delivery to customers.

Explanation:

Internal failure costs are costs incurred when the company corrects poorminusquality goods or services before delivery to customers.

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2 years ago

Although a sales representative may skip a step in the personal selling process or might sometimes have to go back and repeat st

Verdich [7]

Answer: c. closing the sale is the final—and most satisfying—part of the process.

Explanation:

Closing the sale is NOT the final part of the process but rather the FOLLOW-UP.

And like option e in the question shows, following up can lead to more sales for the representative because following up can guage customer satisfaction and if the customer is satisfied, they could become loyal and recurrent customers.

5 0

3 years ago

Chang, Inc.'s balance sheet shows a stockholders' equity-book value (total common equity) of $750 comma 500. The firm's ear

Artist 52 [7]

Answer:

The price/book ratio is 2.45

This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity

Explanation:

For computing the price/book ratio, we have to apply the formula which is shown below:

= Market price of equity ÷ book value of equity

where,

the market value of equity = firm's earnings per share × price/earnings ratio × number of outstanding common stock shares

= $3.00 × 12.25 × 50,000 shares

= $1,837,500

And, the book value of equity is $750,500

Now put these values to the above formula

So, the answer would be equal to

= $1,837,500 ÷ $750,500

= 2.45

This price/book ratio indicates that the Chang, Inc company has 2.45 higher market value of the stock than the book value of the equity

4 0

2 years ago

You are choosing between these four investments and you want to be 95% certain that you do not lose more than 8.00% on your inv

borishaifa [10]

Answer: B. Corporate Bonds and T-Bills

Explanation:

As you want to be 95% certain, this would require a 95% confidence interval.

With the given returns and standard deviations, the range of returns expected will be computed by;

Upper limit = Return + 2*SD

Lower limit Return - 2*SD

Stocks

Upper Limit = 18.37% + 2 (38.79%)

= 96.0%

Lower Limit = 18.37% - 2 (38.79%)

= -59.2%

S&P 500

Upper Limit = 11.84% + 2(20.01%)

= 51.9%

Lower Limit = 11.84% - 2(20.01%)

= -28.2%

Corporate Bonds

Upper Limit = 6.47% + 2(6.98%)

= 20.4%

Lower Limit = 6.47% - 2(6.98%)

= -7.5%

T-Bills

Upper Limit = 3.46% + 2(3.14%)

= 9.7%

Lower Limit = 3.46% - 2(3.14%)

= -2.8%

The lower limit show the lowest return achievable given a 95% confidence level.

Only Corporate Bonds and T-Bills will give a minimum that is above 8% so they should be chosen.

5 0

2 years ago