Answer:
Product costs do not flow from the balance sheet to the income statement.
The correct answer is A.
Explanation:
Product costs flow from the income statement to the balance sheet.
Unlike direct material and direct labour cost, overhead cost must be allocated to products using a suitable basis.
Product costs are expensed in the period incurred in the income statement.
Depreciation on manufacturing equipment is an indirect product cost because it is not directly traceable to a cost unit or cost center.
Answer:
The advantages of starting own business:
- Flexibility: a person who starts his own business does not necessarily have to work 9/5 monday-friday, he can set his own schedule. Needless to say, many business owners work longer hours than regular employees, but the do so because of the hope to earn more money from profits than from a regular wage.
- The possibility of profit: an employee in a legal firm will not be able to obtain any dividends (unless he owns stock), while the very definition of a business owner is someone who obtains profits.
- Fulfillment: it is probably more fulfilling to see your own business develop and grow than go to work everyday for someone else's company.
Some disdavantages are:
- Risk: starting a business is risky. The business might result in losses instead of profits, in other words, the business may fail.
- Capital needs: to start a business, you need some capital, and it is not always easy to obtain. Most business owners either get debts, or liquidate some of their own assets (house, car, etc) to finance the company.
- Longer work hours: as stated above, it's very likely that a business owner will have to work night and day, especially during the first stages.
Answer:
The present value of the contract is 0.5% higher if the rent is paid at the beginning of the month. That is equal to $11.28 for every $100 of rent.
Explanation:
if the rent is paid at the beginning of the month, the present value of the lease contract will be:
PV = monthly rent x PV annuity due factor
we are not given the monthly rent, but we know the PV annuity due factor for 0.5% and 24 periods = 22.67568
if the rent is paid at the end of the month, the PV = monthly rent x PV ordinary annuity factor
the PV ordinary annuity factor, 0.5%, 24 periods = 22.56287
assuming that the rent is $100 (just to calculate a %), the PV of an annuity due = $2,267.57
the PV of an ordinary annuity = $2,256.29
the difference between them = [($2,267.57 / $2,256.29) - 1] x 100 = 0.5%
<span>Chris may be able to recover money from the courts on the basis of quasi contract. A quasi contract is an obligation of one party to another imposed by law independently of an agreement between the parties.</span>