Answer is a. labor; average of the prices paid by urban
Once a month, the bureau of Labor statistics calculates the consumer price index, which is a measure of the average of the prices paid by urban consumers for a fixed basket of consumer goods and services.
Answer:
True
Explanation:
Payment of dividend by a corporation depicts better financial picture and stability in earnings. And like business expenses, even the dividend paid by corporations is deducted to arrive at taxable income.
While an expense merely reflects the costs incurred, dividends reflect viable financial position which attracts investments from investors and establishes public confidence.
Answer:
$4.44
Explanation:
P0 = $2.40 / 1.08+ $2.40 / 1.08 = $4. 44
Answer: c. greater because interest rate changes have a greater impact on distant cash flows than near-term cash flows.
Explanation:
Interest rate changes have a greater impact on distant cashflows because those cashflows will be exposed to the interest rates for longer. This means that they will be subjected to more discounting than a cashflow that is due in one year which would be subject to only a single year of discounting.
For instance, assume the required rate of return for two investments is 10%. One investment yields $10,000 in 20 years and another yields $10,000 in 2 years .
The present value of both are:
= 10,000 / (1 + 10%)²⁰ = 10,000 / ( 1 + 10%)²
= $1,486.43 = $8,264.46
<em>Notice the difference. The longer term investment was more exposed to interest rate effects. </em>
Answer:
Variable Expense - Cost driver
Machine setup cost - Number of Setups
Machine running cost - Machine hours used
Ordering Cost - No of orders placed
Labor Cost - Labor hours worked
Raw Material - Material usage rate
Transportation Cost - No of Orders delivered.
Explanation:
An organizational structure in one in which certain activities are aligned to achieve the ultimate goal of the organization. Similar types of set of machines together to get particular output product. The cost drivers in organizational structure can influence the output of a company.To determine the product cost per unit using the absorption costing we find the per unit rate for Variable Overheads for the activity by diving the total variable cost by its cost driver.
